VAKARŲ SKIRSTOMIEJI TINKLAI

MATERIAL EVENT



CONCERNING THE COMPANY’S FINANCIAL STATEMENTS FOR THE FIRST QUARTER 2004



(Unofficial Translation Done at the NSEL)



The Annual General Shareholders’ Meeting of Vakaru Skirstomieji Tinklai AB

(hereinafter – the company), held on 30 April 2004, resolved not to approve the

company’s annual accounts for 2003 at that meeting, because, in the opinion of

the company, the company’s annual accounts for 2003 would reveal a real status

of the company’s finances and would fairly reflect the results of the company’s

operation only after an independent appraisal of the company’s long-term assets

had been performed, proceeds from the new customers and depreciation of the

capitalized property repair costs re-calculated as well as adjustments of the

accounts as of 31 December 2003 related thereto had been made.

The company’s AGM of shareholders authorised the Board to take all necessary

actions in order to remove the drawbacks specified above and correct the annual

accounts as of 31 December 2003 accordingly; the Board was also authorized to

convene an Extraordinary General Meeting of shareholders before 1 September

2004, which would adopt resolutions concerning approval of the company’s annual

accounts as of 31 December 2003.

As due to the reasons specified above the company’s annual accounts for 2003

were not approved and would undergo corrections, the company could not draw and

announce financial statements for the first quarter of 2004, because those

financial statements, if prepared on the basis of the annual accounts for 2003

which were not approved by the meeting of the shareholders, would not show

either the real financial status or fairly reflect the results from operations

of the company.





Rokas Babravicius

Head of the Public Relations and Information Department

(+370-37)-309259