31.08.2004, Tallinna Farmaatsiatehas, TLN

Tallinna Farmaatsiatehas      NEWS RELEASE                      08/31/2004



ARBITRATION PROCEEDINGS



On 25 May 2004 the Listing and Surveillance Committee of Tallinn Stock

Exchange decided to impose contractual penalty of 250.000 kroons on Tallinna

Farmaatsiatehase AS for breach of provisions of Exchange Rules concerning

disclosure of information. On 3 June 2004 Tallinna Farmaatsiatehase AS filed

a claim with the Arbitration Court of the Exchange, whereby annulment of the

said decision on imposing the penalty was claimed.



The first preliminary hearing of arbitration proceedings was held today, on

31 August 2004. In connection with submission of additional documents the

hearing of the matter was adjourned. The next preliminary hearing will be

held on 9 September 2004.





Raivo Unt

CFO

+3726120201