On 3 April, shareholders in the Latvian Privatization Agency at an extraordinary meeting decided to increase the share capital of Parex banka by 227 million lats (EUR 323 mln). Of this amount, 165 million lats would be invested in the share capital, with the Privatization Agency buying voting shares of the new issue for a face value of 1 lat, and 62 million lats would be invested in the subordinated capital thus ensuring a 12 percent capital adequacy. The Bank's capital will be increased after additional government assistance is approved by the European Commission. As reported earlier, on March 24 the Latvian government agreed in principle on the involvement of the EBRD in the share capital of Parex banka and approved the increase of Bank's capital by 227 million lats (EUR 323 mln). About Parex banka 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 27 February 2008, the Latvian Privatisation Agency is the majority shareholder of Parex banka. Additional information: Indra Zinkevica Head of Corporate Communications and PR Ph. +371 6777 8571 or +371 2913 9449 E-mail: pr@parex.lv http://www.parexgroup.com/en/