JSC "Olainfarm" May 23, 2007 JSC "Olainfarm" Begins Second Phase of Emission of New Shares JSC Olainfarm, together with financial consultants and organisers of share emissions for local and foreign investors - the Parex Bank - is continuing the offer of newly emitted shares to investors from European countries. Individual meetings have been held with dozens of interested financial and strategic investors in European and regional finance centres such as Warsaw, London, Geneva, Zurich, Moscow, Frankfurt, Vienna, Copenhagen, Helsinki and Stockholm. Particular interest has been demonstrated by investors in the Baltic States, too. “A week has passed since we held important individual meetings with leaders in the pharmaceutical industry and with financial and strategic investors. Potential investors displayed a great deal of interest in several aspects of the company's operations, particularly the latest and promising scientific work of Olainfarm - work that in the next few years will result in a rapid increase in the company's turnover and profits,” says the deputy finance director of Olainfarm, Salvis Lapiņš. Meetings with investors are continuing this week, too. It is planned that the presentation of offers will be concluded on May 29 in Rīga. During the presentations, representatives of the Parex Bank and Olainfarm talk to potential investors about the company, its operations, it present and future plans, the specific share offer, and the mechanism via which the shares will be sold. Investors wanting to take part in the bid for tenders must approach the securities division of their bank, because applications can only be submitted via the offices of members of the Rīga Stock Exchange. As has been reported in the past, the Finance and Capital Markets Commission decided on May 9 that Olainfarm is allowed to make a public offer of up to four million bearer shares and one million Olainfarm shareholder shares. Applications to purchase the shares were first accepted on May 11, and the process will continue until June 12. The Olainfarm board and the company's financial consultants predict that the share price of the newly emitted shares will be between Ls 2.95 and Ls 3.70. This forecast is based on the future of existing and anticipated Olainfarm products, as well as on the existing market situation. Statistics from the official list of the Rīga Stock Exchange show that over the last six months, the value of Olainfarm shares has increased by approximately 60%. The money that is received as a result of this emission will be invested in a new ampoule manufacturing line, in the necessary equipment, in the study and development of new products, and in expanding warehouses for prepared medications, raw materials and packaging materials. Information prepared by: Salvis Lapinsh Deputy CFO Mobile +37126448873 E-mail: slapinsh@olainfarm.lv May 23rd, 2007 Olaine