In the period from March 10 to March 22, 1995 the Maritime Investors Company (Associated Member of ROSH Group Companies) has acquired the block of shares of the joint-stock company of an open type Baltic Marine Shipping Company (BMS Company) in the amount of 735,504 shares or 23,14%.

On April 27, 1995 the owner of Maritime Investors Company Mr. Mark Klabin met with the President of BMS Company Mr. V. Kharchenko. On April 28, 1995 the convention of the shareholders was held. One of the items of the agenda was the approval of the Charter of BMS Company. The nominees for the Board of Directors were voted. Based on the results of the voting the Board of Directors was comprised and Mr. M. Klabin, W. Battler, M. Krotov (representatives of Maritime Investors) formed a part of it.

From the period, mentioned above, the Maritime Investors Company has put considerable effort on finding out from financial crisis of the BMS Company.

The representatives of the Maritime Investors Company began the study of materials on the state of management, property account and business operations in BMS Company. Based on the study of materials in the Personnel Department, schemes of the structure and suggestions on its modification were developed, as well as a number of other materials, including analysis of the amount and distribution of shares of BMS Company between the affiliated Russian and foreign companies.

The offers of the company Maritime Investors on activity BMS Company have caused interest of the mayor of St. Petersburg A.A. Sobchak. In June, 1995 the meeting of Mark Klabin and A.A. Sobchak was held. On this meeting the issue of the financial state of BMS Company was discussed as well as refinancing of "Anna Karenina" ferry.

The document prepared by Maritime Investors and containing suggestions on overcoming the financial crisis was presented to the attention of St. Petersburg Mayor A.A. Sobchak, Chairman of the State Commitee on Property of Russia Belyaev and to the Board of Directors of BMS Company. Taking into account the difficult situation in BMS Company and the need to refinance "Anna Karenina" ferry, Maritime Investors Company has suggested to obtain the largest possible credit in the amount of 250 million US dollars, using all the vessels as a collateral. This would allow to settle all the debts of the BMS Company, refinance "Anna Karenina" ferry and invest part of the money in the construction and renovation of the fleet.

Simultaneously with it, Maritime Investors Company conducted work in different directions and searched various programs to find out from financial crisis for the BMS company and applied gain on solution of problems connected with the question of using the vessels as the collateral in favor of the Swiss company Planmarine. This question was discussed at the meetings. The question was introduced in the following revision - to allow the temporary collateral of vessels on behalf of BMS company until the transfer of the said vessels to affiliated company "Euroshipping". The temporary collateral was approved by the Board of Directors. The representatives of Maritime Investors Company asked to present the documents explaining the origin and the amount of the debt.

The issues of the debt and the collateral of vessels in favor of Planmarine Company (Switzerland) were discussed many times.

Because of appearing some discords and factors between Maritime Investors Company and Planmarine Company, as well as because of economic and political circumstances realization of the project was held.

The decision on obtaining the credit in the amount of - 250 million US dollars from Maritime Investors Company was made.

However, to the sorrow of Maritime Investors Company, conditions, which were offered to the Maritime Investors Company by Mr. Filimonov, president of the BMS company, were inconvenient on warranties of payment of the credit.

On August 11, 1995 the tender on sale of the motor ship "Mechanic Konovalov" for the debts of the Company was scheduled in order to prevent property losses of BMS Company and protect the investments. In connection with the economic and political circumstances, and also in connection with modifications of circumstances in the BMS company, Mr. Mark Klabin has accepted a decision about withdrawal from structure of the members of BMS company Board of directors and transferred the shares to other companies.