LIFOSA

MATERIAL EVENT



BASIC PROVISIONS OF THE PLAN OF RESTRUCTURISATION



The basic provisions of the restructurisation plan of Lifosa AB are

the following:

1. A new shareholder, supplier of raw materials ensures a 100% provision

with raw materials.

2. A long term agreement has been concluded regarding supply of raw materials,

where the price of apatit is established on the basis of the price of the

product (DAP).

3. A long term distribution agreement has been signed with the US company

Cargill, under which the company pledges itself to purchase all produce of

Lifosa.

4. The company’s debts are being restructured until the end of 2005.

5. The Jevrochim’s company Eolian Trading granted a subordinated loan of USD

5 million to Lifosa AB for restoring the working assets and for partial

payment of restructured debts.





M. Gedvilas

Finance Director

8 (347) 66 595