JSC  "Grindeks"  extraordinary general meeting of shareholders was held

on  November  4, and was attended by shareholders representing 68.8% of

share  capital,  which  is  sufficient for taking resolutions regarding

increase of share capital.

The following agenda items were discussed:

1.  Increase of share capital: with 100% votes present a resolution was

taken  to  approve debt-equity swap for the World Bank loan, to issue a

full mandate to the Company Management Board to pursue with formalities

regarding  debt-equity  swap,  and to charge the Supervisory Board with

the   responsibility   to  monitor  the  Management  Board  activities.

Presently  JSC  "Grindeks"  share  capital  is  LVL 7,735,000, built of

identical  number  of shares with nominal value LVL 1. As of October 1,

2002, the debt outstanding to the World Bank was USD 3,734, 634.

2. Item 2 was not discussed.