CORRECTION: LASCO Q1 Profit Rises 4.5 Times and Reaches USD 45.8 mil - amended message of 25.05.2007

JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) hereby informs that
the Group's Net Profit After Tax for the first quarter of 2007 reached USD 45.8
million, thus exceeding the respective result for 2006 by 4.5 times or USD 35.5
million. The result was ensured by both Vessel Operating Profit and Gain on
Sale of Vessels, as evidenced by the Group's Un-audited Financial Statements
for the first three months ended 31 March 2007 reviewed and considered today,
25 May 2007, by LASCO Supervisory Council. 

As at 31 March 2007, the fleet under LASCO commercial management comprised 39
vessels: 31 product tankers, 2 LPG carriers, 5 reefer vessels and 1
Ro-Ro/general type vessel. In the reporting period, all types of LASCO fleet
continued to operate with profit, and the Group's total Vessel Operating Profit
made up USD 15.7 million, an increase of USD 176 thousand compared to the
respective period of 2006. 

The largest contribution to the Group's total Vessel Operating Profit (74% or
USD 11.6 million) was made by its Tanker Fleet. The contribution made by LASCO
LPG carriers amounted to 19% or USD 3.1 million. LASCO Reefer Fleet and Dry
Cargo Fleet generated, respectively, 5% and 2% of the Group's total Vessel
Operating Profit. 

“The Company's positive results were undoubtedly contributed by the
successfully commenced restructuring of LASCO fleet: the proportion of younger
and more profitable tonnage has increased considerably. The total number of
vessels as at the end of the first quarter of 2007 has not changed compared to
respective period of 2006. However, it should be noted that while 9 vessels
were sold during the previous year, the fleet was also extended with 8 new
tanker vessels, including 5 newbuildings and 3 tankers time chartered in from
other shipowners,” stressed Imants Vikmanis, Chairman of JSC Latvijas
kuģniecība Management Board. 

As repeatedly noted by Mr. I. Vikmanis, the maintenance of a younger and
smaller tonnage is economically more sound and ensures better performance than
an older, even though a larger, fleet. 

In order to ensure finance for ordering four additional middle-range tanker
newbuilds, on 11 January 2007 the Company's Supervisory Council 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. Besides,
two of LASCO fleet's older vessels (m/t Majori and m/t Pablo Neruda) were sold
for scrap. 

At the beginning of the reporting period LASCO took the delivery m/t Kraslava,
the first out of four tanker newbuilding ordered at Hyundai Mipo Dockrd Ltd. A
festive ceremony took place also at 3.Maj shipyard in Croatia, where already
the fourth tanker newbuild (m/t Targale) was delivered to Latvijas kuģniecība. 

As already reported, in order to implement one of the main strategic objectives
set in its Strategic Plan 2005-2010, namely tanker fleet renewal, LASCO has
ordered 14 tanker newbuildings: 4 at Hyundai Mipo Dockyard in Korea and 10 at
3.Maj shipyard in Croatia. 



For detailed information:
Marita Ozolina-Tumanovska
Head of PR Department
Phone: +371 7020120, 9287169
E-mail : marita.ozolina@lscgroup.lv