JSC  "Grindeks"  general  meeting  of  shareholders,  put  on hold from

December  19,  resumed its work on December 24, 2002.  The shareholders

who  had  registered  themselves  for the meeting represented 67.16% of

share  capital,  and  it  is sufficient to have the power to review the

agenda  item  regarding  the  increase of share capital via debt-equity

swap for the World Bank loan.

The  shareholders were advised that Mr. Valdis Dombrovskis, Minister of

Finance,  who may exercise one-person decision power on this issue, has

not  approved  debt-equity  swap  in  2002.  Consequently,  the general

meeting  of  shareholders  did not proceed with reviewing of the agenda

item,  and  the  meeting  adjourned.  Company  has  submitted  all  the

necessary  documents  to  Ministry  of  Finance,  as  well  as  acts in

compliance  with  all  the provisions of the Latvian legislation. It is

expected  that the issue will be reviewed as a part of 2003 budget. The

company  believes  that  the  postponement  of  the resolution does not

promote  equal  competition  in the Latvian pharmaceuticals sector, and

also   created   a  constraint  to  Company  development  according  to

international  standards  and  to  meeting  the EU requirements for the

pharmaceuticals business.