JSC  Latvian  Shipping  Company  (LSC)  hereby  informs  that there are

negotiations  taking  place  with potential buyers of tankers Taganroga

and  Razna  regarding  conclusion  of  bareboat charters with sales and

purchase option.

Due  to  arrest  in  France both tankers were off service for more than

seven  years.  There  is need for major investment to ensure compliance

with technical requirements of classification societies and oil majors,

but  such investment is not economically justified given specifications

of vessels.

Tankers  Razna  and  Taganroga  were  released from arrest in France on

October  2,  2002  upon  completion  of  litigation related to Stocznia

Gdanska case. Both ships were arrested in April, 1995.

Latvian Shipping Company

Phone: +371 7020120

Fax: +371 7820239

e-mail : ozolina@lsc.riga