LIFOSA

MATERIAL EVENT



2002 OPERATION RESULTS



(Unofficial translation done at the NSEL)





Exceeding the requirements stipulated in the restructuring plan, in 2002 Lifosa

AB sold its main product, DAP fertilizers, for LTL 656 thousand. The figure is

twice as high as in 2001, when sales amounted to LTL 338 thousand. Production

and sales growth has been stimulated by a guaranteed supply of the raw material

(apatite concentrate and ammonium) from enterprises owned by Lifosa AB

shareholders (Eurochem).



Sales of the new product, dicalcium phosphate, also increased notably (from 3.6

thousand tons to 10.3 thousand tons). Taking into account the fact that feeding

additives have a far greater added value, Lifosa AB plans to further boost

sales of these products.

Income of the company grew by 62 %, from LTL 237 million in 2001 to LTL 385

million in 2002. The dollar decline reduced Litas denominated Lifosa income,

though this did not affect negatively the company’s activity as purchases of

nearly all raw materials are settled in dollars. An average sales price of DAP

went up from 138 to  143 USD not reaching yet the price forecasted in the

restructuring plan, which does not have adverse effects on the implementation

of the plan.



Amounts of outstanding debts and accrued interest due to creditors were paid

off within the terms established in the restructuring plan.



The financial results for 2002 are currently under a final revision and will be

announced upon receiving the auditor’s statement.





Mindaugas Gedvilas

Finance Director

(370 347) 66 595