Privatisation Agency enters negotiations for the conclusion of Parex banka's Share Purchase Agreement

On 25 February 2009, the Privatisation Agency informed that it has entered into
negotiations with the Mortgage and Land Bank of Latvia for the conclusion of
Parex banka's Share Purchase Agreement. Parties agreed that the agreement will
be signed and become effective in the immediate future. Approval from the
Financial and Capital Market Commission is a prerequisite to conclude the deal. 

Henceforth, a specially formed interinstitutional work group under the guidance
of the Finance Minister will resolve all questions pertaining the negotiations
with the lead consultant Nomura Inetrnational plc, increase of Parex banka's
capital, as well as the proposals of possible investors, including the European
Bank for Reconstruction and Development, to participate in the equity capital
of Parex banka, while the Privatisation Agency will carry out necessary routine
activities involving management of shares. 

As reported, on 24 February 2009, Government made a decision to transfer
state-owned 85,14% of Parex banka's shares into holding of the Privatisation
Agency to ensure further professional actions and prepare the Bank for capital
increase and further selling. Under this decision the Privatisation Agency
shall take over Parex banka's shares owned by the Mortgage and Land Bank of
Latvia upon the conclusion of purchase agreement. 

About the Privatisation Agency:

The Agency is experienced in forfeiting of state shares of credit institutions
like Latvian Savings Bank, Latvijas Unibanka. The Privatisation Agency has
organised international offers of shares of several Latvian enterprises (GDR -
Unibanka, Latvian Gas and Latvian Shipping Company). Similarly, the
Privatisation Agency has collaborated with notable international institutions
and world class consultation companies like Nomura International plc,
Pricewaterhouse Coopers, Ernst&Young, EBRD, UBS, KPMG, Villiams de Broe. The
Agency has concluded 172 capitalization agreements for the total amount of LVL
11 152 217.01, as well as sold shares of 321 companies for the total amount of
LVL 455 675 200.83. 

About Parex banka:
Being founded in 1992, Parex banka offers universal banking services throughout
the Baltic region, the CIS and other European nations such as Germany,
Switzerland and Sweden. Parex Group companies operate across the banking,
finance, leasing, asset management and life insurance sectors. Parex banka is
the only partner of American Express in Latvia and Lithuania, allowed to issue
American Express credit cards. Since 05 December 2008 the State owned Mortgage
and Land Bank of Latvia is the majority shareholder of Parex banka. 

Additional information:

Indra Zinkeviča,
Head of Corporate Communications and Public Relations
Parex banka
Phone: 67778571 or 29139449
e-mail: indra.zinkevica@parex.lv
www.parex.lv 

Anete Frīdenšteina- Brīdiņa
Public Relations 
Privatisation Agency
Phone.: 67021354, mob.: 22019025
E- mail: anetefb@mail.lpa.bkc.lv 
www.lpa.bkc.lv