According to the non-audited data, last year the net profit of Grindeks

,  largest  producer  of  medicines in Latvia, reached the level of 1.3

millions  Ls,  which  is the highest profit indicator in the history of

Grindeks  .  The Company's turnover last year amounted to 18.76 million

Ls, which is by 18.6% more than in 2002.

In  2004  the Company plans to sell the products for 24 million Ls. The

positive  financial  indicators  of  the  Company  in  2003  constantly

promoted  the up-going trend of the rate of Grindeks shares and rise in

the  share  price - one Grindeks share at the beginning of last year at

the  Riga  Stock  Exchange cost 0.55 Ls, but at the end of the year its

price reached 0.92 Ls.

Janis  Romanovskis,  Financial  Director  of  Grindeks  , describes the

Company's performance in 2003 as successful: "On the whole the previous

year  in  the development of Grindeks must be evaluated as positive and

stable,   which  demonstrates  a  successfully  selected  strategy  for

long-term  development. This strategy is based on formation of a Baltic

pharmaceutical  holding  company,  thus  uniting  and consolidating the

capital  of  several  companies, which enables us to optimise the costs

and   make   investments  into  development  of  directions  with  good

prospects,  for  example,  manufacturing  facility of active substances

(active  pharmaceutical  ingredients)  and  our  subsidiary  -  Tallinn

Pharmaceutical Plant."

The  non-audited  profit in 2003 of Tallinn Pharmaceutical Plant (TPP),

subsidiary  of  Grindeks  , which is included into the holding company,

amounted  to  10  million EEK (430 000 Ls). Last year the Tallinn Plant

was  specialised  for  manufacture  of  ointments  according to the GMP

principles.

The  sales volume of final dosage medicines, which constitutes 72.7% of

the  total  turnover  of  Grindeks  , in comparison with 2003 last year

increased  by  18%.  It  is  mainly  due  to the growth in sales of the

cardiovascular  preparation  Mildronate in Russian and CIS markets. The

increase   was   furthered  also  by  expansion  of  existing  markets,

introducing  new  products  and entry into new markets. For example, in

Polish  market the advancing of Osteoplus, original product of Grindeks

, has been started, but for Latvian consumers the Company at the end of

the year began to offer new natural product Herbastress.

Significant investments in 2003 have been made in the business field of

active  substances (active pharmaceutical ingredients), which form 24.9

%  out  of  the  total turnover of Grindeks . More than 500 000 Ls last

year  have been invested into development of the manufacturing facility

of  active  substances  (active pharmaceutical ingredients), mainly for

purchase of new equipment and construction of premises.

In  comparison  with  2002,  the  sales volume of active substances has

grown  by  22%,  which  is  linked to entry into new markets - of South

America   and   India.   The   demand  for  active  substances  (active

pharmaceutical  ingredients)  demonstrates  the  good prospects of this

direction  in  the  global  pharmacy business, at present an especially

high  demand  is  for  the  active  substances  Zopiclone and Oxyticine

manufactured by Grindeks .

As  the  main  achievement  by Grindeks last year one must name the GMP

(Good  Manufacturing  Practice)  Certificate  acquired  in March, which

opens up for the Company the opportunities of successful competition in

the  European  and world markets, as well as the Award of Good Practice

in Labour Protection (see <a href='http://www.grindeks.lv' target='_blank'>http://www.grindeks.lv</a> ).

At  present  Grindex  provides  employment  to more than 500 employees,

amount of taxes into the governmental and municipal budgets exceeds one

millions of Ls per year. Grindeks exports its products to 37 countries,

the  most  significant  sales  markets being the Baltic States (30.1%),

Russia (26%), CIS (25.2%), Japan (5.3%), USA (2.6%) and Ireland (3.5%).

JSC  "Grindeks"  non-audited  financial  results  (in Latvian) for 2003

available -   here (384.91 KB) 



The information was prepared by:

Jana  Semerikova,  Head  of Public Relations Department of Public Stock

Company Grindex

Telephone: 7083448, 9277837, e-mail: jana_semerikova@grindeks.lv