Tallinna Börs                 NEWS RELEASE                      09/22/2004



DECISION BY TSE COURT OF ARBITRATION



On 16 September, the TSE Court of Arbitration made a decision about the 

appeal of Tallinna Farmaatsiatehase AS to annul decision No. 7-2004 of 

the TSE Listing and Surveillance Committee of 25.5.2004. By the 

Committee's decision, a penalty of EEK 250,000 was imposed on the 

Tallinna Farmaatsiatehase AS for breach of requirements for the 

publication of information.



The Court of Arbitration decided:



1. To satisfy the appeal in part. To leave decision No. 7-2004 of the TSE 

Listing and Surveillance Committee of 25.5.2004 in force in other respects 

except for the imposition of the penalty.

2. To order the appellant to pay the registration fee and to order the 

appellant and the respondent to pay the arbitration fee in equal parts 

(i.e. EEK 10,000 each).



Comment by Tallinn Stock Exchange:



Since the Court of Arbitration found that the Tallinna Farmaatsiatehase 

AS's breach of requirements for the publication of information was 

beyond doubt, but the TSE was not competent to impose a penalty because 

of the regrettable combined effect of the wording of the legislation 

and the TSE Rules, the TSE forwards the materials of the breach to the 

Financial Supervision Authority for implementation of the penalty based 

on the arbitration award.



The TSE sees the establishment of the Tallinn Pharmaceutical Company's 

breach by the court as a positive result from the viewpoint of market 

reliability. However, it is regrettable that the formal combined effect 

of the Rules and the legislation allowed for such a situation. The TSE 

amended the Rules already before the arbitration procedure to eliminate 

the possibility of an interpretation that damages market reliability. The 

amendments were submitted to the Financial Supervision Authority for 

approval and will enter into force after approval pursuant to law.



The Court of Arbitration made its award independently; the award is lawful 

and subject to execution.



See also: <a href='http://www.hex.ee/?id=3675' target='_blank'>http://www.hex.ee/?id=3675</a>







Further information:

Tex Vertmann, Communications Manager, Tallinn Stock Exchange

Telephone: 640 8862, 526 7070

E-mail: tex.vertmann@omxgroup.com



Livia Kulm, Head of Communication, Financial Supervision Authority

Telephone: 529 1449





Tallinn Stock Exchange

Market Services

+372 640 8800