Baltikums Bank will redeem bonds repurchased on secondary

AS ”Akciju komercbanka ”Baltikums”” (hereinafter - the Bank) has decided to
redeem 37,900 (thirty-seven thousand nine hundred) bonds (ISIN LV0000800407) on
14 October 2009 after AS ”Akciju komercbanka ”Baltikums”” repurchased them on
the secondary market. 

As at 07.10.2009, the total amount of redeemed bonds of the third issue was EUR
3.79 million (37.9% of the issue or 37,900 bonds). 

At present, Baltikums Banka bonds of the third issue with the total amount of
EUR 6.210 million are publicly quoted and listed on the stock exchange NASDAQ
OMX Riga. The Bank has successfully redeemed first two issues of its bonds
earlier. 

The Bank's interest in redemption of its own bonds is caused by the following
factors. First, Baltikums Banka has considerable free funds. Second, these
bonds are traded in the market with a significant discount to the nominal;
therefore, Baltikums Banka redeems the bonds prematurely and thus minimizes its
interest expenses. The Bank believes too that by ensuring market liquidity of
its bonds it contributes to maintaining good business relations with investors
both currently and in the future.  The Bank's opinion is that it is very
important especially these days, when there is instability and nervousness in
the market. 

In the future, the Bank might consider more bonds issues depending on the
situation in the financial markets and customer demand for financing of
promising projects. 

The non-audited profit of Baltikums Banka for the first half of the year
amounted to LVL 1.072 million. As of 30 June this year, the Bank's assets made
up LVL 103.916 million. At the end of June, Baltikums Banka issued LVL 26.863
million in bonds including loans to households for home purchase worth LVL 14.1
thousand and mortgage loans worth LVL 31.7 thousand. The amount of attracted
deposits was LVL 74.482 million by the end of June. 

Information on public bonds issued by the Bank:

	                   Issue 1	            Issue 2  	 Issue 3
Amount of the issue, EUR	3.855 mln      	  5.0 mln	          10.0 mln
Coupon, % p.a.	  6 month EURIBOR + 3.5%	   6.875% 	3 month EURIBOR + 3.0%
Period	                  2 years	           3 years 	3 years
Maturity date	        29.12.2006 	 20.04.2009	02.02.2010
Listing	                  Redeemed	          Redeemed	         NASDAQ OMX Riga

Tatjana Gaivoronska
Baltikums Banka
Head of the Product Development and Marketing Department
Tel.: +371 67 031 343, +371 29 253 515
E-mail: tatjana.gaivoronska@baltikums.eu
Baltikums Bank will redeem bonds repurchased on secondary market
