On  March 11, 2002 a change of JSC "Latvijas balzams" major shareholder

has  taken  place  as  a  part  of restructuring of international group

"S.P.I.  grupa".  An  agreement was signed regarding sale of SIA "NTBDC

LB"-owned  49.95%  of "Latvijas balzams" shares to "S.P.I. Distilleries

B.V", a "S.P.I. grupa" company  registered in Holland.

Apart  from  that,  on  March  12  "S.P.I.  Distilleries B.V" signed an

agreement  with  "Latvijas  balzams"  regarding buy-back of shares from

other  shareholders.  As  a  result,  the company controlled by "S.P.I.

grupa"  will hold over 50% of "Latvijas balzams shares. Pursuant to the

provisions  of  Article  65 of the Latvian law "On Securities", "S.P.I.

Distilleries  B.V"  is  planning to offer share buy-back to the rest of

"Latvijas  balzams"  shareholders  in  a very future. "S.P.I. grupa" is

seeking  to  obtain  control interest in "Latvijas balzams" in order to

enable  a  more efficient decision taking regarding long-term strategic

development of the company.