12.11.1998, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMATSIATEHAS

ANNOUNCEMENT

12.11.98

 

ARREST OF THE FINISHED PRODUCTS

 

Last Friday, 06.11.98, a part of the finished product stock of Tallinna 

Farmaatsiatehas was arrested based on the application of Hansapank. The given 

action is in accordance with the measures planned by the two companies to 

secure additionally the liabilities of TFT to Hansapank in the amount of ca 

5.4 million EEK, which come from the factoring contract made in summer 1998.

 

The above-mentioned amount is 20% of the total stock of finished products in the 

factory's storehouses. Therefore, this operation does not have a significant 

effect on day-to-day economic activities of the company. There is a 

sufficient stock of finished products for sale in the storehouses of TFT, as well as

raw materials and other supplies in the amounts needed to continue running the 

production process smoothly.

 

A general public has not been notified about the above-mentioned action and other

activities between the two companies due to the reason that in the opinion of 

the parties, the business interests of the third parties are not harmed and 

the disclosure of given transaction does not fall under the category of information 

which affects significantly the price of the company's shares.

 

Tallinna Farmaatsiatehase AS continues to produce and sell medicines. Also, a 

cooperation with the creditors and loan companies will go on.

 

 

Arno Kaseniit

Chairman of the Management Board

Tel. +372 6 120 201