Latvijas Gaze                                  07.12.2004.



JSC “Latvijas Gaze” comments on information published in mass media



JSC “Latvijas Gaze” informs that for the  budget of the year 2005

natural gas  purchase expenses were calculated  at  the  heavy fuel oil

quotation 170 USD/t BARGES  FOB ARA, which means increase in natural gas

purchase expenses by 16% for 1000 m3in comparison to the gas purchase

expenses at the moment.

Long-term  development  program  of  JSC “Latvijas Gaze” provides that

during the period 2005 to 2010 capital investments will amount to LVL 119.1

mio,which willbe concretized by adopting budget each year.

Forecast for the results of operating activity in 2004 reveals that net

profit of the company in 2004 would reach LVL 17 mio. Actual result might

deviate  substantially  since it will depend  on the actual gas sales in

December 2004. Main  sources of the additional profit of JSC “Latvijas

Gaze”for 2004 are over-fulfilment of natural gas sales plan and decrease of

LVL/USD exchange in comparison with the budgeted for 2004.