Tallinna Börs                 TRADING                           08/03/2004



FARMAATSIATEHAS - WATCH NOTATION GROUNDS ADDED



On 27 July 2004, the management board of the Tallinn Stock Exchange decided:



1. to supplement the grounds for the watch notation added to the shares of 

Tallinna Farmaatsiatehase AS as from 27 January 2003 on the grounds 

established in clauses 3.5.4.5 and 3.5.4.6 of the Supervision section of the 

Tallinn Stock Exchange Rules;



2. to add the following text to the watch notation of Tallinna 

Farmaatsiatehase AS to reason the additional grounds:



"On 22 July 2004, Tallinna Farmaatsiatehase AS made public stock exchange 

news in which it announced that a special general meeting of shareholders 

would be called at 14.00 on 8 September 2004. The agenda of the meeting 

included deciding on the takeover by PJSC Grindeks, the majority shareholder 

of Tallinna Farmaatsiatehase AS, of the shares held by the minority 

shareholders. The amount of the compensation payable to the minority 

shareholders would be EEK 27.10 per share.



In the stock exchange news, published on 7 June, Tallinna Farmaatsiatehase AS 

announced: "Grindeks informed TFT of its continuing wish to leave the Tallinn 

Stock Exchange with TFT. Therefore, Grindeks is considering other 

possibilities to leave the Tallinn Stock Exchange with TFT".



According to the auditor’s report on the auditing of the takeover report, 

dated 21 July 2004, the book value of the TFT share is EEK 38.49. 

The report concludes: "Since we do not have any information about the plans 

of the majority shareholder regarding the future activities of the company, 

we cannot present an opinion as to whether the method used is appropriate for 

specifying compensation".



The highest price paid for the shares of Tallinna Farmaatsiatehase AS by the 

tenderer in over-the-counter transactions during the last six (6) months was 

EEK 43.00.



The information revealed in the stock exchange news is clearly indicative of 

the possibility to commence the proceedings for termination of the issuer’s 

securities within the following six (6) months as set out in clause 3.5.4.5 

of the Supervision section, and proceeding from the provisions of clause 

3.5.4.6 of the Supervision section, the situation may significantly damage 

the interests of investors according to the Stock Exchange.



The text of the stock exchange news and the auditor’s report are available on 

the homepage of the Tallinn Stock Exchange.



The Stock Exchange will immediately publish the relevant notice concerning 

the expiry of the grounds for applying the watch notation.





Tallinn Stock Exchange

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