May 24, 2007 At a press conference today, mangers of the JSC “Olainfarm” received the company's ISO 14001:2004 certificate, which testifies to the company's compliance with environmental management requirements. The confirmation took effect on April 17 of this year, and the certificate was issued by the international Bureau Veritas Certification. ISO certification confirms the ability of “Olainfarm” to guarantee manufacturing of ready-made medications and chemical products in a way that is safe, effective and environmentally harmless. This is the third time since 2001 that “Olainfarm” has received the ISO 14001 certification for its environmental management system. “It is of key importance for “Olainfarm” to be a pharmaceutical firm that is environmentally friendly and technologically progressive. We're developing our business in line with European Union environmental requirements. We have made investments in new products, we have improved existing products, we have established and reconstructed manufacturing facilities, and we have promoted marketing activities, but we have also monitored and analysed the way in which our company's rapid development - development which has ensured turnover growth of an average of 30% per year - affects the surrounding environment. Over the next five years, “Olainfarm” plans investments of more than LVL 2.5 million in environmental projects,” says the deputy board chairwoman of the company, Jeļena Borcova. “Olainfarm” develops its environmental management system as an ongoing process, looking at the latest European Union norms and at new technological processes at the company itself. “Olainfarm” has environmental management initiatives which include a programme to develop technologies, a set of environmental protection projects, a programme at regenerating solvents so that they can be used again, a programme on replacing hazardous system, projects aimed at saving on raw materials, initiatives aimed at educating employees, and participation in the relevant public organisations. Environment Minister Raimonds Vējonis visited the “Olainfarm” facilities today and praised the work that has been done to improve environmental management at the enterprise. “The achievements of “Olainfarm” in this regard represent modern, far-sighted and responsible activities,” said the minister. Vējonis also said that he is pleased about the fact that this year a project related to sanation at a hazardous waste dump in the town of Olaine will begin. The project is being organised by the Environmental Ministry and has received financing from the EU's Cohesion Fund and from “Olainfarm”, as well. Sanation of the dump and purification of groundwater will continue under the auspices of the project until 2010. Aspects of environmental protection at “Olainfarm” include all-encompassing environmental monitoring, collection of medication dust in the manufacturing line for ready-made medications, saving on energy resources and separating waste. Regeneration and secondary use of solvents allows the company to save approximately Ls 2 million each year. Preparing to introduce the REACH regulation in a timely way, “Olainfarm” began a programme aimed at replacing hazardous substances and reducing the use of such substances in 2006. The company has reduced the use of benzene in the production of medications and no longer uses acetone and methylene chloride in medicine casings. “Olainfarm” will pursue several major projects to improve its environmental management system over the last five years. The most important is the introduction of an integrated risk management system, bringing together all aspects of product quality, finances, environmental concerns, job protection, job safety, industrial risks, new technologies, reconstruction of factories, as well as reconstruction of the factory's wastewater purification system. This umbrella project will cost around Ls 2 million. “Olainfarm” is also working on the establishment of a production line for active pharmaceutical substances, on expanding the factory's boiler house, and on reconstructing warehouses and establishing an ampoule manufacturing line in the next few years. This work will be financed with money, which “Olainfarm” will receive from the emission of four million shares of the company. “Olainfarm” received ISO 14001 environmental management certification in 2001. In 2005 and 2006, the company improved its environmental management system in accordance with ISO 14001:2004 requirements. The company established an Environmental Protection Division, trained its employees on quality management, best manufacturing practice audits and environmental management systems, created a new system to evaluate environmental aspects, risks and correspondence to normative acts, and identified the requirements of co-operation partners in the area of environmental protection. Introduction of the international environmental management standard is based on voluntary principles, and the goal of the ISO 14001 system is to establish an effective environmental management system at companies. The certificate confirms that the company is pursuing systematic and planned solutions of environmental issues and is in line with the highest environmental standards. Information prepared by: Sandra Krivmane Director, “Olainfarm” Environmental Protection Division Tel. +371-701-3784 skrivmane@olainfarm.lv