PRESS RELEASE

26 November 2008

24 November 2008 had previously been set as the earliest preferable date by which, in compliance with the Investment Agreement, all the preconditions for the sale of 51% of Parex banka's shares should have been fulfilled. During this time, approval for this State aid has been received from the European Commission. The Latvian Competition Council has also given its consent for a transfer of 51% of the Bank's shares to Mortgage and Land Bank of Latvia, and a number of other arrangements provided by the Agreement have also been
exercised.

However, as talks are still in progress with the syndicated lenders, the Government has decided to extend the deadline for fulfilling the conditions precedent under the Agreement; thus, the Agreement will remain effective after the previously appointed date. Today the Minister of Finance confirmed to the senior management of Parex banka that it is in the State's interest to implement the Agreement in order to stabilize the country's financial system.

Additional information:
Irena Mizisa
Head of Investor Relations
Phone: +371 6 777 8565
Fax: +371 6 777 8569
e-mail: investor.relations@parex.lv