1.  JSC "Rīgas kuģu būvētava" was registered at the Company Register of

the  Republic  of Latvia on December 5, 1991; re-registered on December

21, 1995, registration certificate #000304589.

2. Legal address: 2 Gāles Street, Riga, LV-1015.

3. Purpose of the issue: share capital increase.

4. Company share capital is increased via a closed share issue.

5. All closed issue shares are voting shares.

6.  The  present  share  capital is LVL 11,672,107, built of 11,672,107

common shares with nominal value LVL 1.

7.  The  increase  will  be by LVL 1,500,000, built of 1,500,000 common

shares with nominal value LVL 1.

8.  Subsequent  to  the  increase,  Company  share  capital will be LVL

13,172,107, built of 13,172,107 common shares with nominal value LVL 1.

9.  Holders  of  closed  issue  shares may not transfer them prior to 6

months after subscribing.

10.  Subscription  to  the  closed share issue is open from February 1,

2001 and closes on July 1, 2002.

11. Subscribed shares have to be paid in to full extent by December 31,

2002.

12.   Subscription  will  take  place  at  JSC  "Rīgas  kuģu  būvētava"

headquarters  at 2 Gāles Street, Riga, on business days from 10:00 till

17:00.

13.  Shareholders  may exercise their pre-emptive rights within 1 month

after   a  notification  has  been  published  in  newspaper  "Latvijas

Vēstnesis".

14.  The  newly  issued  shares  are eligible to dividend starting with

January 1, 2002.

15. Shares in the new issue to not imply any pre-emptive rights.