On  February  8,  2002,  Tallinn Pharmaceutical Plant Supervisory Board

approved  the  Licence  Agreement between "Grindeks" and TPP, providing

for  migration  of  the  Estonian  company tablet production to Latvian

company  "Grindeks".  The  Chief  Executive  Officers  of the companies

signed  the  Agreement  in Tallinn. The Agreement will become effective

after General Meeting of Shareholders of Tallinn PP has approved it.



The  reason  for  the  solution  is  introduction  of  Good  Production

Practices  in  Estonia starting with July 2001. To comply with the said

Practices,  the  most  feasible  solution  was to reorganise the tablet

production   at   Tallinn  Pharmaceutical  Plant  by  migrating  it  to

"Grindeks".  Further  on, 13 most profitable and demanded tablet titles

will be manufactured.