Riga  Stock Exchange has received a notification from the Financial and

Capital  Market  Commission  advising  on the approval of the mandatory

buyout offer to S.P.I. Distilleries B.V.  (the Netherlands) with regard

to "Latvijas Balzams" shares.

Share buyout offer 

1. Target company 

Public  joint stock company "Latvijas Balzams", registration #000303187

on  October  2  1991 at  Enterprise Register of the Republic of Latvia,

legal address 160 A.Čaka Street, LV - 1012, Latvia.

2. Offerer 

S.P.I  Distilleries  B.V. is a limited liability company registered and

operating  under  the  Netherlands'  jurisdiction.  It is registered on

December 30¸ 2002 at Haaglanden Commercial and Industrial Register with

number  27255571¸  and  its  legal  address  is Martinus Nijhofflaan 2¸

2624ES Delft¸  the Netherlands. Phone 31 015 2569251.

3. Type of offer 

Mandatory  buy-back  offer pursuant  to the provisions of Article 65 of

the  law "On Securities" and Item 1.3.1 of the FCMC resolution #17/5 of

November 2, 2001 "Regulations on buyout of shares".

4. Securities code 

ISIN code LV0000100808

5. Buyout price 

S.P.I.  Distilleries  B.V.  offers to buy out the target company shares

at  LVL 1.56 per share.

6. Payment and settlement procedure and terms 

S.P.I.  Distilleries  B.V. will issue a buyout instruction to "Latvijas

Balzams"  ,  to  be forwarded to the Riga Stock Exchange for execution.

All  the sell orders will be accepted by the deadline specified in Item

7  of this offer. Payment will be transferred within five business days

after  the  offer  validity  deadline,  on the basis of Delivery Versus

Payment principle.

7. Validity of the offer 

The  offer  is valid for thirty calendar days starting with publication

of the offer in the official newspaper "Latvijas Vēstnesis".

8. Accepting procedure for the target company shareholders 

The  shareholders  willing to respond to the buyout offer shall deliver

their  sell orders to the Riga Stock Exchange via a bank or a brokerage

company  within the offer validity term and according the RSE Rules and

Regulations. The offer document is available for inspection at the Riga

Stock  Exchange  on business days during office hours as well as on the

RSE website <a href='http://www.rfb.lv.' target='_blank'>http://www.rfb.lv.</a>

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

company, its business in future, management and employees 

S.P.I.  Distilleries  B.V., by obtaining control interest in the target

company,  intends to continue the production in the target company with

the purpose to enhance the growth of profitability as well as to attain

a  high  return on capital and assets. S.P.I. Distilleries B.V. dos not

intend   any   organisational  changes  regarding  the  target  company

management and employees.

Juris Gulbis

Authorised representative of S.P.I. Distilleries B.V.