Public announcement regarding the mass media disseminated information on initiation of bankruptcy procedure of Lehman Brothers


The total amount of claims of the State Joint-stock Company “Latvijas Hipotēku
un zemes banka” (Mortgage and Land Bank of Latvia) from the US investment bank
Lehman Brothers, currently initiated bankruptcy procedure, is 1.899 mln LVL.
The claims comprise debt securities, purchased by the bank in order to maintain
liquid assets. The investment will not materially affect the commercial
activity of the bank or its financial results. 

At the present moment, the market value of the investments is 32% or 0.607 mln
LVL. According to the expert opinions on the mass media, it is estimated that
up to 60% would be recoverable in the future, or 1.139 mln LVL of the total
amount of investments. 

The State Joint-stock Company “Latvijas Hipotēku un zemes banka” is a 100%
state-owned bank. The profit of the bank for six months of 2008 was 2.751 mln
LVL, and equity capital 63.228 mln LVL. Rating assigned by the international
rating agency Moody's is A2.