Extraordinary  general meeting of JSC "Liepājas metalurgs" shareholders

of December 5, 2002 resolved to increase share capital by LVL 3,300,000

via  a  closed share issue of  3,300,000 registered  voting shares with

nominal  value  LVL  1.  The  present  shareholders  may exercise their

pre-emptive  rights  in  proportion  to  the number of shares hold. The

payment  is  in cash.  After the increase the share capital will be LVL

17,476,033.

The  subscription  opens  the  next day after the issue rules have been

registered  with  the  Company  Register  of the Republic of Latvia and

closes  31  days later. Shareholders may subscribe to the new shares at

Company  secretariat  93 Brīvības Street, Liepāja, from 9:00 till 15:00

on  business days. The present shareholders shall pay the nominal value

plus LVL 0.013 premium per share upon subscription.

The  share capital increase shall be registered at the Company Register

within  2  weeks  after  the  resolution of the meeting and approval of

these  rules.  In case the new issue is not fully subscribed within the

specified  time  period, it will be regarded valid to at the subscribed

amount.  The  new shares are entitled to dividends from the moment they

are paid in.