There  information appearing in mass media that "Latvijas kuģniecība"

is considering selling most of its vessel pool is not true.

Currently  the  Company  management  has  approved  the  Group business

guidelines  for  the  second  half  of 2002, which envisage disposal of

seven  refrigerator  ships  and  selling  one of the oldest tankers "Ž.

Diklo"  to  scrap.  The  unsatisfactory  returns  and weak outlooks for

refrigerator  business,  as  well  as  the  excessive  and economically

unjustified repair costs required by tanker "Ž. Diklo" have lead to the

above decision.

 It  is  also  planned to assess the further exploitation prospects for

"Pablo Neruda" type vessels from the market demand aspect.

These  actions  are a part of a set of activities with the objective to

proceed  with upgrading of the obsolete tanker fleet, which is critical

for  "Latvijas  kuģniecība"  in  order  to  remain  competitive  in the

international market.