Riga Stock Exchange                                                                 15.04.2005



JSC “Rīgas raugs” comments on the acquisition of „Nordic Yeast Eesti”



The acquisition deal of „Nordic Yeast Eesti” was closed on December 30, 2003. The objective was 

to increase and consolidate RR market share in the Baltic market. Owing to this acquisition, 

“Rīgas Raugs” has won a part of the Estonian  market, has established contacts with clients, has 

gained the potential of market increase. 

As a result of the acquisition:

1)	the planned daughter company’s profit to be made in 2004 was attained:

2)	Export to Estonia increased by 204%f over the 2003 figure.

3)	RR profit increased if compared to 2003.

Considering the above listed benefits and the fact that shareholders N. Sinkēvičs and K. 

Ieviņš-Brambis received a detailed information on the acquisition and the reasons during the EGM 

of December 17, 2004, and that the acquisition is not a material investment in the understanding 

of the RSE rules (the acquisition value was only 6% of the RR equity), we believe the claim by 

N. Sinkēvičs and K. Ieviņš-Brambis unjustified.