On  May  26, 1998 the management board of JSC Kaija has made a decision

to  increase  the share capital of the company by issuing 37 966 shares

(0.78  %)  with  a nominal value Ls1 in a closed issue. On July 1, 1998

the  regulations  of  this issue have been registered in the Enterprise

register  of  Latvia.  The  management board has decided to offer these

shares to the holder of previous closed issue shares, Ave Lat Grupa.

JSC Kaija capital after this closed issue will be Ls 4 840 000.

The  increase  of  the  capital is stipulated by the regulations of the

Privatization    Agency   concerning   the   investments   during   the

privatization period.