JSC  "Latvijas kuģniecība" has started preparing the documentation for

transferring  the  title  to  reefer "Akadēmiķis Hohlovs" to "Cloudfree

Enterprises Ltd.". The deal is expected to be finalised by September 6,

2002.

"Cloudfree  Enterprises  Ltd." has fulfilled all the payments as a part

of  the  charter  lease  with buy-out option Agreement, and it does not

have  any  liabilities  left  to LASCO. The Agreement between LASCO and

"Cloudfree Enterprises Ltd." was signed in 2000.