On the information in the newspaper „Dienas Bizness”

The Board of the SC “Staburadze” informs by this letter that it has received
the following information from the stock holder NP Confectionary AB reflected
in the today's newspaper „Dienas Bizness”: 

“NP Confectionary AB”, the owner of the S/c “Laima”, S/c “Staburadze” and S/c
“Gutta” prepares to buy several companies outside Latvia and to invest about
300 million euros within the period of two next years. 
	The executive director of “NP Confectionary AB” and the head of the Board of
S/C “Laima” Juris Jonaitis reveals the plans to purchase new companies in
sweets and soft drinks, as well as fast and easily made food manufacturing
industry. 
	At present, companies are being searched within the Baltic countries and the
nearby markets - St. Petersburg, Moscow, Poland, where “NP Confectionary AB”
already owns “Lider Artur”, as well as in Check Republic and Scandinavia, it is
interested also in Great Britain. Active work is being carried out now with 12
projects and the turnover of these companies ranges from five to 150 million
euro. J. Jonaitis explained that one bargain will be concluded about the
purchase of fast and easily produced food production company in one of the
neighbouring countries soon, but hi did not mentioned the name of the company
still. 
	Characterizing the market of Russia, J. Jonaitis, on his turn, points out that
the companies have developed within the previous years very fast and the
investments have been evidently much more intense than in the Baltic countries.
Russian companies are technically and technologically much better equipped and
the quality of the products is better than in Latvia. „There are separate
areas, where we see companies qualified for two important factors - an
increasing food market and, the other one - we can add our knowledge or obtain
benefit by uniting the new companies with those we already have now,” J.
Jonaitis says. 
	J. Jonaitis does not exclude the possibility to supplement the existing areas
of activity with additional ones, but the present development is planned in the
areas already mentioned before. „We have a very clear direction now - we have
acquired experience, knowledge, and we have understood what we need to do
within the particular industry in order to gain the maximal profit. If we try
to penetrate to a new segment, very strong arguments are necessary to do it,”
J. Jonaitis says. The company intends to implement the plan developed by
“Nordic Partners”, the owners of “NP Confectionary”, together with the bank
from Island “Landsbank”, who is the partner of “NP Confectionary AB” already
now. 
	Till the year 2009, it is planned to increase the turnover of the companies
included within “NP Confectionary AB” for 85% in comparison to the previous
year. J. Jonaitis considers it to be possible, because the area of food
production is very fast growing. Secondly, investments in new technologies and
the development of new products of the existing companies will be very intense.
Also considerable budgets to improve the popularity of the products are
planned, although he did not provide details. 
	It must be added, the company has a significant increase in the trade amounts
not only in Latvia, but also in Lithuania and Estonia. “NP Confectionary”
considers the Baltic market to be the most important or the number 1. „We have
a strong belief that food industry has a very good future in the Baltic market
within the next five to ten years,” J. Jonaitis says. The turnover of the
existing and the planned companies can reach 339 million euros in 2009 that
means for 306% more than in 2006. 
	The target of the company is to develop a strong and profitable holding
company by which to enter in one of the Scandinavian stock exchanges in 2009 in
order to become a public company. It is not précised yet to which stock
exchange to go, but the vision and plan for it is quite clear. 
	„At the beginning, the critical mass for the company portfolio must be reached
that may be the turnover over 300 million euros, and then the company can
become an interesting target of investments for the investors of some of
Scandinavian stock exchanges,” J. Jonaitis explains. 
	As it was already announced, the shareholders of S/c “Laima” and S/c
“Staburadze” decided to stop the quotation of the shares in the Free List of
Riga Stock Exchange and to remove the shares from the list after a detailed
analysis of the expediency and efficiency of such quotation, when the shares
were placed on the stock exchange for approximately a month. 
	Now, after the compulsory offer to the little shareholders to purchase their
shares will be completed, the owners of the company will have an opportunity to
act freely with the company by developing it and preparing for a new period of
work in its way to some of the Scandinavian stock exchange. 
Also changes in Latvia may be expected soon, because the plants of S/c “Laima”
and S/c “Staburadze” will be moved to Granita street in Salaspils country area,
where a territory for the building of a new plant is already booked. The
technical project of the plan is being developed at present and the preparatory
work goes on in order to receive the permissions for the necessary operations.
The year 2009 is the deadline, when the new plant must begin its work. The
amount of the planned investments for the building of the new plant and the
renewal of technologies reach about 20 million Ls. The company will not invest
in building construction, “NP Properties” belonging to “Nordic Partners” will
do it, but S/c “Laima” and S/c “Staburadze” will rent the rooms. 
	After the moving, “NP Properties” will deal with the real estate at the centre
of Riga, where both plants are situated now. 
	Even if rumours about as if possible selling of S/c “Laima” and S/c
“Staburadze” can be heard from time to time, J. Jonaitis says that they are
speculative, because tens of interested persons from large international
companies to smaller investors willing to buy the sweet manufacturers are
offering lots of proposals, but “we will not sell the companies, because we see
ourselves, how to develop them”, J. Jonaitis adds. 
	As the data of both manufacturers show, the sweets market is growing and, in
separate categories, the increase has been for 15-20% against the indicators of
the year 2005 in the Baltic market. Now, S/c “Laima” and S/c “Staburadze” take
the leader's role in the sweets business within the market of the Baltic
countries. 

With the best regards,

Normunds Ozolins, 
The Head of the Board