LIFOSA

MATERIAL EVENT



ADOPTED DECISIONS OF A GENERAL SHAREHOLDERS’ MEETING



On 31 August 2000, a general meeting of AB Lifosa shareholders took place.

1) Danas Tvarijonavičius, Jonas Dastikas, Albertas Surma, Raimondas G. Kriūnas,

   Henk. M. Mathot, Aryan van den Blink, and Piere Sicouri were elected members

   of the Board for a two-year cadency;

2) It was decided to take a USD 60m loan from the EBRD and to authorise the

   Board to coordinate the terms for receiving the loan and to conclude all the

   contracts necessary for receiving of a loan;

3) It was decided to ensure the redemption of a USD 60m loan and to mortgage to

   the EBRD all tangible and intangible property and rights under the contracts

   required for the project execution. It was also decided to authorise the

   Board to prepare and conclude agreements of property mortgage;

4) Due to establishment of a new classificator of business activities, new

   wording of business activities stated in the Articles of Association were

   approved.





J. Baniota

Finance Director

(257) 66410