The   Council   of   Tallinn   Pharmaceutical  Co.  has  confirmed  the

reorganization  plan  submitted  by the Chairman of the Board regarding

increasing the efficiency of operations and reducing the expenses. As a

result,  55  workers  and  30  people from administrative staff will be

discharged.  The  reorganization will be performed gradually during the

fourth quarter 1998.

Currently  300  employees  work  at  Tallinn  Pharmaceutical  Co. It is

expected  that discharge of the employees will decrease labour costs by

25 percent in 1999.

In  compliance  with  the previously confirmed plans, from September 1,

1998, Grindeks will be arranging sales for Tallinn Pharmaceutical Co.