Today,  on  July  30, the Annual General Meeting of Ventspils Nafta has

considered  all  items  included  into  the  agenda  of the Meeting, by

passing the resolutions concerning annual report of Ventspils Nafta for

2003;  profit division of Ventspils Nafta for 2003; budget and business

plan  of  Ventspils Nafta for 2004; release from liability of the board

members  of  Ventspils  Nafta  for  the activities in 2003; approval of

revised  version  of  Ventspils  Nafta's charter; Ventspils Nafta board

members;   inclusion  of  Ventspils  Nafta  into  commercial  register;

conversion  of  Ventspils  Nafta shares; election of a sworn auditor of

Ventspils Nafta for 2004.



The  Annual General Meeting has approved the annual report of Ventspils

Nafta  for  2003  as  well  as  the  consolidated report for 2003. Both

reports  are prepared in accordance with the international book-keeping

standards,  according  to  the  legislation  of the Republic of Latvia,

including widely accepted book-keeping principles.



The  net turnover of Ventspils Nafta in 2003 reached 55.4 million lats.

Taking  into  account the external factor circumstances that influenced

the  activities of the transit business companies of Ventspils Nafta in

2003  it  was planned when preparing the budget of 2003 that net losses

of  Ventspils  Nafta  in  2003  would  make  9.4  million lats.  Having

considered   the   profit   division   of  Ventspils  Nafta  for  2003,

shareholders resolved that losses will be written off from the reserves

accumulated by income of Ventspils Nafta during previous years.



In  accordance with the budget and business plan of Ventspils Nafta for

2004 as approved by AGM the operation income of Ventspils Nafta in this

year has been planned in the amount of not less than 55.5 million lats,

including  parent  company's  income  of  21.6  lats.  According to the

forecast  for  2004  Ventspils  Nafta's income shall reach 176 thousand

lats,  however, already now the preliminary results show that Ventspils

Nafta's  income in the first half of the year significantly exceeds the

income's  forecast,  because  a  potential  income  for the period from

January to June 2004 is 1.2 million lats.



The  economic  results  of the activities of Ventspils Nafta holding in

the  first  half  of  the year showed the stability of Ventspils Nafta,

confirming  therefore  the  rightness of policy on Ventspils Nafta risk

diversification,  as well as the return on investments into the spheres

of  Ventspils Nafta activities other than transit business. In 2004 all

companies  of  the  Ventspils  Nafta  holding  have  continued  to work

actively  and  each of them has resulted in contributing into the total

prosperity and development of the holding, including the improvement of

the  results  of  commercial and financial activities. Ventspils Nafta,

like  in  previous  years,  will  be  analysing  the  possibilities  of

investing  purposefully  and  profitably into new business spheres that

correspond with the interests of Ventspils Nafta' shareholders.



The  Annual  General Meeting has resolved to release from liability for

the  activities  in  2003  the  former board members of Ventspils Nafta

Jānis   Ādamsons,   Ritvars   Priekalns,  Rolands  Kalniņš,  Aleksandrs

Antipins,  Renārs  Urbanovičs,  as  well  as the existing board members

Aldis Āķis un Ilva Purēna.



The  Annual  General  Meeting has approved the new version of Ventspils

Nafta's  charter that has been revised according to the requirements of

the  commercial law. The Meeting has also resolved to include Ventspils

Nafta  into  the  commercial  register, as well as to convert Ventspils

Nafta shares.



The revised version of Ventspils Nafta charter stipulates that from now

on the board of Ventspils Nafta shall have four members instead of five

and  the  Meeting  has resolved to accept that the work of the board of

Ventspils Nafta shall be continued by four board members.



AGM  has resolved that 300,000 common shares shall be converted without

voting  rights into 300,000 bearer shares in a dematerialized form that

provide  their  owner  with voting rights at annual general meeting, as

well  as  the  rights  to receive dividends and liquidation quotes. The

300,000  shares above upon the resolution of AGM shall be included into

the  regulated  market  as  these shares are the previously existing so

called  board  reserve shares that according to the requirements of the

law  On Joint Stock Companies each member of the board had been obliged

to  acquire.  Since  in accordance with the new norms of the commercial

law such board reserve shares are not required anymore, Ventspils Nafta

had to resolve on converting the former board reserve shares.



According  to  the  norms  of  the  commercial  law the shareholders of

Ventspils Nafta have resolved that 60,298,121 common shares with voting

rights   shall   be  converted  into  60,298,121  bearer  shares  in  a

dematerialized  form  that  provide  their  owner with voting rights at

annual  general meeting, as well as the rights to receive dividends and

liquidation quotes.



AGM  has elected the sworn auditor Diāna Krišjāne to be the auditor for

the  annual  report of Ventspils Nafta for 2004 and consolidated report

for 2004 as well as resolved to conclude an agreement with the auditing

company Ernst & Young Baltic SIA.



For further information:

Gundega Varpa

Ph.: 7229182