Pursuant   to   the   provisions   of   Item  3.6  of  the  Charter  of

'Salacgrīva-95',  Management  Board passed a resolution on December 19,

1997  with  regard  to increase of a/s 'Salacgrīva-95' share capital by

158,071  Ls  with  the method of raising additional capital, through an

investment  in kind and capitalisation of debt. Company Register of the

Republic of Latvia shall be advised on the third closed share issue.

Pursuant  to  the  share  issue rules, a/s 'Ave Lat Grupa', the control

interest  holder,  subscribed  to  the  third  closed  share  issue, by

investing  the real estate in its property in a/s 'Salacgrīva-95' share

capital, by raising additional capital and by capitalisation of debt.

After  registration  at the Company Register of the Republic of Latvia,

a/s 'Salacgrīva-95' subscribed and paid in capital shall be 685,000 Ls.