Annual shareholders meeting has taken place in Moscow

ÎÀÎ Pharmacy Chain 36.6 reported 2004 financial results and 2005 first quarter financial results under IFRS

Sales

Consolidated 2004 sales at Pharmacy Chain 36.6 were USD211 million, up 43% over 2003.

In 2004, net sales grew by 64% y-o-y in the pharmacies following opening of 53 new stores and acquisitions of regional chains. Same stores sales grew steadily by 9.7% in line with market growth.

1Q sales were 51% higher than a year before.

In 2004, net sales reached USD60 million at Veropharm, the Company’s generic pharmaceuticals subsidiary. Veropharm’s 1Q shipments under the government reimbursement program led to a 24% sales increase compared to Q1 2004.

Profits

Retail gross margins are on an uptrend in existing markets due in part to overall market growth, but also because of a broader range of products available at 36.6 retail stores and the increasing number of consumers who prefer higher-quality products. Q1 2005 reduction in retail gross margins is due to recent entry by 36.6 into new regional markets.

Veropharm’s EBITDA increased by 12% in 2004, rising to USD17 million. The 1Q 2005 result was 60% higher than in 1Q 2004.

The Company’s operating profits continue to be impacted largely by new pharmacy openings. In 2004, 53 new stores were opened, with another 18 in Q1 2005. However, retail EBITDA in 2004 was USD6.5 million more than 3.5 times higher than the previous year, with a margin increase from 2.3% in 2003 to 4.8% in 2004.

Net income for all operations was USD725 000, down by 31% due to new borrowing and interest expenses increased by approximately 29%.

2004 Investment and Other Results

Pharmacy Chain 36.6 made investments of USD44.7 million last year to open stores, rebrand stores of acquired chains in Bashkortostan, Nizhny Novgorod, and Ulianovsk, as well as into production and real estate.

The Company refinanced all of its short-term loan and borrowed an additional USD37 million in short-term loans in 2004. Total debt reached USD80 million at the end of 2004. An additional USD6 million in debt was obtained in Q1 2005.

Total assets increased by 52% in 2004.

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Press-release