Acquisitions in the Southern and Central Russia

JULY 18, 2007, MOSCOW – Pharmacy Chain 36.6 [MICEX: RU14APTK1007; RTS: APTK] announces the completion of four acquisitions of regional pharmacy chains.  As a result of these acquisitions Pharmacy Chain 36.6 has expanded by 78 pharmacies situated in four regions of the Russian Federation.

The total turnover of the acquired chains is estimated to have reached approximately $35.2 million in 2006.

Financial details of the acquisitions are not disclosed.

Moscow Business-Unit

Pharmacy Chain 36.6 has acquired the “ZemPharm” pharmacy chain. “ZemPharm” comprises 15 pharmacies located in Moscow.  The average area of the pharmacies is around 109 square meters, the turnover in 2006 reached $15 million. The integration and reformatting of the majority of the pharmacies acquired by the Company will take place in 2007.

Pharmacy Chain 36.6 has acquired the “Nasha Apteka” pharmacy chain. “Nasha Apteka” includes 37 pharmacies situated in Vladimir and Vladimir region. “Nasha Apteka” is the largest commercial pharmacy chain in the region. The average area of the pharmacies is approximately 79 square meters, the turnover in 2006 — $10.7 million.

Pharmacy Chain 36.6 acquired the “ASN” pharmacy chain. This chain includes 19 pharmacies located in Ivanovo and Ivanovo region. “ASN” is the largest commercial pharmacy chain in the region. The average area of each pharmacy is approximately 120 square meters, the turnover in 2006 – $6.1 million.

South Business-Unit

Pharmacy Chain 36.6 acquired the “Sigma” pharmacy chain, which includes 7 pharmacies in Krasnodar. The average area of these pharmacies is approximately 63 square meters, turnover in 2006 — $3.4 million.

The number of pharmacies of Pharmacy Chain 36.6 as of July 18, 2007:

*    The information on the number of pharmacies does not include the organic growth of Pharmacy Chain 36.6 in Q2 2007 and Q3 2007. 
**  Pharmacy chain “Zdravnik” (Yekaterinburg and Sverdlovsk region) – press-release as of June 27, 2007.

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

“The management of the pharmacy chain is following the Company’s plans for dynamic development in the regions this year. In July of this year we will celebrate the opening of the chain’s 1000th pharmacy. Today we are getting a strong start on operations in two regions in the central Russia that are new for 36.6 – the Vladimir and Ivanovo regions – and also expanding our presence in the capital and the Southern Russia.”

(PDF, 35,61 ÊÁ)

Press-release