Prospective  JSC  "Grindeks" extraordinary shareholders General meeting

on the November 21,1998 was cancelled because of the absence of quorum.

Largest       shareholders      "Arial"Ltd.(39.33%)      and      "INEX

INFORTRADE"Ltd.(23.07%)  did  not  attend meeting. They could not reach

united  view  on the development of the pharmaceutical holdings company

and in connection with that changes in the Management Board.

According  to  legislation  next shareholders Meeting General will take

place during following 15 days.