Yesterday,  6  July  2004,  JSC  Latvijas  kuģniecība  ( LASCO ) signed

Shipbuilding Contracts for two addition tankers. 



As reported earlier, on 19 May 2004 LASCO Supervisory Council's consent

was  given  to  exercise  an  option  for  two  tanker  newbuilds.  The

Shipbuilding  Contract  for  eight  MR  (middle range) product tankers,

signed  by Crown Navigation Inc. ( LASCO's wholly owned subsidiary) and

3. Maj shipyard in Croatia, provides for an option for Crown Navigation

to order two additional vessels with delivery in 2008.

The  specification  of  the  two tankers will be similar to that of the

eight  vessels  already  ordered: 51,800-deadweight-ton product tankers

with  double-hull  will  be  constructed to carry both oil and chemical

products.  Also  these  vessels  will be built to ice class, which will

enable  to  considerably expand the region of their employment. The two

additional  tankers  are  scheduled  for delivery in the second half of

2008.

It  is  planned  that  bank  loans  will cover 70% of the total project

costs, while 30% will be financed by LASCO itself.

For  the  Shipbuilding  Contracts to come into effect, Crown Navigation

Inc  .  shall  by  30  September  2004 have received a reputable bank's

guarantee  on  the  reimbursement  of  the  amounts  paid  in  case  of

non-performance of the Contract by 3. Maj shipyard.



Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120

Fax: +371 7820239

E-mail : ozolina@lsc.riga