With reference to the statement published on BNS news website 03.11.2008 at 15:01 herewith we provide the following information. Joint Stock Company “Liepājas metalurgs” has appealed to Liepaja Municipal Duma (City Council) for support in obtainment the State guarantee. A loan of LVL 112 million would give us a possibility to continue the on-going modernization of the company which will definitely increase competitiveness of JSC “Liepājas metalurgs” in the European and world markets as well as allow complying with environmental requirements determined by the European Union. If such guarantee from the State is not obtained, JSC “Liepājas metalurgs” will continue working on other possibilities in order to ensure development of its production process.

Agrita Pakule

Assistant of the Chief

T.: 63455926, pakule@metalurgs.lv