JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) hereby informs that today, 27 February 2007, the Group's Un-audited Financial Statements 2006 have been approved by JSC Latvijas kuģniecība Management Board and submitted for consideration to JSC Latvijas kuģniecība Supervisory Council. The Group's un-audited financial results for the year ended 31 December 2006 evidence the Company's successful performance, with its Net Profit reaching USD 34.2 million, thus exceeding the respective un-audited result for 2005 by 25%. An increase has been observed also in the Group's total Voyage Income that reached USD 216.3 million compared to USD 198.7 in 2005. As pointed out by Mr. Vikmanis, Chairman of JSC Latvijas kuģniecība Management Board, the Company's positive financial results for 2006 testify to its ability to compete in the world shipping market, as envisaged by LASCO strategic goals and objectives. “The passport to LASCO's stability and development is not only professionalism and determination of our team, but also one of our greatest values - the fleet. With the delivery of the first tanker newbuildings (named after Latvian regions and towns) we have made a step towards reaching our main goal - fleet renewal”, stressed Imants Vikmanis. In the reporting period, all types of LASCO fleet operated with profit, and the Group's Total Vessel Operating Profit reached USD 45.3 million. The largest contribution to the Group's total result (72% or USD 32.6 million) was traditionally made by its Tanker Fleet. Despite the successful performance of the given segment throughout the year, it was unable to reach the respective result of 2005 due to the investments in Asari type vessels modernisation to Category 3 tankers (IMO 3) and increased dry-docking costs. LASCO Group's profit was positively impacted by the high scrap prices that enabled the Company to profitable dispose of five aged vessels. In 2006, the largest increase in Vessel Operating Profit was achieved by LASCO LPG carriers that generated USD 12.3 million or 27% of the Group's total result compared to USD 8.8 million in 2005. The performance of LASCO Reefer Fleet was affected by the low freight rates prevailing in the market. Therefore, its Vessel Operating Profit for 2006 was comparatively low: USD 152.0 thousand compared to USD 569.0 thousand in 2005. In the reporting period, LASCO's dry cargo vessel operated successfully, its Vessel Operating Profit making up USD 277.0 thousand or 1% of the Group's total result. As at 31 December 2006, the fleet under LASCO commercial management comprised 41 vessels: 33 product tankers (including 3 tankers time chartered in from other shipowners), 2 LPG carriers, 5 reefer vessels and 1 Ro-Ro/general type vessel. In the reporting period, JSC Latvijas kuģniecība Management Board conceptually approved 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. Considering the optimum size of the newbuildings, they are planned to be used for the transportation of the diversified range of cargoes including oil products, chemicals and vegoils. In 2006, major intention was paid to the implementation of LASCO Tanker Fleet Renewal Programme. 14 newbuildings have been ordered within the frames of the project: 10 tankers at 3.Maj shipyard in Croatia and 4 tankers at Hyundai Mipo Dockyard in Korea. For detailed information: Marita Ozolina-Tumanovska Head of PR Department Phone: +371 7020120, 9287169 E-mail : marita.ozolina@lscgroup.lv