30.07.2003, Tallinna Farmaatsiatehas, TLN

Tallinna Farmaatsiatehas      NEWS RELEASE                      07/30/2003



ABOUT SHAREHOLDERS' EGM



Additional information regarding extraordinary meeting of Tallinn

Pharmaceutical Plant shareholders held on July 25, 2003



1. Strategic development of Tallinn Pharmaceutical Company in the future.



Tallinn Pharmaceutical Company is the company which in long-term perspective

specializes in manufacturing of ointment in concern frames. Company shall

organize the manufacturing according to all international standards (GMP).

In July 2003 Tallinn Pharmaceutical Company got manufacturing license for

ointments for 5 years. The main purpose of company in frames of concern is to

rise the sales value and profitability. Purpose is to gain sales turnover of

year 2002 for the year 2005 in sales of ointments.



2. Amendments to the Concern Agreement



As of 21 July 2003, Public JSC Grindeks and JSC Tallinn Pharmaceutical Plant

(TPP) concluded amendments to the existing Group of Companies Agreement

(Concern Agreement). These amendments gained approval at the TTP shareholders

meeting on 25 July 2003. The respective agreement specifies the relationships

between Grindeks as a parent company and TPP as a daughter company.



Accordingly, the amended Agreement plays substantial role in establishing the

criteria for an integrated system of finances, marketing and sales structure

for both companies. In order to enhance successful future development for TPP

and to optimize the costs within the concern, Grindeks takes over the

functions and related costs of sales and marketing for the TPP product.



This ensures further integration of TPP with Grindeks, providing greater

development potential for TPP in the future.



3. Amendments to the License Agreement.



As of 21 July 2003, amendments to the existing License Agreement between

Public JSC Grindeks and TPP have been contracted. The amendments were

approved at the TPP shareholders meeting on 25 July 2003.



According to the respective amendments to the License Agreement, Public JSC

Grindeks assumes all external financial liabilities of TPP amounting to 27

mill EEK. Following the transfer of the liabilities Grindeks will stop paying

the fixed commission for the production of tablets as provided by the

Agreement before.



The amount that would have been received by TPP for the production of

tablets, if the agreement were not amended, would not cover respective loan

payments due for the next two years, and the balance would only be reached in

2007. Accordingly, the new provisions of the License Agreement will improve

the TPP cash flow, allowing investments aimed at the company’s development.





4. Election of new members of Supervisory Board



Shareholders decided.to elect Kirovs Lipmans, personal code 051140-11828,

residing in Riga, Latvia, a new member of the Supervisory Board of Tallinna

Farmaatsiatehase AS since 25.07.2003.



K.Lipmans has born in Liepaja, Latvia in November 5, 1940.



Education:

                1969     Leningrad´s Institute of the Railage engineering,

                         Faculty of Economics, speciality - economist.

                1994     Commerce Education Centre of St.Petersburg,

                         business courses, Management of Marketing,

                         Business Management

Work Experience:

           From 2002 -   Advisor of Holding Company Grindeks

           From 2002 -   President of Holding Company Kalceks

           1996-2002     President of Holding Company Liepajas Metalurgs

           1991-1996     General Director of RKF Liplat Ltd

           1989-1991     General Director of VEF-Radio



Social activities:       President of the Latvian Ice Hockey Federation



Shareholders decided to elect Vitalijs Gavrilovs, personal code 210147-11827,

residing in Riga, Latvia, a new member of the Supervisory Board of Tallinna

Farmaatsiatehase AS since 25.07.2003.



V.Gavrilovs has born in Tartu district, Estonia in January 21, 1947.



Education:

           1993-1994     University of Latvia, master degree in Economics

           1970-1973     Riga Technical University, Bachelor degree in

                         Economics

           1964-1969     Riga Technical University ,Bachelor`s degree in

                         Mechanical Engineering



Current position:

           A/S Aldaris (Brewery), Chairman of the Board, President since 1985

Social activities:

           President of Latvian Employers´ Confederation, Vice-President of

           Latvian Brewers´ Association, Chairman of Board of Latvian Beer

           and Soft Drinks´Tara Users Association, Council Member of

           Hansabanka Latvia, Board Member of Institute of Latvia 

           Council Member of Three Stars´Award of Republic of Latvia



Members of the TPC Supervisory Board have elected Kirovs Lipmans as the

Chairperson of TPC Supervisory Board.





Ibraim Muhtsi

CEO

+372 6120201