Subject: Investment Project

We inform that by 02.12.2013 JSC RIGA ELECTRIC MACHINE BUILDING WORKS (hereinafter referred to as RER) intends to submit the project application with the purpose to apply for co-financing at the support program ‘High Added Value Investments’ administered by the State Agency ‘Latvian Agency of Investments and Development’ according to MC Regulations No. 817 ‘Regulations for second and further orders of project application selection of Supplement 2.1.2.4 activity ‘High Added Value Investments’ of activity program ‘Entrepreneurship and Investments’ of October 19, 2011.
The project target is purchasing of new technology equipment to introduce into manufacture new asynchronous traction electric motors intended for electric trains in order to extend production range of the enterprise on the basis of the enterprise scientific capabilities as well as to improve current motors of asynchronous traction for metro cars The implementation of the project results in the opportunity that allows JSC RER improving the quality of production manufactured, diversifying the production assortment, strengthening competitive capacities of the enterprise as well increasing the value of the finished production goods. Therefore, that provides new opportunities in development of new export markets.
The total amount of investments comes to about 2 million LVL in the frames of the project.
In accordance with the aforementioned support program provisions RER has commenced the purchasing procedures and on 27.11.2013 has placed information about acquisitions made in the project frames, at homepage of the Purchase Supervision Bureau: www.iub.gov.lv.
As a result of the project implementation, modernization and extension of current activities of the enterprise is provided that involves manufacture of new products.

We inform you about further course of the process.

The Board