Profit and sales of JSC „Olainfarm“ increase significantly


Profil and loss calculation of JSC „Olainfarm” for the results of company's
operations in first quarter of this year shows that company's sales have again
increased by 26%, while net profit is more than three times of that of net
profit of first quarter of 2006. Further improvement of financial results is
yet another confirmation of company's successful operations in Latvian and
foreign markets, where it constantly increases sales of its products. 

Olainfarm's Profit and loss calculation for the first three months of 2007
shows that the sales of the company were 4.67 million lats (6.65 million
Euros), which by 25,8% exceeds the sales during similar period one year ago (
3.71 million lats or 5.28 million Euros).  After tax profit of the company
during the first quarter was 501 403 lats (713 432 Euros) which is more than
three times the net profit of a first quarter of 2006 when it was 154 500 lats
or 219 833 Euros.  Company's financial results for the first quarter also
exceed company's forecast sales and profit for this period. The forecast sales
for the first quarter were 4.6 million lats (6.55 million Euros), for the
entire year 20.5 million lats (29.2 million Euros), whilst the forecast net
profit for the first quarter was 430 994 lats (613 249 Euros) and for the
entire year 1.68 million lats (2.39 million Euros). Full set of unaudited
financial reports for first 3 months of 2007 will be published until the 22nd
week of 2007. 

"I think that this year and the next year will be the years of the one of the
most rapid growth in history of „Olainfarm“.  We have taken our time to make a
big step in company's development - we have created a worldwide network of
cooperation partners, ensuring the constantly growing sales, we have
established a very modern system for research and development, working at
creation of new medicines, we have taken care of company's reputation and of
course of our employees too.  We are planning to start construction of a new
production facility this year, we are working at introduction of new medicines
to the market, we are preparing ourselves for accomodating several new
production orders from our foreign partners.  The company plans to invest some
18 million lats (25.6 million Euros) in its development over the course of next
few years, and that will be the basis for increase of company's international
competitiveness over the next 10 years ", Mr Valerijs Maligins, Olainfarm's CEO
says. 

The Strategy for company's further development includes the continuation of
increase in sales volumes as well as improvements to the existing product
potfolio with new products. It is planned that the forecast sales of 2007 worth
20.5 million Lats (29.2 million Euros) will be achieved through both, increase
in production and sales in finished forms and chemical products. In 2007
contracts have been signed that enable Olainfarm to use intellectual property
with a regard to new products and that is yet another item that will ensure
more rapid growth possibilities for Olainfarm. 

In 2007 Olainfarm's cooperation with international pharmaceutical companies
will be actively continued, not only as a supply of chemical products (e.g. to
British branch ”Novartis Grmsby Limited” of Swiss pharmaceutical company
„Novartis”), but also as development and sales of finished form medications to
the world market (e.g. memantine for treatment of Alzheimer's disease). 

In Olaine, on April 26th, 2007

Information prepared by:
Salvis Lapinsh 
JSC „Olainfarm“ Deputy CFO
mobile +37126448873
e-mail: slapinsh@olainfarm.lv