Pharmacy Chain 36.6 announces acquisition of EMC

SEPTEMBER 11 2006, MOSCOW – Pharmacy Chain 36.6 [MICEX: RU14APTK1007; RTS: APTK] announces completion of its acquisition of European Medical Center (EMC) group of companies.

EMC is the leading medical multi-profile clinic on the market for high-quality medical services in Moscow. EMC focuses on four practices: medicine, surgery, dentistry and laboratory work. The clinic has over 50 full-time doctors who have international experience in both academic work and medical practice.

The clinic provides consultations and high-quality medical services from family medicine to surgery. The clinic has advanced Laser Surgery and Endoscopy practices. The clinic’s surgeons perform most complicated operations, including prosthesic arthroplasty and oral surgery. The clinic also operates a 24-hour ambulance service and emergency room.

The Dental Practice provides a full range of services from therapeutic dentistry to dental surgery, orthodontics and prosthodontics. The dental center also acquires unique technologies and recent developments in implantology, which are leading on the dentistry market today.

The Medical Laboratory handles nearly the entire spectrum of biological and chemical tests with the use of the most modern equipment.

EMC provides health care and medical services to both individuals and legal entities, which include embassies, leading Russian and international companies, as well as major insurance companies.

EMC expects revenues in 2006 to reach $20 million and EBITDA margin to be around 20%.

The financial terms of the transaction have not been disclosed.

Comments:

Sergey KRIVOSHEEV, Chairman of the Board of Directors, Pharmacy Chain 36.6:

“The decision to acquire EMC shares is in line with the Company’s strategy for diversifying its retail business. We are confident that our experience in creating a chain operator on the pharmaceutical market as well as with market consolidation and standardization is in high demand on the medical services market.”

Artem BEKTEMIROV, Chief Executive Officer, Pharmacy Chain 36.6:

“We are planning to make use of the retail technologies that we have created and the “healthy” 36.6 brand, as well as EMC’s high-class expertise to create a few more clinics in Moscow. However, we will not fully replicate the EMC format and we do not yet have any plans to open clinics in other Russian cities.”

Leonid PECHATNIKOV, Chief Doctor at EMC:

“We have built a team of doctors that is unique both in its make up and expertise. We welcome the new partnership and the growth opportunity it brings, which in my opinion, will further enable us to attract the best Russian and foreign medical specialists. Furthermore, I hope that EMC will become a crucial base for the development of health care professionals.”

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Press-release