UNAUDITED HALF-YEAR TURNOVER OF AS “LATVIJAS BALZAMS” IS

39,3 MILLION LATS

 RIGA, August 28, 2009 – The unaudited half-year turnover of the largest producer of alcoholic beverages in the Baltics and the largest food industry company in Latvia AS “Latvijas balzams” is 39,3 million lats, which is 18% less than in the first half-year of 2008.

 Company's sales in Latvia's market have decreased by 20%, if compared with the first six months of 2008. At the same time, total export volume has decreased by 15,9%, however, exports to EU member states have decreased by only 9,9%, when compared with similar time period of 2008.

 During the first half of 2009 AS "Latvijas balzams" has paid 21,9 million lats in taxes, out of which 16,5 millions were excise tax. Company's profit in the first six months was 1,25 million lats, which is 11% less than a year ago.

 "It's important that we have succeeded in safeguarding our export volumes, where, granted, there is a decrease, but not as noticeable as in Latvia," says Kārlis Andersons, Chairman of the Board, AS “Latvijas balzams”. "Our performance indicators were negatively affected by global drop in consumption due to economic recession, repeated increase of excise tax in Latvia and growth of illegal alcohol market. Keeping in mind the overall decrease of retail sales in Latvia and the Baltics, our half-year results correspond to forecasts."

 Even though economic situation in the Baltic States is critical and purchasing power of population has decreased, AS "Latvijas balzams" aims to retain its market share and to continue expanding exports by improving and increasing its product portfolio. The main export markets of AS "Latviajs bazams" are the Baltic States, Poland and Scandinavia.  

 About AS "Latvijas balzams"

AS "Latvijas balzams" was founded in 1900. It is the largest producer of alcoholic beverages in the Baltic States and the largest food industry company in Latvia. AS "Latvijas balzams" produces over 130 different alcoholic beverages out of which almost 53% are beverages with low alcohol content. Company's products are exported to over 30 countries and on export contract for "S.P.I. Group" to over 80 countries worldwide. The major shareholder of AS “Latvijas balzams” is “S.P.I.  Distilleries. B.V.” which owns 89,52% of shares. More information can be found at: www.lb.lv

 Kārlis Andersons,

Chairman of the Board, AS "Latvijas balzams"

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