In  compliance  with  JSC  "Grindeks"  Management Board resolutions and

agreement  with  Tallinn  Pharmaceutical  Co.  on  August  3,1999  loan

agreement  between  JSC  "Grindeks"  and Tallinn Pharmaceutical Co. was

signed.  Agreement  determines  that JSC "Grindeks" has Hansabank legal

claim  rights  towards  Tallinn  Pharmaceutical  Co.  Signed  agreement

includes fixed loan amount as well as schedule for repayment of loan.