On  February  28,  2001 in Copenhagen, Danish Insurance Company "Codan"

and 2

majority  shareholders of JSC "Balta" - USA Investment Fund New Century

Holding  and  JSC  "Bastions  ZS"  - have signed JSC "Balta" share sale

agreement. As a result of this deal Codan will become owner of 73,5% of

JSC "Balta" shares.

Danish  Insurance  Company  Codan  is  participant of British Insurance

Group  Royal&Sun  Alliance. The Groups signed premiums a year amount to

7200 million British pounds.

Insurance  JSC  "Balta"  shares  were  sold  at  a price of LVL 4,5 per

shares, total amount of the deal is LVL 15 million.

Agreement  contains  preconditions that have to be fulfilled by June 1,

2001.

Afterwards offer will be made to remaining shareholders at LVL 4,50 per

share.

Insurance  JSC  "Balta"  owns 99% of JSC "Latva" and 100% of JSC "Rigas

Apdrosinasanas sabiedriba".

More   information   regarding  deal  will  be  released  during  press

conference  on  March  2,  2001  in  Hotel Radisson SAS conference Hall

Lielupe at 10.30 AM. There will be representatives from JSC "Balta" and

JSC "Codan" management.