Hereby JSC Latvian Shipping Company (LSC) informs that pursuant to LSC

Management  Board  decision,  approved  by  the  Company's  Supervisory

Council, tanker Janis Sudrabkalns was sold for scrap on March 4, 2003.

Considering the 24-year-old vessel's technical condition, as well as EU

phase-out  programme  for  single-hull  tankers  and  age restrictions,

expected to be imposed in June 2003, further capital investments in the

repair   and   maintenance   of   Janis  Sudrabkalns  would  have  been

economically unsound.

LSC  Management  Board  decision  on  sale of m/t Janis Sudrabkalns was

approved by LSC Supervisory Council on March 5, 2003.

At  present LSC Group's fleet consists of 35 product tankers, 13 reefer

vessels, 1 Ro-Ro/general cargo vessel and 2 LPG carriers.

Cloudfree  Enterprises Ltd. has made all the payments stipulated by the

Bareboat  Charter  Agreement and has no outstanding liabilities to LSC.

Bareboat  Charter  Agreement  with  purchase option for m/v "Akadēmiķis

Hohlovs" was signed in 2000.