36.6 expands its business throughout Russia

SEPTEMBER 14 2006, MOSCOW – Pharmacy Chain 36.6 [RTS: APTK; MICEX: RU14APTK1007] announces the completion of a number of pharmacy chain acquisitions. During Q3 2006, a total of 4 chains comprising 162 pharmacies were purchased. The expected turnover of the acquired pharmacies in 2006 will amount to approximately $95 million.

The financial terms of the deals are not being disclosed.

Moscow

Pharmacy Chain 36.6 acquired the pharmacy chain POS-Holding. This chain includes 79 pharmacies located in major retail outlets in Moscow, the Moscow region and St. Petersburg (2 pharmacies). The average area of each pharmacy is approximately 55 square meters. The majority of the acquired pharmacies will be converted into stores with an open retail layout and rebranded into 36.6 Pharmacies. The integration of the acquired pharmacies and their rebranding is expected to be complete by the end of 2007.

Rostov-on-Don (Southern Russia)

In August 2006 in Rostov-on-Don, Pharmacy Chain 36.6 completed the transaction to acquire the pharmacy chain TriPharma, which includes 31 pharmacies and the largest pharmacy chain in the South of Russia. The pharmacies are situated in Rostov-on-Don and Taganrog. The average area of each pharmacy is approximately 70 square meters. We estimate that the TriPharma chain has a 30% share of the market in Rostov.

Novosibirsk (Western Siberia)

Pharmacy Chain 36.6 acquired the pharmacy chain PharmaMedika, which comprises 3 pharmacies. The average area of the chain’s pharmacies is approximately 90 square meters. With the completion of this deal, the total number of pharmacies in the Company’s West Siberia Business Unit is now 22.

Orenburg (Sothern Urals)

Pharmacy Chain 36.6 acquired the pharmacy chain Vita+, which includes 47 pharmacies situated in Orenburg (22 pharmacies) and other cities in the Orenburg region. The average area of the chain’s pharmacies is approximately 80 square meters. Vita+ is the largest private pharmacy chain in the region, occupying around 25% of the market. The management of the acquired pharmacies will be carried out through the Orenburg office under the auspices of the Volga Region Business Unit of Pharmacy Chain 36.6.

The number of pharmacies of Pharmacy Chain 36.6 as of September 14, 2006:

* The information on the number of pharmacies does not include the organic growth of Pharmacy Chain 36.6 in Q3 2006. Detailed information on the operational results of Pharmacy Chain 36.6 in Q3 2006 will be announced on October 12, 2006.

Comments:

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

“We are at the forefront of the consolidation process of the pharmacy market in Russia. Pharmacy Chain 36.6 is following a strategy of geographic expansion of our business in the most promising regions of the country. Over the past 2 months we have acquired over 150 pharmacies. We also plan to continue expanding our presence in the cities of the Urals region as they are among the most dynamically developing cities in the country.”

Artem BEKTEMIROV, Chief Executive officer, Pharmacy Chain 36.6:

“Pharmacy Chain 36.6 has greatly solidified its presence on the Moscow market, the Company’s traditional stronghold. We also acquired pharmacies in Rostov-on-Don and West Siberia, where our first pharmacies opened in 2005. In addition, we are completing the acquisition of the Vita+ chain and are bringing the standards of Pharmacy Chain 36.6 to Orenburg.”

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Press-release