LIFOSA

MATERIAL EVENT



MAKING OF A (CREDIT) CONTRACT



AB Lifosa and European Bank for Research and Development sign a contract

enabling to take a loan of USD 60 million for the period of 8-12 years.

The date of the agreement registration is 12 October 2000. After the contract

terms are fulfilled, with the help of the loan, short and medium-termed loans

of the company will be refunded, the construction of the ammonium reservoirs

will be financed, the reconstruction of sulphur acid shop will be accomplished,

the construction of the import-export terminal in Klaipėda and other small

investments will be financed.





J. Baniota

Finance Director

(257) 66410