Moscow, 23 January, 2008 - OJSC “Pharmstandard” (LSE: PHST LI, RTS: PHST RU) and JSC “Grindeks”, Latvia, announce signing of long-term collaboration Agreement. According to Agreement “Pharmstandard” will accomplish exclusive distribution and promotion of Mildronate® preparation in Russian Federation form 01 February 2008. Agreement anticipates possibility of the drug production at “Pharmstandard” facilities. Mildronate® is one of the TOP-20 products in the commercial segment of Russian pharmaceutical market. During the last three years period Mildronate® sales demonstrate stable growth which significantly exceeded all market growth. According to “Pharmexpert” data its 9 month 2007 sales makes up US$30 million. CEO of “Pharmstandard” Igor Krylov commented:“This deal is strategically important for both sides. Mildronate® effectively enlarges “Pharmstandard” cardio portfolio, significantly increases revenue and contributes to company's financial result. “Grindeks” receives access to powerful professional promotion resources of “Pharmstandard””. Chairman of the Board of “Grindeks” Janis Romanovskis said: „I am very satisfied with the mutually beneficial Agreement. Mildronate® is currently the leading pharmaceutical product of “Grindeks” portfolio, and granting its exclusive sales and marketing rights to one of the leading Russian pharmaceutical companies “Pharmstandard” will substantially ease the organisation of the product's distribution and marketing and will significantly increase Mildronate`s® sales amounts in the Russian pharmaceutical market.” Notes to Editors: Overview of "Grindeks" JSC “Grindeks” is the leading pharmaceutical company in the Baltic States. Its main fields of action are: research, development and manufacturing of brand products, generics and active pharmaceutical ingredients. “Grindeks” specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups. A range of Grindeks's products covers a successful combination of original products and generics, with the original products Mildronate® and Ftorafur® and more than 100 forms of effective and safe generics included therein. “Grindeks” concern consists of four subsidiary companies in Latvia, Estonia and Russia, as well representatives and representative offices in fourteen countries. Products of the company are exported to more than 40 countries and its export comprises more than 92% of the total turnover. The main markets are: the Baltic States, Russia and CIS countries, Japan, USA. “Grindeks” shares are listed in the Official List of “Riga Stock Exchange”. www.grindeks.lv Overview of "Pharmstandard" “Pharmstandard” is the leading domestic pharmaceutical company in Russia and the third largest pharmaceutical company operating in Russia overall, by sales value. “Pharmstandard” is a leader of the biggest commercial segment of the Russian pharmaceutical segment. The Company develops, manufactures, markets and sells generic and, to a lesser extent, original pharmaceutical products in various formulations, primarily in Russia. Pharmstandard's product portfolio includes market-leading brands (6 brands among top-20 best selling domestic brands in Russia), such as Arbidol® (antiviral for systemic use), Pentalgin® (analgesics), Terpincod® (cough and cold), Complivit® (vitamins), Codelac® (cough and cold) and Flucostat® (antifungal). In H1 2007, Arbidol® was the largest selling pharmaceutical product, by sales, at the Russian pharmaceutical market, according to data by “Pharmexpert”. “Pharmstandard” has limited exposure to the Russian Government's Federal Reimbursement Programme, through which 4% of its pharmaceutical product sales were made in H1 2007. In August 2006, the Company acquired “Masterlek”, a Russian pharmaceutical company focused on the antiviral for systemic use and antifungal therapeutic segments. This acquisition was in line with Pharmstandard's corporate strategy to expand its market position in Russia through acquisitions that complement the Company's product portfolio. “Masterlek” contributed approximately 30 products to the Company's product portfolio, including the market-leading brands Arbidol® and Flucostat®. “Pharmstandard” operates five manufacturing facilities in Russia and, with a production capacity of 1,070 million packs as of December 31, 2006, has one of the largest production capacities among domestic pharmaceutical companies in Russia. The Company has invested approximately RUR1.6 billion in capital investments in its manufacturing facilities since the start of 2004. Pharmstandard's flexible production capacity distinguishes it from its competitors by allowing it to quickly and efficiently adjust production based on input from its distributors and sales force. In addition to its pharmaceutical business, the Company also develops, manufactures, markets and sells medical equipment, such as sterilizing and distilling machines, and disposable medical products, such as syringes. www.pharmstd.ru Enquiries: JSC “Grindeks” Laila Klavina Head of Communications Departament Phones: (+371) 67083370, (+371) 29256012 E-mail: laila_klavina@grindeks.lv www.grindeks.lv OJSC “Pharmstandard” Olga Leschanskaya, Phone: +7 495 970 0030 E-mail: pr@pharmstd.ru Maksim Stetsuk E-mail: mvstetsuk@pharmstd.ru www.pharmstd.ru