Year  2002  has  been  a successful one for JSC "Grindeks". The control

interest  was  transferred  to  new  owners,  thus  new  investors were

attracted  who  are  interested  in the company development. "Grindeks"

demonstrated  a  good  financial  performance  in 2002: non-audited net

sales  figure  reached  LVL  15.8 million, which is by 32% more than in

2001.  Both  the  boost  in  sales  of final dosage forms as well as of

active pharmaceutical ingredients account for this growth.

The  sales  of  final  dosage  forms  increased by 27%, mainly owing to

increased  exports  to  Russia  and  other  CIS  countries. The exports

increased  largely  owing  to  opening  new  representative offices and

product  promotion.  Last  year "Grindex" started to penetrate into the

Central European markets.

The  export  of  active ingredients increased by 22% over 2001 volumes,

mainly  owing  to increased sales in the USD, Ireland, Denmark, Hungary

and Pakistan.

Currently  nearly  90%  of  "Grindeks"  sales  are  in foreign markets,

altogether  in  36  countries all over the world. Russia is the largest

export  market,  accounting  for 24.3% of sales, CIS countries - 23.2%,

and Japan 7.4%.

"Grindeks"   is  continuously  investing  in  quality  enhancement  and

received   a   GMP  Certificate  in  2000.  Capital  consolidation  and

acquisitions  play  a  significant role in the company history: in 2002

"Grindeks"  increased  its  share  in Tallinn Pharmaceutical Plant, now

holding  64.16%.  "Grindeks"  is  planning  to  invest  8%  of sales in

research and development in 2003: this is crucial to remain competitive

in  the  context  of  EU  accession.  It  is  also  planned to increase

investments in human resource development in 2003.