JSC "Latvijas kuģniecība" today announced its financial results for the

first  half  of  2003. LASCO Group profit before tax for the six months

ended June 30, 2003

reached $ 19.9 million, which is an increase of $ 15.5 million compared

to  the  respective  period in 2002. The growth of the Group profit was

facilitated mainly by

the  performance  of  its Tanker Fleet, which reported vessel operating

profit of $ 21.5 million. The total vessel operating profit reported by

the Company is $ 25.1

million,  which  is an increase of $ 14.9 million compared to the prior

year's six-month results.

"The  improved  Tanker  Fleet's performance was the main reason for the

improvement  of  LASCO Group total financial results as compared to the

respective period

in  the  previous  year. Being by $ 12.5 million higher than last year,

Tanker  Fleet  vessel  operating profit for the first six month of 2003

made up $ 21.5 million.

Improvement  was  reported  also  by the Reefer and LPG fleet, although

their  vessel  operating  profit was lower than budgeted. The deviation

from the budget was

caused  mainly by an early closing of high season in the reefer market,

as  well as by slightly lower freight rates for LPG carriers", informed

Imants Vikmanis, LASCO

President.

Also  structural changes made in the Company contributed to the overall

improvement  of  LASCO Group financial results by enabling the Group to

decrease its

administration expenses by $ 0.9 million compared to 2002.

A rise in the average freight rates for LASCO Group product tankers was

registered  in  the first six months of 2003 compared to the respective

period in 2002.

However,  at  present  the rates have dropped back to the level of last

year  and  continue  decreasing.  Upon  the  end  of ice navigation and

settlement of the Iraq conflict

the  activity  slowdown  was  registered  in  the  market,  which had a

negative impact on the demand for the LASCO vessels.

"On the whole LASCO Group financial results for 2003 will be materially

affected  by  further  slide down of freight rates in the tanker market

and the restriction by

the  EU  on the employment of single hull vessels for dirty oil product

transportation,  expected  to  be  imposed  at  the  end of September",

believes Imants Vikmanis,

LASCO President.

As of June 30, 2003 LASCO Group fleet consisted of 50 vessels, of which

35 are product tankers.