On August 11, 2009 in the newspaper „Dienas bizness” there is an article published, in which it is mentioned that JSC „Ditton pievadķēžu rūpnīca” is planning to invest into modernization of production at about three millions euro and to found a joint venture.

We advise herewith that information published in an article represent the facts partly.

As every working company JSC „Ditton pievadķēžu rūpnīca” is also systematically and constantly considering different development alternatives and planning its activity on a going concern basis. This planning can concern modernization, expansion of the production, founding a joint venture and similar, which are desired development alternatives. This is a daily management activity of any real production, and in substance the daily management activity can not be a significant event.

Any development project has a financial estimation and at least two stages: a theoretical development and a realization.

Financial estimation without a concrete project and its financing – is not more than an expert evaluation. On the stage of theoretical development the development project is not concerete and final, and it does not oblige with any activities and does not entail any consequences. It is not a fact that the modernization will take place and will cost 3 millions euro.

And at the same time the Council and the Management Board of the company note, that till the moment when agreements or contracts about modernization of the company or founding a joint venture are concluded, that is, the stage of realization is started, this information is not a significant event and is premature. Accordingly the publication in “Dienas Bizness” in this part does not represent the facts.

The Council and the Management Board think that mass media may express their point of view in such way as they consider it necessary.

We remind our shareholders and supervising institutions once more that the company is regularly providing the topical and substantial information about the situation in the company and its development tendencies in the financial statements and management reports, and we call the shareholders to use them as primary sources for gaining information. In the same way there will be immediately disclosed just as a real development, so modernization program of the JSC „Ditton pievadķēžu rūpnīca”.

Boriss Matvejevs

The Chairman of the Council