To Investors of open-ended investment funds ”Parex Eastern European Balanced Fund”, ”Parex Eastern European Bond Fund”, ”Parex Eastern European Local Currency Bond Fund”, „Parex Balanced Fund” Regarding merger of open-ended investment funds ”Parex Eastern European Balanced Fund”, ”Parex Eastern European Bond Fund”, ”Parex Eastern European Local Currency Bond Fund”, „Parex Balanced Fund” under the management of „Parex Asset Management” IPAS We would like to inform you, that with the intention to enchase the efficiency of Funds performance as well as to optimize Funds administration expenses, the Board of "Parex Asset Management" IPAS (Company) has made a decision to merge open-ended investment funds under its management - "Parex Eastern European Balanced Fund", "Parex Eastern European Bond Fund", "Parex Balanced Fund" and "Parex Eastern European Local Currency Bond Fund”. On June 19, 2009, Financial and Capital Market Commission made a decision to allow the merger of 4 (four) mentioned above open-ended investment funds under the management of Company into a single open-ended investment fund ”Parex Eastern European Fixed Income Funds” with 2 (two) sub-funds: Sub-fund „Parex Eastern European Bond Fund” will be formed from the current open-ended investment fund „Parex Eastern European Bond Fund”. All Investors will become the Investors of sub-fund „Parex Eastern European Bond Fund”, retaining the current number of the investment certificates and the current amount of investments on the instant of merger. The base currency of the sub-fund is USD. Sub-fund ”Parex Eastern European Balanced Fund” will be formed by adding open-ended investment funds ”Parex Eastern European Local Currency Bond Fund” and ”Parex Balanced Fund” (cease to exist on the day of merger - July 20, 2009) to the open-ended investment fund ”Parex Eastern European Balanced Fund”. All Investors of open-ended investment funds ”Parex Eastern European Local Currency Bond Fund” and ”Parex Balanced Fund” will become the Investors of sub-fund „Parex Eastern European Balanced Fund” retaining the current amount of investments on the instant of merger. The number of the investment certificates of Investors of open-ended investment funds ”Parex Eastern European Local Currency Bond Fund” and ”Parex Balanced Fund” within a new sub-fund ”Parex Eastern European Balanced Fund” will be proportional with the current amount of investments of each Investor on the instant of merger divided by value of the investment certificate of open-ended investment fund ”Parex Eastern European Balanced Fund” on the instant of merger. Since the base currency of the sub-fund ”Parex Eastern European Balanced Fund” is EUR, but the base currency of open-ended investment fund “Parex Balanced Fund” is LVL, converting of currency will be carried out on July 20, applying market exchange rate on July 17. The base currency of the sub-fund is EUR. The decision of Financial and Capital Market Commission to allow the merger of the Funds and to register a new open-ended investment fund will become effective in one month after announcing this decision to Company, that's on July 20, 2009. In order to ensure implementation of the decision, starting from July 17 up to July 20 Company will suspend the issue and redemption of the investment certificates of funds undergoing merger. The issue and redemption of the investment certificates of sub-funds “Parex Eastern European Balanced Fund” and ”Parex Eastern European Bond Fund” of fund “Parex Eastern European Fixed Income Funds” will be renewed starting July 21st, 2009. During the process of the merger of open-ended investment funds "Parex Eastern European Balanced Fund", "Parex Eastern European Bond Fund", "Parex Balanced Fund" un "Parex Eastern European Local Currency Bond Fund” the rights of investors will be observed, the current amount of investments of each Investor will remain invariable and during this period of time guaranteeing for each Investor the ability to exercise their rights stated in Funds prospectus without any limitations. Fund investors have rights to request redemption of investment certificates, and according to Fund prospectus no commission fee will be applicable for this operation. The application of redemption of fund investment certificates can be submitted to Company no later then on July 17, 6.00 p.m. (Latvian time). Redemption of investment certificates will be carried out in the established order stated in Fund prospectus. The documents of open-ended investment fund “Parex Eastern European Fixed Income Funds” and announcement to Investors of open-ended investment funds "Parex Eastern European Balanced Fund", "Parex Eastern European Bond Fund", "Parex Balanced Fund" and "Parex Eastern European Local Currency Bond Fund” are provided on our web site www.parex.lv or can be acquired by visiting our office after address: Riga, Z.A.Meierovica boulevard 14, 1st floor, during business hours starting from 9.00 to 18.00. Attached please find the scheme of the merger. Sincerely yours, “Parex Asset Management” IPAS