JSC “Olainfarm” June 05th, 2007 Net profit of “Olainfarm” in four months of 2007 exceeds that of 2006 by 87% Profit and loss statement of JSC „Olainfarm” for the first four months of this year shows that net sales of company have grown by 25%, while the net profit in this period has increased by 87% compared to a similar period of last year. Improvement of financial results reflects „Olainfarm's“successful operations in Latvia and abroad as the company continues increasing its sales volumes. Unaudited and unconsolidated profit and loss statement of "Olainfarm" for the first four months of 2007 shows, that net sales of the company were 6,05 million lats (8,61 mill. EUR), which is an increase by 25% compared to the net sales in similar period last year, when they were 4,84 million lats (6,89 mill. EUR). Net profit in this period was 692 126 lats (984 807 EUR), which is an increase by 87% compared to the net profit in first four months of 2006 when it was 369 829 lats (526 219 EUR). "Company's financial results prove the strong basis for future development that the Company has. Net sales are continuously increasing by at least 25% per annum, and as we currently are actively working on new medicines, finished forms and markets, I am sure we are not going to slow down, but to grow even faster ", says Valerijs Maligins CEO of Olainfarm. In 2007 the Company plans to have net sales of 20.5 million lats (29.2 million EUR) and 1.68 million lats (2.39 million EUR) in net profit. Exports have grown significantly during these four months, especially to the Great Britain, Kazakhstan and Poland. In Latvia, in turn, according to the data of international market survey company „IMS Health“, “Olainfarm” in first quarter of 2007 was 6th biggest seller of medicines to Latvian pharmacies. Currently Olainfarm is publicly offering 4 million shares through the Book in Riga Stock Exchange. The Book will be closed at 14:00 on June 12. Resources obtained through the share issue will be used to create a new ampoule production facility, to study and develop new products and to increase warehousing capacities. Olaine, June 05th, 2007 Information prepared by: Salvis Lapinsh Deputy CFO, Olainfarm Mobile +37126448873 E-mail: slapinsh@olainfarm.lv