CEO of “Pharmstandard” Igor Krylov commented:

«The decision to buy Grindex  shares is based on long-term history of fair dealing between two leading pharmaceutical companies.» 

In January, 2008 Pharmstandard and Grindex signed agreement for exclusive distribution and promotion of Mildronate preparation in the Russian Federation. Total sales for period of cooperation exceeded about 2,3 bln RUB.

The production of Mildronate (ampoules)   at OJSC «Pharmstandard»  works is expected to launch in the second part of 2010.

For more information please contact to:

Ilya Krylov
IR manager
OJSC Pharmstandard
Likhachevsky drive, 5 «B» Moscow region,Dolgoprudny, Russia, 141700.  
Tel/Fax: (495) 970-0030/32
www.pharmstd.ru 
ir@pharmstd.ru

Vadims Rabša
Finance and Administrative director
Investor relations and financial issues
JSC «Grindeks» 
53 Krustpils St, Riga, LV 1057, Latvia 
Fixed: (+371) 67083500
www.grindeks.lv/en/
vadims.rabsa@grindeks.lv

About Pharmstandard:

Pharmstandard is the leading Russian pharmaceutical company. According to Pharmexpert Marketing Research Centre, it holds the top position in the domestic pharmaceutical market retail segment (preliminary data). Pharmstandard is the only Russian company among the top ten Russian pharmaceutical market operators.

Pharmstandard portfolio includes over 200 products used in the treatment of diabetes, growth hormone deficiency, cardiovascular diseases, gastroenterological and neurological disorders, infectious diseases, cancer, etc.  86 products offered by Pharmstandard are included in the List of Vital Pharmaceutical Products.

Pharmstandard products are well known to Russian consumers. Among our market-leading brands are Arbidol ®, Complivit®, Pentalgin®, Flucostat®, Codelac®, Phosphogliv®, Amiksin® and Afobazol®. Arbidol® is the leading brand on the Russian pharmaceutical market. Its antiviral action has been studied in international research centers. Pentalgin® has been granted “BRAND #1 IN RUSSIA” award for 2008 in analgesics category. Afobazol® - new original selective anxiolytic for anxiety disorders treatment.

Pharmstandard have agreements with Grindex, Latvia on exclusive distribution and promotion of Mildronate® (cardio-vascular) and with Solvay Pharmaceuticals, France on production of IRS19® and Imudon® (immunomodulating).

In 2004–2009, we developed and introduced around 40 new pharmaceutical products. Our business priorities lie in the development of new product lines comprising genetically engineered medicines, vitamin and mineral complexes, cold relief preparations and medicines used in the treatment of cardiovascular, gastroenterological, neurological disorders and endocrinopathies. Currently, the Company is working on the development of new high-tech formulations in close cooperation with the leading Russian research centres.

Pharmstandard operates three pharmaceutical manufacturing facilities in Kursk, Ufa, Tomsk and, with a production capacity of 1.3 billion packs per year. Six production lines of JSC «Pharmstandard-Leksredstva» meet GMP requirements. JSC «Pharmstandard-Leksredstva» is the first Russian pharmaceutical plant included in EudraGMP database. All plants meet Russian legislative requirements.

In addition to its pharmaceutical business, the Company also develops, manufactures, markets and sells medical equipment, such as sterilizing and distilling machines, and disposable medical products.

The Company has invested approximately RUR 3 billion in capital investments in its manufacturing facilities since 2004. Pharmstandard placed its shares on Russian Trading System (RTS) and GDRs on London Stock Exchange (LSE) during IPO in May 4, 2007. The current GDR to ordinary share ratio is 1:4. Augment Investments Limited controls 54.3% of share capital. Free float represents 45.8% of share capital (LSE – 27.6%, RTS – 18.1%).

www.pharmstd.ru

This press release does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of JSC Pharmstandard (the “Company”) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this press release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.