03.03.2003, Tallinna Farmaatsiatehas, TLN

Tallinna Farmaatsiatehas      FINANCIAL RESULTS                 03/03/2003



FINANCIAL RESULTS, 12M/2002



COMMENTS TO INCOME STATEMENT, 12M/2002



The 12 months 2002 net sales of Tallinna Farmaatsiatehas amounted to 93,816

th. EEK (5,996 th. EUR). Compared to the same period of previous year the

sales were increased by 8,026 th EEK (513 th. EUR) i.e. 9.4% (net turnover in

12 months 2001  85,790 th. EEK or 5,483 th.EUR).

The operating income total increased by 5,145 th. EEK or 328 th EUR (5.4%).

Operating income in 2001  95,286 th. EEK (6,089 th.EUR) and in 2002 100,431

th. EEK (6,419 th.EUR).



Compared to the same period of previous year the total operating cost

increased by 15,348 th. EEK (981 th EUR) i.e. 19,4% (total operating costs in

2001 79,079 th. EEK (5,054 th.EUR) and in 2002 94,428 th. EEK (6,035

th.EUR)), from which the increase of expenses for materials (expenses for

materials in 2001 42,184 th. EEK (2,696 th. EUR) and in 2002 49,781 th. EEK

(3,182 th.EUR)) 7,597 th.EEK or 486 th EUR (18.0%). Others operating expenses

increased by 2,256 th. EEK (144 th.EUR) (others operating expenses in 2001

7,356 th. EEK (470 th. EUR) and in 2002 9,613 th. EEK (614 th. EUR)) 30.7%.

Others expenses increased by 5,798 th. EEK (371 th.EUR) (others expenses in

2001 6,288 th. EEK (401 th. EUR) and in 2002 12,086 th. EEK (772 th. EUR))

92.2%.



Operating profit decreased in 12 months of 2002 compared (operating profit in

2001 16,207 th. EEK (1,036 th.EUR) and operating profit in 2002  6,003 th.

EEK (384 th.EUR)) to the same period of 2001 by 10,204 th. EEK (652 th.EUR)

(63.0 %) , and net profit decreased (net profit in 2001 10,269 th. EEK (656

th.EUR) and net profit in 2002 4,935 th. EEK (315 th.EUR)) by 5,334 th. EEK

(340 th.EUR) (51.9%).



COMMENTS TO BALANCE SHEET



As of December 31. 2002 the Balance capacity was 87,772 th. EEK (5,610 th.

EUR). Compared to the net balance, the biggest decrease was in assets - fixed

assets 5,492 th. EEK (351 th. EUR) (13.4%),receivables from parent company

4,075 th. EEK (260 th. EUR) (13.9%) and raw materials stock with the sum

2,023 th. EEK (129 th.EUR) (30.1%). Trading assets decreased totally by 4,577

th. EEK (292 th.EUR) (8.4%).



In the liabilities the short-term liabilities decreased 3,316 th. EEK (211

th.EUR) (14.2%). Compared to the net balance, the biggest increase was in

liabilities - accounts payable 1,303 th. EEK (83 th.EUR) (21,0%). The owners

equity increased 4,935 th. EEK (315 th.EUR)) (15.0%) in the account of 12

months 2002 net profit.



                                                  2001           2002

Gross profit margin			    18.9	          6.4

Net profit margin                                 12.0           5.3

Return on equity (ROE)                            31.2           13.0

Return on total assets (ROA)                      10.4            5.6

Proportion of capital and reserves and all assets 33.5%         43.1%

Income of accounts receivable (by days)	   142,5          115,4

Net profit per share (EEK)                        8.22           3.95

Net profit per share (EUR)                        0.53           0.25





BALANCE SHEET AS OF 31.12.2002



in thousand EEK/EUR                       EEK                     EUR



           		  31.12.2002 31.12.2001  31.12.2002 31.12.2001



A S S E T S



CURRENT ASSETS

Cash and bank accounts                 78      390           5       25

Customer receivables

    ACCOUNTS RECEIVABLE              2,406    3,331        153      213

Other receivables

    RECEIVABLES FROM PARENT COMPANY 25,157   29,232      1,608    1,868

    OTHER SHORT-TERM RECEIVABLES       389       97         25        6

Total                               25,546   29,329      1,633    1,874



Accrued income                           3        0          0        0



Prepaid expenses                     1 499      686         96       44



Inventories

    RAW MATERIAL                     3,409    6,415        218      410

    WORK-IN-PROGRESS                   316      403         20       26

    FINISHED GOODS                  15,041   13,303        961      850

    PREPAYMENTS TO SUPPLIERS         1,299      316         83       20

Total                               20,065   20,436      1,282    1,306



TOTAL CURRENT ASSETS                49,597   54,174      3,170    3,462



NON-CURRENT ASSETS



Long-term investments                  381      424         24       27



Fixed assets

FIXED ASSETS IN NET BOOK VALUE      35,592   37,263      2,275    2,381

CONSTRUCTION IN PROGRESS                 0    3,821          0      244

Total                               35,592   41,084      2,275    2,625



Intangible assets                    2,202    2,625        141      167



TOTAL NON-CURRENT ASSETS            38,175   44,133      2,440    2,820



TOTAL ASSETS                        87,772   98,307      5,610    6,283





LIABILITIES AND SHAREHOLDERS’ EQUITY



LIABILITIES

CURRENT LIABILITIES

    CURRENT PORTION OF

    LONG-TERM DEBT                   9,415    9,415        602      602

    SHORT-TERM BANK LOANS            1,098    1,184         70       75

Total                               10,513   10,599        672      677



Accounts payable                     7,501    6,198        479      396

Other payables                           0    4,204          0      269

Taxes payable                            0       39          0        2

Accrued expenses                     2,097    2,386        134      152



TOTAL CURRENT LIABILITIES           20,111   23,426      1,285    1,497



NON-CURRENT LIABILITIES

Long-term debt obligations

    BANK LOANS                      11,327   21,840       724     1,396

    PAYABLES TO PARENT COMPANY      18,505   20,147     1,183     1,287



TOTAL NON-CURRENT LIABILITIES       29,832   41,987     1,907     2,683



TOTAL LIABILITIES                   49,943   65,414     3,192     4,180



SHAREHOLDERS’ EQUITY



SHARE CAPITAL                       12,500   12,500       799       799

RESERVES                             2,316    2,316       148       148

RETAINED EARNINGS

(ACCUMULATED DEFICIT)               18,077    7,808     1,155       499

PROFIT (LOSS) FOR FINANCIAL YEAR     4,935   10,269       315       656

SHAREHOLDERS’ EQUITY TOTAL          37,829   32,894     2,418     2,102



LIABILITIES AND SHAREHOLDERS’

EQUITY                             87,772   98,307      5,610     6,283







INCOME STATEMENT, 12M/2002



in thousand EEK/EUR                             EEK              EUR

                                          2002     2001     2002    2001

REVENUE



NET SALES                                 93,817   85,789    5,996    5,483

CHANGE IN WORK-IN-PROGRESS AND

FINISHED GOODS INVENTORIES                 1,651    1,487      105       95

OTHER OPERATING INCOME                     4,963    8,009      317      512

TOTAL REVENUE                            100,431   95,286    6,419    6,089



EXPENSES



MATERIALS, CONSUMABLES AND SUPPLIES      -49,781  -42,184   -3,182   -2,696

OTHER OPERATING EXPENSES                  -9,613   -7,356     -614     -470

PERSONNEL EXPENSES

   WAGES & SALARIES                      -12,792  -13,322     -817     -851

   SOCIAL TAXES                           -4,455   -4,579     -285     -293

DEPRECIATION                              -5,701   -5,350     -364     -342



OTHER EXPENSES                           -12,086   -6,288     -772     -402



TOTAL EXPENSES                           -94,427  -79,079   -6,035   -5,054



OPERATING PROFIT (-LOSS)                   6,003   16,207      384    1,036



FINANCIAL INCOME                           3,827       46      244        3

FINANCIAL EXPENSES                        -4,896   -5,984     -313     -382



NET PROFIT (LOSS)                          4,935   10,269      315      656



EARNINGS (LOSS) PER SHARE                   3.95     8.22     0.25     0.53





Raivo Unt

CFO

+372 6120 201