The JSC “Liepājas Metalurgs” (LM) is announcing that it has agreed with one of the leading Italian banks UniCredit MedioCredito Centrale S.p.A. on the documentation package concerning the Modernization Program Phase-II financing agreements. The total amount of the Bank’s financing is EUR 85’597’300.

The initial financing amount was planned to be EUR 160’000’000. The financing tender was announced on April 27, 2009, which on June 19, 2009 ended with no result, since no offers were received. Taking into consideration the global economics situation, due to successful negotiations, the JSC “Liepājas Metalurgs” was able to achieve a considerable reduction of the modernization project costs, without reducing the project scope of supply.

Simultaneously, the discussions with the potential financing banks continued without any interruptions, and, as a result of these efforts, a financing offer was received from the UniCredit MedioCredito Centrale S.p.A. bank. To assure the fact that the received offer was the most competitive in the financing market at that time, a repeated financing tender was conducted on December 9, 2009, which ended without a result on December 21, 2009.

In the scope of these financing conditions, the Ministry of Finance of the Republic of Latvia signed the state guarantee agreements on December 30, 2009.

Agrita Pakule

Assistant of the Chief

T.: 63455926, pakule@metalurgs.lv