JSC “Olainfarm” in emission of shares receives the proposals in the amount of 2.5 million lats

JSC „Olainfarm”						June 13th, 2007.
 
JSC “Olainfarm” in emission of shares receives the proposals in the amount of
2.5 million lats 

In emission of a/s „Olainfarm” shares there has been received the applications
of 34 investors for 870 023 shares of the proposal. This morning the Board of
a/s „Olainfarm“ took the decision to approve the emission results in the actual
signed amount and set one share price at LVL 2.95, and initiate the company
shareholders to approve the necessary amendments of the Company Articles. Thus
the company will attract more than 2.5 million lats for company long-term
development. 

„Emission of shares is one of the most ambitious projects realized by
„Olainfarm“ within the last ten years. I am delighted that in spite of quite
negative informative fund in relation to the events in the environment of
Latvian macroeconomics, the company shares have been purchased in total by 34
investors, mainly from aboard. I am sure that this is a deliberative and clear
decision from those investors since at the moment „Olainfarm“ is in the process
of rapid growth,“ admits Chairman of the Board of a/s „Olainfarm“ Valērijs
Maligins. 

Emission of a/s „Olainfarm“ shares has been realised with the aim to attract
means which are planned to invest till 2012 in establishment of new ampulla
factory, research and development of investigation of new products, as well as
expansion of warehouse of ready-made medicine forms, raw materials and
packaging materials. Funds attracted during the emission of shares allow
financing first two steps of the development plan. Further steps of the company
development plan after the decision of the company management and shareholders
will be supported from such alternative sources of fund attraction as
additional crediting, EU funds or strategic partnership. 

Deputy Finance Director of a/s „Olainfarm“ Salvis Lapiņš comments the emission
results: „The fact that all proposed shares on the share auction were not sold
was not a big surprise for me since in the presentations of our companies to
the potential investors aboard we felt that they got clear understanding about
future plans of „Olainfarm“, however not always investors were sure about the
ability of Latvia's economics to maintain its attraction in long-term.
According the information I have several large foreign pharmaceutical companies
decided to wait due to this reason. I am sure that as soon as the situation in
Latvia's economics gets more stable, we will be able to continue the discussion
strategic partnership with several investors. Moreover one should admit that
the company is not ready to discuss the possibility to sell bigger share
package for one strategic investor, - interest about such possibility has
arisen in several meetings during the presentations within the road show of the
company. 

Emission proposal for local and foreign investors was realised by its organiser
- a/s "Parex banka". Head of Division of Investment Bank Services of a/s „Parex
banka“ Mārtiņš Jaunarājs adds: „Olainfarm“ is a company with a good product
portfolio and future development plans, and the resources attracted in the
result of the emission will allow realization of the plans already this year.
In our opinion, improvement of activity indicators the company starts
demonstrating will persuade financial investors and attract more attention to
„Olainfarm“ shares in secondary market“. 

Olaine, June 13th, 2007.

Information prepared by:
Salvis Lapinsh
Deputy CFO 
Mobile +37126448873
E-mail: slapinsh@olainfarm.lv

Sigita Lapsina
JSC „Olainfarm“ PR representative 
Mobile  +37126377286
e-mail: sigita@hkl.lv