Fulfilling the RSE information disclosure request of February 18, 2004,

"Kaija" has provided the following answers to the questions:

1.  When  and  to  whom  did  "Kaija"  sell its property; what were the

auction  rules  and  start  price?  In  what  way  were  the rules made

available?

The property was sold by bank "Latvijas Krājbanka", to whom "Kaija" had

pledged it as a collateral for loan, in December of 2003, at book value

and without any auction, to company "JS īpašumi" (reg. No.000364434).

2.  Was the valuation of the property carried out prior to selling? Who

were the valuators? Please provide the valuation results.

Yes, the property was valuated by  SIA "Vindeks" (reg. No.40003562948)

3. Has the buyer paid for the purchase yet? When and in what manner?

Pursuant  to the provisions of Agreement, the buyer transfers the money

for the purchase to "Latvijas Krājbanka" account:

1.       LVL  880,818  - to cover the liability to "Latvijas Krājbanka"

(pursuant to the loan agreement). Payment transferred.

2.       LVL  77,182  -  costs associated with the property - technical

inspection,  property  tax,  public  utilities  costs, wages to "Kaija"

employees. Payment transferred.

3.       LVL  115,000 to pay off the liabilities to creditors, pursuant

to the court verdict. Payment transferred.

4.       LVL  40,000  - costs associated with the deal - signing of the

purchase  agreement, certifying, registration at the Land Book. Payment

transferred.

5.       LVL  500,000  -  to be transferred to JSC "Kaija" account with

"Parekss  banka",  and  to be used to pay for the supplies etc. Payment

term - is being paid.

4. Who is the buyer? If a legal entity, owned by whom?

Legal  entity  "JS  īpašumi"  (reg. No. 000364434, Pulkveža Brieža iela

8-1,  Riga,  LV-1010),  executive  director and owner Jānis Smagars. In

December   of   2003  the  property  was  further  transferred  to  "IP

Vecmīlgrāvis"  (reg.  No.000364326,  Pulkveža  Brieža  iela  8-1, Riga,

LV-1010), represented by executive director Oskars Punenovs. Owners are

Raivo  Kallions  and company "Atlantijas monitoringa serviss" (reg. No.

000364317,  Atlantijas  iela  15,  Riga,  LV-1015), owner and executive

director is Oskars Punenovs.

5.   What  is/was  the  legal  relationship  between  "Kaija",  or  its

officials, with the property buyer - either a natural person or a legal

entity?

There is no legal relationship between "Kaija" or its officials and the

new owner.

6.  Does  "Kaija"  own  any other property right now? What is its legal

status?

a. land at Atlantijas iela 7, Riga, cadaster No.0100 11 0747.

b. land at Atlantijas iela, Riga, cadaster No.0100 111 0880

7.  Please  specify  the  "investor"  who is ready to invest in "Kaija"

production  facilities;  in what way will it be done? What is the legal

relationship  between  "Kaija"  and  the  investor?  Please provide the

documents certifying the commitments.

"Kaija"  is  negotiating with different investors who are interested to

invest  in  the  production  unit.  It  is not possible to disclose the

names, because any agreements that have been reached are not in writing

and are confidential.

8.   Please   provide  the  conditions  of  production  facility  lease

agreement, and the rent amount.

1)     rent not higher than LVL 0.50 per sq.m

2)     no termination date.

9. What are the conditions for SAPARD project implementation?

On  February  13,  2004  "Kaija" signed an agreement with Rural Support

Service  of  the  Ministry  of  Agriculture regarding implementation of

SAPARD for the project "Purchase of new equipment for JSC "Kaija"".

Key terms and conditions:

a)       "Kaija"  buys and installs new equipment with its own money at

total amount LVL 2,599, 872

b)       the  project  may  be  implemented  in  three  phases, between

February 13 and August 31 2004;

c)       After  the  equipment  has been installed, 50% of the invested

money are paid back to "Kaija" from SAPARD

unds.



A/s "Kaija"

Inese Trusina

Ph.:7029292