JSC   "Balta"   informs  that  its  shareholders  "Development  Capital

Corporation  (Latvia)",  "Vista Capital Corporation LLC", JSC "Bastions

ZS"  and  "Sampo  Enterprise  insurance company limited", a Sampo Group

company,  have  cancelled  the operation of Letter of Intent, signed by

the above Balta shareholders on December 30, 1999.

The  purpose  of  the  Letter  of Intent  was to result in an agreement

which  would  provide  a  transfer  of 72.4% of Balta shares, presently

owned by Bastions ZS, Development Capital Corporation and Vista Capital

Corporation,  to  Sampo Enterprise Insurance Company Limited. Presently

Sampo owns 14.8% of Balta shares.