Profit of Olainfarm in 3 months reaches 1 million euros, export increases to 95%

Profit of JSC „Olainfarm” during the first quarter of this year has reached 0.7
million lats (1 million euros), but the sales exceed 6.1 million lats (8.6
million euros).  For Olainfarm this has been the best ever beginning of the
year (first quarter) and it can be explained with significant increase in
exports, today 95% of company's sales are made abroad.  In some export markets
the sales increase exceeds 100%, but in Uzbekistan Olainfarm's sales have grown
even by 1500% compared to the first quarter of 2009. 

“Because of work we did for product promotion, introduction and for entering
new markets, the first quarter of 2010 has been historically best beginning of
the year for Olainfarm's financials.  We are particularly glad to be performing
so well in the countries of Central Asia: Uzbekistan, Kyrgyzstan, Kazakhstan
and Tajikistan.  Sales to these countries have grown particularly strongly and
this gives me the reason to say that Olainfarm now has caught the wave of
growth”, says Valerijs Maligins, Chairman of the Board of Olainfarm. 

During the first quarter of 2010 sales of Olainfarm have grown by about 10%,
but profit by 50% compared to the first quarter of 2009. 

Sales to some export markets have been growing particularly strongly in the
first three months of 2010.  Some untypical sales markets, like the UK and
Australia have appeared among Olainfarm's top 10 countries during this period. 
The biggest sales growth was experienced in Uzbekistan, where the sales grew
very considerably - by 1 457%.  Kyrgyzstan, despite political unrest in this
country, has shown the increase by 192%, Kazakhstan by 117%, Tajikistan by 60%,
Azerbaijan by 25%, Russia by 15%, Belarus by 12%, and Ukraine by 10%.  This
resulted in Belarus becoming the third biggest market for the Company (after
Russia and Ukraine) and exports increasing to 95% of the total sales. 

During the 1st quarter of 2010 7 registration cases have been finished,
including registration of company's new product Midolat® in Latvia,
registration of ampouled form of Vazonat® in Ukraine and registration of 5
products in Albania.  This market is completely new for the Company and the
first shipments to this market are planned for the nearest months.  Also
several registration files have been submitted to other markets that are
untypical for the company, including Indonesia and Serbia.  During the
reporting period pilot tests of R-Fenotropil have also been successfully
completed and the work has been launched to identify the optimal drug form for
this molecule. 

Annual General Meeting of Shareholders of „Olainfarm” held on April 29, 2010
approved the operating plan of the company.  According to it, the forecast
sales of Olainfarm for 2010 are 24.5 million lats (34.9 million Euro), but the
net profit is forecast at 2.7 million lats (3.8 million Euro).  Sales of the
Concern during the first quarter of 2010 were 24% of the annual target, while
the net profit was 26% of it.  Therefore, during the first quarter the company
has been rather precisely following its annual forecast. 


________________________________________
AS „Olainfarm“ is one of the largest companies in Baltic countries with nearly
40 years of experience in production of medicines and chemical and
pharmaceutical products. The key principle of company's operations is to
produce reliable and effective top quality products for Latvia and the rest of
the world.  Currently products of “Olainfarm” are being exported to more than
30 countries worldwide, including the Baltics, Russia, other CIS, Europe, North
America, Asia, and Australia 

Information prepared by
Salvis Lapins
JSC "Olainfarm"
Member of the Board
tel. +371 6 7013717, 
Cell: + 371 2 6448873
Fax. + 371 6 7013777
slapinsh@olainfarm.lv
E-mail: slapinsh@olainfarm.lv