Eastern European Markets
June 27, 2005

Follow-on offering of Grindeks pharmaceutical company completed

Suprema Securities is pleased to announce that it has successfully completed the LVL 12,765,000 (EUR 18.16 million) follow-on Offering (the “Offering”) of Latvia’s Grindeks, the leading pharmaceuticals manufacturer in the Baltics. The Offering represents a landmark for Latvian equity markets as it was the first capital raising follow-on offering by a listed corporate. Suprema Securities acted as Global Co-ordinator of the Offering.

The Offering consisted of 1,850,000 new shares which were offered in an institutional placement to institutional investors. Existing shareholders had preferential rights to subscribe for the shares. The newly issued shares are expected to be listed and start trading in Riga on or about June 29.

Approximately 39% of the demand was generated European investors, 38% by Nordic and 23% by Baltic investors. New investors accounted for approximately 74% of the demand. Existing Grindeks shareholders placed orders for 26% of the Offering, including Mr. Kirovs Lipmans, the largest single shareholder of Grindeks.

The deal was priced at LVL 6.90 per share, at the bottom of the LVL 6.90 – 7.90, on Tuesday, June 21, representing 1.45% discount to Grindeks’ closing price of LVL 7.00.

"We at Grindeks are very pleased that the transaction was successfully completed," pointed out Valdis Jakobsons, Chairman of Grindeks Management Board. "The new funds open up a lot of possibilities for us. As stated before, we intend to use the funds for investment in developing our product portfolio and
expanding our presence in export markets. This may imply acquisitions by Grindeks." Sten Sumberg, Head of Markets at Suprema commented: “This transaction proves that there is a market for follow-on deals from the region. We believe that follow-on and secondary offerings will become much more frequent from the region.”

Grindeks is the largest Baltic pharmaceuticals manufacturer with sales of LVL 24.7 million (EUR 36.8 million) and net profit of LVL 2.5 million (EUR 3.7 million) in 2004. Grindeks manufactures and markets both final dosage forms and active pharmaceutical ingredients. Its comprehensive portfolio includes products originally developed at Grindeks, in addition to generic forms, and comprises both prescription and OTC pharmaceuticals. The most important product in Grindeks’ portfolio is Mildronate®, an original drug developed for treatment of heart and vascular diseases. Key markets for Grindeks are the CIS and Baltics. AS Suprema Securities is the wholly-owned Baltic subsidiary of Evli Bank plc, a leading Nordic investment bank. Suprema is the market leader in equities and corporate finance in the Baltic states, where it plays a major role in promoting local capital and M&A markets.

For further information
Vitolds Jakovlevs, Director, Corporate Finance, Suprema Securities
+371 735 7121
Sten Sumberg, Head of Sales and Trading, Suprema Securities
+372 6405 783

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