OREANDA-NEWS. October 12, 2009. PROTEK Group of Companies announces audited consolidated IFRS (International Financial Reporting Standards) financial results of 2008. Main indicators of the Group and business segments: Consolidated proceeds of PROTEK Group of Companies in 2008 were USD 3.119 billion, increase in comparison with 2007 – 26% (USD 2.473 billion).

- Proceeds of Distribution and Service segment (key company – CJSC Implementation Center PROTEK) were USD 2.789 billion, increase in comparison with 2007 – 22% (USD 2.284 billion)

- Proceeds of Retail segment (key company – Rigla pharmacy chain) were USD 415 million, increase in comparison with 2007 – 77% (USD 234 million)1

- Proceeds of Production segment (key company – ZAO PharmFirma Sotex) - USD 118 million, increase in comparison with 2007 – 23% (USD 96 million) International audit of the consolidated IFRS reports of PROTEK Group of Companies was performed by PricewaterhouseCoopers, auditor’s report is positive and contains no provisos.

PROTEK Group of Companies has consolidated IFRS reports audited by an international auditor for a three-year period starting from 2006. Main factors of proceeds growth in 2008 in comparison with 2007:

- launch of the new logistic scheme of regional supplies of CJSC Implementation Center PROTEK

- intensification of operations with the diversified customer base of CJSC Implementation Center PROTEK

- increase of business efficiency, in particular – reduction of transaction costs and growth of labor productivity

- achievement of estimated capacity of interregional distribution warehouse centers.

Comment: Vadim Muzyaev, President of OJSC PROTEK (Head Company of the Group): “In 2008, notwithstanding unfavorable financial and economic situation in the 4th quarter of 2008, PROTEK Group of Companies demonstrated increase of proceeds as a whole and in main business segments. Yet before the beginning of crisis situation the management of the company started implementation of a number of measures aimed to increase of business efficiency. For us it was important in essence to keep the acceptable liquidity level and to insure financial risks. In our main segment, distribution, we optimized the model of regional supplies and intensified operations in all customer segments in order to minimize risks of defaulted payments from large pharmacy chains. In all main business segments we started decreasing transaction costs and increasing personnel productivity. In the result of this the Group achieved previously planned financial results in proceeds, strengthened its position in the pharmaceutical market of Russia, and the major company of the holding – Implementation Center PROTEK – took the first position in the distribution sector”.

Summary about the Group: PROTEK Group of Companies is the largest pharmaceutical holding of Russia. The Group has the diversified business structure and operates in all segments of the industry: production of medicine, distribution of pharmaceutical drugs and beauty and health products as well as retail sales. Key companies of the Group in business segments: national distributor of pharmaceutical drugs and beauty and health products Implementation Center PROTEK (industry leader), Rigla pharmacy network – second in Russia in indicators of turnover and number of outlets, manufacturer of medicines in accordance with the GMP standards PharmFirma Sotex.

Without proceeds of 03 pharmacy chain in 1st – 3rd quarters of 2007; proceeds of 03 chain were consolidated into the financial reports of the Group beginning from the 4th quarter.