LIFOSA

MATERIAL EVENT



OPERATING RESULTS FOR THE NINE MONTHS OF 2003



(Unofficial translation done at the NSEL)



During the nine months of 2003 the revenue of Lifosa AB amounted to LTL 324,928

thousand, 26 % up on the corresponding period last year. The growth of revenue

was a result of the increased sales volume and a higher price of the Company’s

main product, diammonium phosphate. Revenue from sales in litas has suffered a

negative effect due to a fall of the dollar rate relative to the litas.



Since the beginning of the year, EBITDA (earnings before interest, taxes,

depreciation and amortization) has been LTL 10,893 thousand, which is an

indication of the Company’s ability to cover interest and pay back the loans in

its minimum investment activities. Better performance results were hindered by

the increased prices of the main raw materials.



During the nine months of the current year, the enterprise produced 563.3

thousand tonnes of fertilizers of diammonium phosphate, which is by  25.3 %

more than during the corresponding period last year. Moreover, it has been the

largest output of phosphates during a period of nine months since the

establishment of the enterprise. Today the market of phosphates is on the rise,

therefore, the Company has no difficulty in selling the production, while a

steady supply of the main raw materials, apatite and ammonia, from the

subsidiaries of the concern Eurochem ensures for Lifosa AB steady operation at

full capacity and ability to carry on restructuring of the plant.





Regvita Ivanovienė

Director of Finance

(+370-347) 66331