Information on foundation of JSC "Ventspils nafta" daughter company SIA

"Rīgas līcis VN"

·  SIA  "Rīgas  līcis VN" Charter was approved by JSC "Ventspils nafta"

Management  Board  on  November 19, 2001; the company was registered on

December 4, 2001;

·  SIA  "Rīgas  līcis  VN" share capital is LVL 50,000, built of 50,000

shares, nominal value of a share is LVL 1;

·  JSC  "Ventspils  nafta" will own 50,000 shares or 100% of SIA "Rīgas

līcis VN";

·  The  new  company was founded with the purpose to manage real estate

and  movables  acquired by JSC "Ventspils nafta" on September 18, 2001,

as  a  result of LVL 2.3 million bid at auction. The acquisition is the

former  health  centre  "Rīgas līcis", located at 51 Dubultu prospekts,

Jūrmala;

·  SIA  "Rīgas līcis VN" financial statements will be consolidated with

JSC "Ventspils nafta" financial statements starting with 2001;

·  SIA  "Rīgas  līcis  VN" operations is expected to leave a negligible

impact on JSC "Ventspils nafta" financial performance for the year;

·  The  economic rationale behind foundation of the daughter company is

to  diversify  the  risks  generated  by  JSC  "Ventspils  nafta"  core

business, and to earn profits in other businesses;

· SIA "Rīgas līcis VN" address is 51 Dubultu prospekts, Jūrmala;

·  SIA  "Rīgas  līcis  VN" core business is hotel services, health care

services,   real   estate   management,   sporting   and  entertainment

activities;

·  SIA  "Rīgas  līcis VN" Management Board: Jānis Ādamsons (Chairman of

the   Board),   Andis   Paļeļunas,  Ilze  Ozola,  Gints  Ozols,  Renārs

Urbanovičs; Director - Andis Paļeļunas.