JSC Latvijas balzams net turnover in first 6 month of 2002 reached LVL

23  460  thousand,  sales  in domestic market were LVL 21 052 thousand,

export - LVL 2 408 thousand.

JSC  Latvijas  balzams  net  profit  in  6  month of 2002 was LVL 1 365

thousand  by  1  157 thousand more than during same period of last year

and by more than LVL 661 than forecasted for 6 month of 2002.

At  the  beginning  of  this  year  JSC  Latvijas  balzams employed 500

workers.  Due  to large large export order company worked uninterrupted

working  cycle.  More  than  200  additional  positions  were  created.

Presently JSC Latvijas balzams has 700 workers.

In  addition  to certification for production and quality management of

champagne  and  sparkling  wines  production  to  ISO  9000:2001 strong

liqueur production was certified.

Company development and future outlook

In  2002  JSC Latvijas balzams plans investments in the amount of LVL 5

137  million.  That  includes  more  than  LVL  2  million  to increase

production  capacity, LVL 1.57 million - to increase warehouse capacity

and LVL 828 thousand to increase filling power.

JSC  Latvijas  balzams  AGM  budgeted increase of net turnover by 3.2%,

profit by 16.2% compare to last year. Total net turnover is budgeted at

LVL 49 874 thousand, profit - LVL 2 081 thousand.

Due  to  large export order company revenues from export could increase

by 4.4 million and reach LVL 6.88 million.

ISO  9000:2001 certification will be completed in 2003. Main production

sectors  are  certified to ISO standards. At the end of 2003 production

sectors  of  alcoholic  cocktails and wine will be certified. Therefore

JSC  Latvijas  balzams  will  complete full certification by the end of

2003.

Work  on  building  of  distillery has begun. Presently there is tender

procedure on piece of land. Land will be acquired by end of August 2003

followed by construction of distillery.