S.P.I   Distilleries   B.V.  has  announced the mandatory buyout offer

regarding all

JSC  "Latvijas  balzams"  public  shares  pursuant to the provisions of

Article 65 of

the   law   "On Securities" and FCMC "Regulations on buyout of shares".

Responding

to the offer is the decision of each individual shareholder.

Each   shareholder may take an independent decision whether to sell the

shares or

to   hold  them, depending on the pursued investment strategy and after

assessing

"Latvijas   balzams"   business   performance,   dividend  policy,  the

results  of

fundamental  and  technical  analysis as well as any other factors that

may have an

effect  on  the  share price, by applying a variety of models for share

valuation.

In  case the investor has decided to decline the mandatory buyout offer

by S.P.I

Distilleries   B.V.,   his/her  status as a shareholder does not change

and he/she

may   exercise   all  the  rights  of  a  shareholder  pursuant  to the

provisions of the

law "On Joint Stock Companies" and any other legal acts.

When   announcing   the  buyout offer, S.P.I Distilleries B.V. declared

that "after

obtaining   control  interest  in  the  company,  we  are  planning  to

continue

developing   the  production  in the target company with the purpose to

enhance a

sustainable  growth  of  profitability and a high return on capital and

assets".

The   major   shareholder  is  not  planning any organisational changes

regarding the

target company management and employees.

"Latvijas  balzams"  management  believes  that control interest in the

hands of one

company   will  streamline  the  decision taking process, thus allowing

a quicker

solution   of   all  business  issues  and  enhancing  the development.

General meeting

of  shareholders  on April 4, 2003 has already approved the operational

plan and

budget   for   this  year.  Also  the  investment  plan approved by the

shareholders is

an evidence of a balanced and purposeful development of the company.

Juris Gulbis,

Chairman of Management Board