Subject: Measures of Support

We inform that on December 17, the Cabinet of Ministers provided support for JSC RIGA ELECTRIC MACHINE BUILDING WORKS (hereinafter referred to as RER) investment project ‘Introduction of New Asynchronous Traction Motors into Manufacture’. In the investment project frames JSC RIGA ELECTRIC MACHINE BUILDING WORKS arranges to make investments at the amount of 3, 8 million Ls for manufacture equipment modernization, to extended the range of production manufactured, by means of introduction of new asynchronous traction electric motors intended for electric trains into manufactures well to improve current asynchronous traction electric motors for metro cars. After the investment project implementation JSC RER shall have the rights to apply income tax allowance on enterprises (ITAE) at the amount of 540 000 Ls. It is arranged to unify the support granted as the ITAE allowance with co-financing of the European Regional Fund of Development (ERDF) in the frames of the support program ‘High Added Value Investments’ administered by the State Agency ‘Latvian Agency of Investments and Development’.( Currently the project is submitted for evaluation. It is arranged to obtain the resolution for granting the support in the beginning of March, 2014).The requested ERDF financing is 0, 9 million Ls.

JSC RIGA ELECTRIC MACHINE BUILDING WORKS

The Board