LIFOSA

MATERIAL EVENT



SEMI-ANNUAL RESULT OF LIFOSA AB



According to IAS, during six months of 2002 Lifosa AB suffered a loss of LTL

11.059 thousand, and the EBITDA ration of the first half-year remains positive.

During the corresponding period last year, the company faced a loss of LTL

36.735thousand. The EBIDA ratio of the first half-year of 2002 has approached

zero.

The loss decreased more than three times mainly because of considerably larger

production volumes (237,54thousand tons of diammonium phosphate fertilizers

were produced during six months in 2002, whereas last year production stood at

104,69thousand tons). Due to unfavourable market prices and high cost of raw

materials, at the beginning of last year Lifosa AB was forced to suspend

production in order to minimize. Moreover, during the year, the company used

only 55-60% of its production capacity. Currently, the company is operating

with full capacity is accomplishing tasks established in the company’s

restructurisation plan. During six months of 2002, the company generated

revenue of LTL 148.802thousand, whereas during the corresponding period last

year it stood at LTL 92.135thousand.





M.Gedvilas

Finance Director

8 (347) 66595