A/s  'Grindeks'  384,153 common registered shares shall be auctioned on

January

16, 1998.

Orders  shall  be  accepted  by  the  Riga Stock Exchange from 17:00 on

January 15,

1998, till 10:00

on  January  16, 1998. The orders shall be submitted in compliance with

the  rules  for  special quotation described in the Riga Stock Exchange

Enforcement  Note  on  Trading and Quotation. A/s 'Grindeks' securities

code is LV00001000659.

Specific rules for the auction:

1. buy orders only shall be accepted;

2. minimum share price is Ls 2.70;

3. orders 'at market price' shall not be admitted;

4. additional orders shall not be admitted;

5. the orders shall be valid for the respective trading session only.

The Riga Stock Exchange shall calculate:

1. market price of a share in lats, with a precision to one santim;

2. number of shares allocated to a bidder.

The  bids where the specified price is above the auction price shall be

executed  in  full.  The  bids  where  the  specified price is equal to

auction  price  may be executed partly, applying allocation coefficient

Ka. The coefficient is calculated by the formula:

Ka (A-B)/A (%), where:

A  -  number  of  securities in buy orders where the specified price is

equal to auction price;

B - difference between A and the remaining number securities at auction

price.

Settlement date for the transactions shall be January 21, 1998.

If  the  shares have not been sold in entirety, the auction may be held

repeatedly  with  the  objective  to  sell  the  remaining  shares. The

resolution with regard to conducting a repeated auction shall be passed

by the Privatisation Agency.