A/s  KAIJA  net profit for the first three months of the year is 9,487,

though  a  loss of Ls 10,000 was budgeted for the first quarter. Profit

before  extraordinary  items  and  tax was Ls 104,054. It is planned to

earn  the  largest  share  of  profit  during  the  summer months, when

traditionally an increase of sales volumes is expected.

A/s  KAIJA  turnover  is  Ls  4,114,339,  which is by 24% less than the

budgeted one.

In  1997 an agreement was signed between a/s KAIJA and a/s SALACGRĪVA -

95

regarding  sales  of the produce of the latter. During the first months

of  the  year there was a fierce price competition in the market, which

was  adverse  to a/s SALACGRĪVA`95 produce. February sales were notably

behind  the  target,  therefore a resolution was taken to terminate the

former  agreement.  In  March  a/s  KAIJA  sales  were according to the

schedule.

During  the  first  three  months  of  the year there have not been any

significant  changes in a/s KAIJA export markets. Long-term cooperation

with  wholesalers  in  Russia  continues  with regard to negotiation of

sales volumes and prices.

In  compliance  with  the  marketing plan for 1998, market research was

carried  out in Hungary, Czech Republic, Slovakia; a new product design

has been worked out;

advertising campaigns have been launched in the domestic market.

A full report is available from

<a href='http://www.rfb.lv/other/listing/reports/kaij.xls' target='_blank'>http://www.rfb.lv/other/listing/reports/kaij.xls</a>