2004.07.08, Daugavpils Lokomotīvju Remonta Rūpnīca, RIG

Investment  of 10 million USD, which was published in mass media, is an

amount  needed  to  set  up  and  develop a modern manufacturing in the

company   "Lokomotīve".   This  amount  was  discussed  with  potential

investors   when  JSC  "Lokomotīve"  was  looking  for  investors.  The

necessity  of  such  investment was stated in the tri-lateral agreement

about conditions and procedure of acquiring JSC "Lokomotīve" shares and

attracting  strategic  investor,  which  was  signed on April 22, 2004,

among  JSC  "Lokomotīve",  JSC  "Remlok"  and Estonian company "Skinest

Projekt".

Detailed  investment  substantiation  will  be  stated in the company's

strategic  plan,  which  will  be the task of the management of the JSC

"Lokomotīve"  after the General Shareholders Meeting on August 4, 2004.

Approval  of  an investment plan deadlines is dependent on JSC "Skinest

Projekt",  which  has  signed  an  agreement for acquiring JSC "Remlok"

shares,  thus indirectly becoming a 49% shareholder of JSC "Lokomotīve"

(this  deal  is  not  completed).  It  is  also  dependent on the other

shareholder - Russian-Estonian joint-venture "Spacecom", which acquired

36,36%   of   JSC  "Lokomotīve"  shares  from  the  former  shareholder

"Parangon".  As  soon  as  JSC  "Lokomotīve"  will  have  more detailed

information,  it  will  be  provided  immediately  to  the  Riga  Stock

Exchange.



JSC "Lokomotīve"

Chairman of the Management Board

E.Bušs