JSC  "Grindeks"  net sales in the first half of 2003 was LVL 9,539,046,

which  is by 22% more than in the respective period of 2002. Net profit

made during the period is LVL 935,226, whereas the respective figure in

the  first half of 2002 was LVL 977,309. Net profit margin in the first

half  of 2003 was 9.8%. Net sales have exceeded the expectations by 11%

or  LVL  959,553;  gross  profit  margin  in the first half of 2003 was

33.7%.  Company  management explains the increase of sales owing to the

company   ability  to  adjust  to  the  market  situation  and  to  the

competitiveness of the products in the world markets.



Sales of final dosage drugs, contributing 72.3% to Grindeks sales, have

increased  by  19%  compared to the figure of first six months of 2002.

This  has  been  attained  mainly  owing  to the increase of exports to

Russia  and  CIS.  The  sales  of active pharmaceutical substances have

increased by 38% compared to the respective figure in the first half of

2002.  New  export markets for active substances were opened in Brazil,

Uruguay  and  India.  The  continuously  increasing  demand  for active

substances is an evidence of good prospects for the product line.



The  sales of Tallinn Pharmaceutical Plant (TPP), a daughter company of

Grindeks specialising in ointment manufacturing, have dropped by 24% in

the  first  half  of 2003 in comparison to the respective period in the

previous  year.  The  drop  is  due  to  the closing down of tablet and

capsule  production  unit, because the company intends to specialise in

ointment manufacturing.



During  the  first  half  of  the year the company has been intensively

working  on  cost  optimisation,  to enable to invest in the production

units  with  the best prospects and to offer a wider range of products.

The  company  continues  seeking  for  co-operation  forms  with  other

pharmaceutical producers.