Latvijas kuģniecība 11.01.2007 CHANGES IN JSC LATVIJAS KUĢNIECĪBA FLEET STRUCTURE JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) hereby informs that, in order to ensure finance for ordering four additional middle-range tanker newbuilds, today, 11 January 2007, the Company’s Supervisory Council has reviewed and approved the sale of two Panamax-type tanker vessels m/t Zemgale and m/t Latgale considered within the frames of LASCO fleet further development project developed by the work group of the Company’s shipping experts. As already reported, on 28 December 2006 LASCO Management Board conceptually approved the plan for further development of the Group’s middle-range tanker fleet through the expansion of the given segment’s total tonnage by approximately 200 thousand deadweight tons (DWT) by ordering four additional newbuildings. To this effect, the research of the shipbuilding market as well as the investigation of financing options (including the sale of other vessels comprising LASCO fleet) has been commenced. Having assessed the possibilities for the Group’s fleet further development in line with JSC Latvijas kuģniecība strategic goals and objectives, i.e. retaining the Group’s position among the world’s top ten handy-size and middle-range tanker owners, LASCO work group pointed out both the inadequacy of m/t Latgale and m/t Zemgale tonnage (DWT 68,467) for the above-mentioned tanker segment and a favourable market situation for the sale of the vessels. To ensure finance required for the investments in LASCO fleet renewal programme, the sale of Panamax-type tankers was planned already in late 2003. However, it was postponed due to the unfavourable situation if the shipping market. At the same time it was resolved by the Company’s Management Board to instruct the work group of the LASCO shipping experts to follow the changes in the international shipping market in order to resume the process subject to favourable market conditions. According to LASCO Strategic Plan to the Year 2010, the renewal of LASCO’s tanker fleet is to be financed through both debt and equity. At present JSC Latvijas kuģniecība fleet comprises 30 product tankers, 2 LPG carriers, 5 reefer vessels, 1 Ro-Ro/general cargo vessel, as well as 3 tankers (Blue Star, Green Star and Maria M) time chartered in from other shipowners. For detailed information: Marita Ozolina-Tumanovska Head of PR Department Phone: (+371) 7020120, (+371) 29287169 E-mail: marita.ozolina@lscgroup.lv