2002.02.11, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMAATSIATEHAS

ANNOUNCEMENT



TFT AND GRINDEKS SIGNED LICENCE AGREEMENT



On the meeting which took place on the 8th February 2002 Council of TFT approved

the Licence Agreement between PJSC "Grindeks" and TFT AS which foresees the 

transfer of the Estonian Company TFT tablet production to Latvia and its 

location at Grindeks site.



The managements of both pharmaceutical companies have signed Licence agreement 

on February 8 in Tallinn. This Agreement will come into force after general 

meeting of shareholders of TFT has taken its decision over the Agreement.



In accordance to the legislation of the Republic of Estonia Good Manufacturing 

Practice demands corresponding to the European standards have come into force 

in the pharmaceutical industry  since July, 2001. To obey the mentioned demands 

the managament of TFT and its mother Company Grindeks have developed several 

reorganization projects of TFT production. Taking into consideration the 

financial calculations and production specialization, economically most 

beneficial is the decision to transfer TFT tablet prodtcion to Grindeks.



"The transfer of TFT tablet production to Grindeks fully corresponds to the 

interests and opportunities of both companies", comments General Director of 

Grindeks, Council Chairman of TFT Jelena Borcova." Already historically tablet 

capsules dosage forms was Grindeks priority , this production has been 

developed most intensively and during last 10 years has received the biggest 

investments. As a result in the year 2000 Grindeks Peroral dosage form 

production has received International Good Manufacturing Prcatice (GMP) 

certificate, which was issued by UK Medicine Controle Agency (MCA). So Grindeks 

Peroral Dosage form production has all the pre-conditions to manufacture TFT 

products All the transferred products also in the future will keep TFT trade 

mark", underlines Jelena Borcova.



Looking through the nomenclature of tablets produced by TFT and evaluating 

seriously the market demand,  13 most demanded and profitable products were 

chosen for further production. Among them cardio-vascular drug Digoxin, natural 

product Apilac, analgesic  Ibuprofen, psychotropic drug Ciklodol. 

"The tablet transfer project developed by the managements of both companies 

foresees in the first half of 2002 to finish fully the adaptation of the 

production technology starting the production of TFT tablets", comments Jelena 

Borcova. "The developed agreement is financially grounded and economically 

beneficial for both companies and will optimize the costs and resources for 

both Companies in of the concern".





Report to Riga Stock Exchange prepared by Ingrida Smite

Report to Tallinn Stock Exchange - should be signed by Ibraim with his 

co-ordinates





Ibraim Muhtshi

Chairman of the Board

+372 6 120 201