23.10.2003, Tallinna Farmaatsiatehas, TLN

Tallinna Farmaatsiatehas      NEWS RELEASE                      10/23/2003



ABOUT AGENDA OF EGM



Tallinna Farmaatsiatehase AS, the affiliate company of PJSC Grindeks will

convene the Extraordinary General Meeting of Shareholders on 29th of October

2003. The purpose is to observe the conditions of agreements with

PJSC Grindeks.



The agenda includes the issue about the agreement for the sale of

intellectual property and  technological information between Tallinna

Farmaatsiatehase AS and PJSC Grindeks.



The project of the agreement presets the placement of the comprehensive

financial resources to the development of the Tallinna Farmaatsiatehase AS,

which is specialized on production of ointment in accordance with GMP (Good

Manufacturing Practice) standards.



According to the project of the agreement PJSC Grindeks will place 938 920

USD in Tallinna Farmaatsiatehase AS, buying two trademarks Cyclodol and

Nifetard (these are trademarks of  produced tablets), also will PJSC Grindeks

buy technological information of some other finished products. According to

the agreement the received sum will go for condonation of debt to

PJSC Grindeks.



This transaction proceeds from long-term development of Grindeks´ corporative

strategy in Baltic Sates, where Tallinna Farmaatsiatehase AS is specialized

on production of ointments.



In this way Tallinna Farmaatsiatehase AS gets free financial resources for

the development of ointment production, because the money Tallinna

Farmaatsiatehase AS should have received during the certain years, will be

received immediately.



In one`s turn PJSC Grindeks will continue takeover of  production of tablets

and capsules and production of them according to GMP requirements. As it is

known, PJSC Grindeks is the only producer of medicines in Baltic States who

has GMP certificate.



It is specified in Extraordinary General Meeting of Shareholders to survey

the amendments to the License Agreement between Tallinna Farmaatsiatehase AS

and PJSC Grindeks. The amendment presets that PJSC Grindeks will pay to

Tallinna Farmaatsiatehase AS 852 436 USD for paying the loan for Sampo

Pank. Accordingly  corresponding sum will diminish liablilities of Grindeks

to Tallinna Farmaatsiatehase AS for paying for sold production, also

including fixed charges for sold tablets.



Decisions made in Extraordinary General Meeting of Shareholders on 29th of

October 2003 will annul the Amendments to the License Agreement, which were

resolved in Extraordinary General Meeting of Shareholders on 25th of July in

2003.





Ibraim Muhtsi

Director

+372 6120201