In the circumstances of the existing global crisis one of the negative factors of the exporting production sphere is a shortage of current assets which occurred in the result of overproduction in successful years, temporary fall in consumer demand and misbalance between the payment terms for raw materials and finished products caused by this and other factors.

Shortage of current assets as a significant factor has been noted by the whole Latvian community of real production (refer to the newspaper „Bizness&Baltija” from 26.08.2009.  No.145).

This shortage of current assets is a reason why JSC „Ditton pievadķēžu rūpnīca” is forced to refuse some orders owing to inability to ensure them with raw materials.

At the same time owing to deliberate and correct politics of the JSC „Ditton pievadķēžu rūpnīca” in relationships with partners in crisis circumstances and efforts of the management we managed not only to maintain these partners, but also gain package of offers for purchase of raw materials at unique for the current market situation price conditions. Simultaneously the Management Board and the Council note a suspension of recession and a definite stabilization of JSC „Ditton pievadķēžu rūpnīca” products market which gives grounds for cautious optimism for recovery and following increase of our market already in 2010.

Non-use of favorable current price situation at present circumstances will cause essential problems for the company not only in near-term outlook, but also in future, as a forced reorientation to other manufacturers can be irretrievable owing to high market conservatism. At any rate at significantly changed circumstances the Council and the Management Board can not guarantee terms and recovery of our buyers market, and consequently – activity of the company.

Taking into account the abovementioned and decisions of the general meeting of shareholders of the JSC „Ditton pievadķēžu rūpnīca” from January 9, 2009 and on the basis of exporting manufacturing support program declared by the government of Latvia (share of exports of the JSC „Ditton pievadķēžu rūpnīca makes up 98%), which is financed from the state support funds, financial aid of European Community and International Monetary Fund and adopted normative acts regulating this program, after appropriate consultations JSC „Ditton pievadķēžu rūpnīca” has submitted application into JSC “Mortgage and Land Bank of Latvia” for receiving a purpose loan – purpose supplement of current assets for purchase of raw materials. We have taken into account that through government declarations and abovementioned normative acts the Latvian society has authorized exactly JSC “Mortgage and Land Bank of Latvia” to finance the state support from the abovementioned funds. As well we guarantee a full transparency of use of the state support, which will be directed only for purchase of raw materials.

Package of documents submitted by JSC „Ditton pievadķēžu rūpnīca” was passed by the credit committee of JSC “Mortgage and Land Bank of Latvia” and obtained acceptance for granting credit means for the abovementioned aims. The amount of state support for exporting manufacturing to be received from the funds of JSC “Mortgage and Land Bank of Latvia” is under definition. The state support will be of a significant importance for maintaining and development of the company.

This information is submitted in accordance with the provisions of Article 58 of the Law on Financial Instruments Market in respect of disclosing of significant information by the joint-stock company financial instruments of which are listed in the JSC “NASDAQ OMX” regulated market (Secondary list).

B.Matvejevs

Chairman of the Council

E.Zavadskis

Chairman of the Management Board