Company owned by Helmuts Balderis-Sildedzis becomes a second biggest shareholder

15/07/2009

Company owned by Helmuts Balderis-Sildedzis becomes a second biggest shareholder
of Olainfarm


In July 2009, a company “HB19 Investments” owned by Helmuts Balderis -
Sildedzis purchased 3 686 014 shares of Olainfarm from Mr. Juris Savickis, who
has so far been the second biggest shareholder of Olainfarm. Thus Mr. Balderis
- Sildedzis has indirectly become the owner of 26.17% of Olainfarm.

Because Mr. Juris Savickis is no longer a shareholder of Olainfarm, earlier
this month he submitted his resignation from the position of Member of the
Supervisory Council. Representative of the new second biggest shareholder Mr.
Helmuts Balderis – Sildedzis has now been elected to the position of Chairman
of the Supervisory Council.

New Chairman of the Supervisory Council of Olainfarm had this comment regarding
the transaction: “After studying the growth demonstrated by Olainfarm during
the recent years and seeing their plans for the future, I am convinced that the
company will be able to ensure the growth of its value. Olainfarm has been
very committed to increasing its exports, to strengthening its positions in
foreign markets and thus has proven that it is a company with one of the
biggest export potentials in Latvia. Everything I said before combined with
what I find an attractive share price was enough of motivation for me to make
an investment which in these times could be regarded as significant and even
somewhat courageous”.

To this Mr. Juris Savickis, President of SIA “Itera Latvija”, had this to add:
“Despite the fact that at this moment the stock markets worldwide and in Latvia
in particular are not at their peak, I think I have made a very good returns on
my original investments in Olainfarm#ins_quot2#s shares. As you may know, my primary
interests at the moment are related to the energy sector.”

Olainfarm#ins_quot2#s unaudited profit and loss account for the first quarter of 2009
shows that the net profit of the company has increased by more than 1 million
Euro, while EBITDA has nearly tripled. Net consolidated profit of the company
in that period was 465 713 lats (662 650 Euro), EBITDA – 1 204 787 lats (1 714
257 Euro).

JSC Olainfarm is one of the biggest companies in the Baltic States with more
than 35 years of experience in production of medicines and chemical and
pharmaceutical products. The basic principle of Company#ins_quot2#s operations is to
produce reliable and effective top quality products for Latvia and the rest of
the world. Currently the products of JSC Olainfarm are being exported to more
than 30 countries worldwide, including the Baltics, Russia, CIS, Scandinavian
and other Western European countries, Asia and the USA.

Additional Information:
Salvis Lapins

JSC „Olainfarm“
Deputy CFO
Cell: +37126448873
e-mail: slapinsh@olainfarm.lv