JSC  "Latvijas  Balzams"  sales  in  the  first  quarter  of this year

amounted  to  LVL 9.8 million, which is by 0.7 million less than in the

respective period of 2002.

The  share of low-alcohol beverages has been increasing compared to the

last  year.  This  tells  on  sales, since low-alcohol beverages have a

smaller  excise tax than hard drinks. The restrictions on alcohol trade

during nighttime are telling on company sales as well. As a result, the

growth  rate  of  the  share  of low-alcohol beverages in total alcohol

consumption has been decreasing in the country.

Company net profit in the first three months of 2003 is LVL 37 000. The

profit  is  small  due  to  a number of voluminous investment projects,

including  a  new  low-alcohol  beverages  production  unit at A.Briana

street,  to  be  accomplished  in  the  second quarter of 2003. Company

profit  in  the respective period of the previous year was LVL 375 000.

It  is  expected  that  the  company  sales will increase to LVL 48.264

million  this  year, whereas the profit will not be that high as in the

previous  year  -  LVL  2.016  million.  The increase in sales has been

planned  also taking into account the market price effect on profit and

sales figures.