Baltia Air Lines Inc Watch

from SB-2/A 1 page Industrial Bank of Latvia (Logo) Lainbanka Mr. Igor Dmitrowsky President Baltia Air Lines, Inc. 63-25 Saunders St. Rego Park, Ny 11374 January 12, 1999 No. 1/2-19 Re: Baltia Air Lines, Inc. Request for 6.2 Million $ Line of Credit. Dear Mr. Dmitrowsky: Based on the Request of Baltia Air Lines, Inc., a New York State Corporation (The "Company"), Industrial Bank of Latvia (Lainbanka) Is Willing to Negotiate Issues Concerning Participation of Lainbanka in Project of Issuance of Syndicated Line of Credit to the Company in the Amount of 6,200,000 (Six Million Two Hundred Thousand US Dollars) on the Following Conditions: The Company Will Provide Lainbanka With Documentation According to Lainbanka Requirements; the Line of Credit Will Be a Short-Term Loan That Is Not Intended for Capital Investments or Long-Term Financing; the Company Will Register a Subsidiary in the Republic of Latvia, Will Open Its Account in Lainbanka and Will Agree to Conduct Banking in Latvia Through Lainbanka; the Company Will Notify About Its Borrowing Needs Lainbanka Two Weeks in Advance; the Interest Rate Will Be Between 10 to 14 Percent Per Annum. This Letter Remains in Effect Until June 30, 1999. Sncerely, 6 Greeinieku St. LV 1587 Riga, Latvia Phone: (371-7) 216520 (Signature) Fax: (371-7) 221135 D. Pelebergs (371-7) 528103 Chairman Telex: 161267 Emma LV Account Nr. 700 181 998 (Mark) Latvia Bank, Code 310101799 Form No: 004392 *

from SB-2/A 1 page Lateko Banka Latvian Economic Commercial Bank 31.03.1997 No. 248/9 To: Igor Dmitrowsky, President Baltia Air Lines, Inc. 63-25 Saunders St., Suite 7i Rego Park, Ny 11374 Dear Mr. Dmitrowsky, in Reply to Inquiry Submitted by the US Air Company Baltia Air Lines, Inc. in the State of New York (The Baltia) We Hereby Confirm That, Upon a Formal Request of the Baltia, the Lateko Bank Would Extend the Duration of the Credit Line Granted in Accordance With the Letters #496 Dated December 21, 1995 and #1849 Dated August 27, 1996 Until January 1, 1999. Best Regards, /S/ Z. Sthrauhmanis, President 21 Birznieka-Upsha Str.,lv=-1011,riga,latvia,phone:221375, Fax:+371-2-210654,telex: 181379 Latek LV Acc. No. 700161711 the Bank of Latvia, Bank Code 310101711