29.05.2001, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMAATSIATEHAS

ANNOUNCEMENT



RESOLUTIONS OF SHAREHOLDERS' ANNUAL GENERAL MEETING



The annual general meeting of Tallinna Farmaatsiatehase AS shareholders was 

held on May 29, 2001, beginning at 11 a.m. at the conference centre of Central 

Hotel (Narva St. 7C, Tallinn).



The AGM was attended by 10 shareholders representing 808,231 shares or 

64,6585% of the share capital, thus the AGM was eligible to pass resolutions.



The AGM made resolutions as follows:



1.Elect Ms. Anu Uritam as the Chairperson of the meeting.

  Elect Mrs. Relika Arras as the Protocoller of the meeting.

  Elect Mr. Mait Kivimets as the member of Commission for Counting the Votes.



2.Confirm the Rules of the General Meeting in the wording by Management Board.



3.Confirm the Agenda of the General Meeting according to the published

announcement:

      1.KOpening the Meeting. Election of the Chairman of the meeting, the

      Secretary of the meeting and the Commission for Counting the Votes.

      2.Confirmation of the Rules of the General Meeting.

      3.Confirmation of the Agenda of the General Meeting.

      4.Report of the Chairman of the Management Board.

      5.Report of the Supervisory Council.

      6.Approval of the annual financial statement of 2000 and the conclusion

      of the auditor.

      7.Approval of the profit distribution proposal for the year 2000.

      8.Election of the auditor.

      9.Other.





4.Approve the annual report for 2000 and the conclusion of the auditor.



5.Approve the proposal for allocation of net profit of 2000.



Distribute the net profit with the total amount of 10,587,118 (ten million 

five hundred eighty-seven thousand one hundred eighteen) kroons as follows:



	to transfer EEK 2,778,655 to retained earnings account;



	to maintain the rest of the net profit of EEK 7,808,463 undivided. 

		 

6.Elect Mr. Villu Vaino (identity code 37112180215, residing in Tallinn,

Estonia, auditor licence No. 404, representing the audit enterprise 

AS Deloitte & Touche Eesti) to audit the financial reports of Tallinna 

Farmaatsiatehase AS in 2001.



Pursuant to item 9 of the AGM agenda Ibraim Muhtshi, chairman of the

Management Board of Tallinna Farmaatsiatehase AS, informed of the decree

no. 74 "Rules for manufacture of medicinal products" approved by the

Minister of Social Affairs. As at July 1, 2001, the aforementioned decree

stipulates that a company manufacturing medicinal products must meet the

traditional fair manufacturing procedures effective in the European Union.

Additional investments are planned for Ointment Department in 2001 to meet

the required traditional fair manufacturing procedures.



The Supervisory Board and Management Board of Tallinna Farmaatsiatehase AS

are considering two possibilities of improving the Tablets Manufacturing 

Department:

- additional investments for reconstruction of the existing Tablets Department.

- relocation of manufacture of tablets to a company with a certificate 

for fair manufacturing procedures (one possible partner being Grindeks,

shareholder of Tallinna Farmaatsiatehase AS). This alternative would 

meet the concern's strategy as well as consolidate concern's

financial resources and output capacities.



The AGM was ended at 11:45 a.m.





Raivo Unt

Financial Director

+372 6120201