JSC  "Latvijas  balzams"  Supervisory Board report regarding JSC "Rigas

vini" and JSC "Latvijas balzams" reorganization:

1.  Total forecasted economy from merger of two companies LVL 1 390 000

a year.

2.  On  December 15,1999 JSC "Latvijas balzams" has acquired 46 317 JSC

"Rigas  vini" shares ( 97,53% from statute capital) in total for LVL 12

382  874.  To  ensure  JSC "Rigas vini" minority shareholders rights to

exchange  their  JSC  "Rigas  vini"  shares  for JSC "Latvijas balzams"

shares,  JSC  "Rigas vini" have acquired 111 144 JSC "Latvijas balzams"

shares in total LVL 54 003.