LASCO Nine Month 2007 Profit 2.6 Times Exceeds the Respective Result for 2006

JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) hereby informs that
the Group's profit after tax for the nine months ended 30 September 2007
reached USD 63.9 million, thus exceeding the respective result for the previous
year 2.6 times. Compared to the first nine months of 2006, the Group's Vessel
Operating Profit has grown by 74% or USD 22.6 million and made up USD 53.2
million. As a result of the Group's fleet expansion with the newbuildings JSC
Latvijas kuģniecība assets increased by USD 165.7 million. As at 30 September
2007, LASCO Un-audited Shareholders' Equity was USD 484.1 million or USD 2.42
per share, which once again was the highest level in the history of LASCO as a
private company. 

Today, 28 November 2007, the Company's financial results for the first nine
months 2007 were reviewed and considered by JSC Latvijas kuģniecība Supervisory
Council. 

As at 30 September 2007, the fleet under LASCO commercial management comprised
44 vessels: 36 product tankers (including 3 tankers time chartered in from
other shipowners), 2 LPG carriers, 5 reefer vessels and 1 Ro-Ro/general type
vessel. In the first nine months of 2007, all types of LASCO fleet, except for
the reefer fleet the result of which deteriorated compared to the previous
year, operated with profit. The analysis of the result break-down by fleet type
evidenced that the largest contribution to the Group's total Vessel Operating
Profit (90% or USD 48.1 million compared to 68% or USD 20.7 million in 2006)
was made by its tanker fleet. 

Mr. Imants Sarmulis, Chairman of JSC Latvijas kuģniecība Management Board,
believes that LASCO tanker fleet's positive results were ensured mainly by the
optimal mixture of the different types of chartering agreements combined
depending on the shipping market conditions. “Besides, an important role in the
improvement of the results was played by the higher freight rates achieved
through the renewal of the Group's tanker fleet, as well as by a favourable
market situation,” stressed Imants Sarmulis. 

In total 10 out of 14 newbuildings ordered by JSC Latvijas kuģniecība had been
delivered to the Company by 30 September 2007: six by 3.Maj shipyard, Croatia
and four by Hyundai Mipo Dockyard Co., Ltd., Korea. The implementation of LASCO
Tanker Fleet Renewal Programme is planned to be completed in 2008, as a result
of which the Group's fleet will be expanded with 14 modern tankers compliant
with all EU marine safety requirements and international conventions. 

LASCO LPG fleet's Vessel Operating Profit for the first nine months of 2007
reached USD 4.9 million and made up 9% of the Group's total result, while that
of LASCO's only Ro-Ro/general type vessel amounted to USD 0.6 million or
approximately 1% of the Group's total Vessel Operating Profit. 

In the reporting period, LASCO reefer fleet incurred losses amounting to USD
0.5 million. The negative result can be explained by comparatively low freight
rates prevailing in the reefer market, as well as by the vessels'
repair-related costs. 

As already reported, on 2 November 2007, LASCO signed contracts with Hyundai
Mipo Dockyard Co., Ltd. on the building of four additional middle-range (MR)
tankers, thus implementing the Group's Tanker Fleet Further Development Plan
that provides for the expansion of the given segment by approximately 200
thousand deadweight tons (DWT). 

JSC Latvijas kuģniecība tanker fleet ranks 6th-8th in the handy-size and
middle-range (Handy/MR) segment of the world shipping market, at the same time
taking leading position in the North European region. 



For detailed information:
Marita Ozolina-Tumanovska
Head of PR Department
Phone: +371 67020120, 29287169
E-mail: marita.ozolina@lscgroup.lv