JSC Grindeks                                                   07.06.2005



Information on JSC Grindeks to Riga Stock Exchange              



On June 6, JSC Grindeks has submitted its application at the Industrial 

Development Agency (IDA) of Poland expressing an interest to purchase the 

share capital of the pharmaceutical company Jelfa S.A. Grindeks claims to 

purchase the share stock making 47, 35% of total Jelfa’s share capital 

owned by the State institutions.



As it was stated before, in the moth of April JSC Grindeks as a potential 

investor received a letter from IDA inviting to take part in the process 

of privatization of Jelfa’s share capital belonging to the State institutions. 

JSC Grindeks after having reviewed the proposal, has taken a decision to claim 

for purchasing the stock capital of Jelfa. The information being at our 

disposal, Grindeks is one of the several claimants, who have thus far 

expressed an interest in buying the shares of the above mentioned Polish 

company.



The decision of Jelfa’s share capital acquisition was taken in compliance with 

Grindeks long term strategies regarding the establishing a strong holding 

company and the extension of activities in Baltic States and Europe.



Acquiring a significant number of shares of Polish company, the opportunity 

presents   to extend the joint product portfolio, making use of the scientific 

technologies potential of Grindeks, by successfully combining the capacities 

of the active pharmaceutical ingredients production unit with the final dosage 

forms production capacities of Jelfa, particularly regarding the injections 

and ointments. The incorporation of company Jelfa in the pharmaceutical holding 

company of Grindeks would allow to expand in new markets and to supplement the 

offer of products in existing markets.



Grindeks has already established a fruitful cooperation with Jelfa in year 2004, 

the subject of agreement between both companies was the contract manufacture 

of the injection forms of the Mildronate - original product of Grindeks.



JSC Grindeks is looking forward to the response of IDA, and in case of further 

convention, will inform Riga Stock Exchange about all the respective terms 

and conditions of the bargain in compliance with the Riga Stock Exchange 

listing and disclosure rules.



Information prepared by:

Jānis Romanovskis,

Finance and Administrative director

JSC Grindeks

Tel: 7083250

e-mail: jromanovskis@grindeks.lv