The JSC "Liepājas metalurgs" provides its comments concerning the article “Dāvis: gāzes cenas var izraisīt bankrotus” [“Dāvis: gas prices may cause bankruptcies”] published in the newspaper “Dienas Bizness” on August 1, 2008, where Mr. A. Dāvis expressed his forecast regarding the JSC "Liepājas metalurgs". Mr. Dāvis stated that as the biggest consumer of “Latvijas Gāze” for the technological needs, the JSC "Liepājas metalurgs" competitiveness, production costs and profit would change, and also that JSC "Liepājas metalurgs" informed the envisaged October 2008 price increase on natural gas would cause the production cost increase of 8.5 million lats or by 2.7%. (Comment: the information published on August 1, 2008 remains valid.)
 As a result, there is a possibility that the Company’s profit may decrease by 8.5 million lats. (Comment: the information published on August 1, 2008 remains valid.) 
JSC "Liepājas metalurgs" adds that due to the steep energy price increase observed in the past year, the Company was not in a position for a further raise in salaries and wages of its employees.

Līga Šenfelde

Assistant of the Chief

t: 63455926, shenfelde@metalurgs.lv