JSC Grindeks Management reports on financial results for 6 month 2002

JSC  Grindeks  net turnover in 6 month of 2002 reached LVL 7 787 758 by

34%  more  than  during  same  period  of last year. Net profit for the

period  was  LVL  977  309 while last year during same period - LVL 446

005.  Net  turnover  forecasts  were  exceeded by 13.7% or LVL 937 168.

Gross  profit  level  in  6  month  of  2002  reached 37.6%. Compare to

previous year it has grown by 4.6%.

During first 6 month of 2002 sales of pharmaceuticals made 71%, compare

to  last  year  growth was 27%. Significant increase was reached in all

export markets. Export to Russia grew by 39% but to other CIS countries

by  49%.  Those  results  were  achieved  due  to  growth  of  sales of

cardiovascular drug Mildronate.

Export  of Tallinn Pharmaceutical plant production compare to last year

grew by 26%. Especially of Ointment Capsicums.

During  6  month  of  2002  company  developed  its sales structures in

Russia.  All  necessary  preliminary work for opening of representative

offices  in  Kazakhstan  and  Byelorussia  was completed. Marketing and

promotional  activities  of cardiovascular drug Mildronate and sleeping

drug  Somnal  begun  in  Georgia.  During  next  6  month  promotion of

Cardiovascular drug Mildronate will begin in Azerbaijan and Uzbekistan.

Sales in Latvia were lagging. Nevertheless during 2 quarter there was a

positive sales dynamic in Latvia and Estonian regions.

Implementation  of Sanitas project - all intravenous forms compliant to

certification    requirements   would   be   produced   in   Lithuanian

pharmaceutical  company  was  completed. Production of all final dosage

forms from Tallinn Pharmaceutical plant has begun.

Export  of  active  substances has remained at the same level. Sales of

Oksitocin  and Mildronate have grown since JSC Grindeks has presence in

Asian and USA markets.

Agreement  on  output  of  new  active substance was signed with French

pharmaceutical company.

Due   to  growing  demand  of  original  Grindeks  cardiovascular  drug

Mildronate  Management Board of JSC Grindeks during 2 half of 2002 will

increase   production   capacity  of  production  unit  and  additional

investment of LVL 300 000 will be made.