Share buyout offer



1. Target company 



Public  joint  stock  company  "Latvijas Gāze", registered on March 22,

1991  at Enterprise Register of the Republic of Latvia, registration No

000300064,  legal  address  A.Briāna  iela  6, Riga, LV-1001, phone 371

7369132,  fax  371  7821406,  e-mail:  latvijas.gaze@lg.lv (hereinafter

"target company") 



2.Offerer 



Ministry  of Economy of the Republic of Latvia, Brīvības iela 55, Riga,

LV-1519,  phone  371  7013101,  fax 371 7280882 e-mail: pasts@em.gov.lv

(hereinafter "offerer")



3.Type of offer 



Mandatory  buyout  offer  is  announced  pursuant  to the provisions of

Article  65  part  1  of  the  law  "On Securities", 651 and Item 10 of

Transitional Provisions.



4.Securities code 



LV0000100899



5. Number of shares offered 



Pursuant  to  the terms and conditions of the Agreement signed on April

2,  1997  between  "E.ON  Energie  AG",  "Rurghas  Aktiengesellschaft",

"Gazprom"   and  "Privatizācijas  aģentūra"  (hereinafter  "shareholder

agreement"),  and the information from "Itera-Latvija" that the company

does  not  intend  to  express  the  mandatory  share buyout offer, the

maximum number to be bought out by the Offerer is 5 shares.



6. Buyout price 



Target company share buyout price is LVL 5.50.



7. Payment and settlement procedure and terms 



7.1 Payment for shares will be made within five business days after the

end date specified in Item 8;



7.2  In  case  the  number  of shares in sell orders exceeds the number

specified  in  Item 5, the Offerer shall accept the bids in  proportion

to the number of shares bid.



7.3  the  Offerer shall summarize the bids and submit the data to State

Treasury  for  execution.  State  Treasury  shall  submit  the order to

"Parekss  banka"  for  execution,  following  delivery  versus  payment

principle.



7.4  The  bidders of the target company shares interested in responding

to the buyout offer may inspect the offer text on the Offerer's website

<a href='http://www.em.gov.lv,' target='_blank'>http://www.em.gov.lv,</a>  Riga  Stock  Exchange  website  <a href='http://www.rfb.lv,' target='_blank'>http://www.rfb.lv,</a> Ministry of

Economy Brīvības 55, contact person Kaspars Lore, phone 7013019, e-mail

Kaspars.Lore@em.gov.lv.



8. Validity of the offer 



The  offer  is  valid  for  four weeks starting with publication of the

offer   in  the  official  newspaper  "Latvijas  Vēstnesis"  (identical

notification will appear in the newspaper "Rīgas Balss").



9. Accepting procedure for the target company shareholders 



The  shareholders  willing  to  respond  to the buyout offer may submit

their  bids via the bank or brokerage company where the shareholder has

the  share account opened, by 17:00 of the day specified in Item 8. The

bids will be forwarded to Ministry of Economy.



10. The intentions of the offerer with regard to takeover of the target

company, its business in future, management and employees 



The  Offerer  is  acting  in order to comply with the provisions of the

law  "On  Securities".  The  Target  company  will  continue to operate

according   to  its  Charter,  and  no  changes  are  expected  in  the

management.  The employees of the target company will retain their jobs

according to their employment agreements.



11. Other information 



Offerer  shall,  within  2  business days after the expiry of the offer

deadline, submit to the Financial and Capital Market Commission and the

Target  company  a  report  on the results of the offer, specifying the

following information:



- target company and Offerer's banking details;



- number of shares bid;



-  number  of  shares  held  by  the Offerer after the execution of the

order.