Pharmacy Chain 36.6 further strengthens its positions in Southern Russia

Over the past year Pharmacy Chain 36.6 has increased its presence in the region by 2.5-fold and raised its market share in the city of Sochi to 30%

19 DECEMBER 2007, MOSCOW – Pharmacy Chain 36.6 [MICEX: RU14APTK1007; RTS: APTK] announces the completion of six acquisitions of pharmacy chains with a total of 29 pharmacies.  The turnover of the acquired pharmacies reached $18.8 million in 2006.  The financial details of the transactions are not being disclosed.

Pharmacy Chain 36.6 acquired pharmacy chains in the following cities of Southern Russia:

Sochi – Pharmacy chains AIR (5 pharmacies) and Shpil (5 pharmacies), situated in the city of Sochi and neighboring areas (Adler, Khosta, Lazarevskoye).  The total turnover of these chains in 2006 amounted to $4.2 million, which is about 20% of the total market sales. The average floor space of the pharmacies is approximately 60—70 sq. meters.

Novocherkassk – Pharmacy chain Alma, which comprises 11 pharmacies in the city of Novocherkassk.  The chain’s turnover in 2006 totaled $10.4 million, with floor space averaging 80—100 sq. meters per pharmacy.

Anapa – Pharmacy chains Pharmakon (4 pharmacies) and Ozon (2 pharmacies). The chains’ turnover in 2006 totaled $3.1 million, with floor space averaging 90 sq. meters for Pharmakon pharmacies and 40 sq. meters for Ozon pharmacies.

Novorossiysk – Pharmacy chain Kometa-A (2 pharmacies), which recorded a turnover of $1.1 million in 2006. The average floor space of the pharmacies is approximately 100—120 sq. meters.

At present an internal audit is underway and the chains are being integrated into Pharmacy Chain 36.6.  Following the audit a decision will be made on the rebranding and reformatting of the acquired pharmacies.

Number of pharmacies of Pharmacy Chain 36.6 by Business Unit as of 19 December 2007:

*   Data includes the organic net growth (newly opened pharmacies) of Pharmacy Chain 36.6

Commentary

Jere Calmes, President, Pharmacy Chain 36.6:

“The acquisition of new chains in the capital of the Black Sea coast, the city of Sochi, and other cities in Southern Russia substantially strengthens our positions and provides us with a dominating presence not only on the coast.  Over the past year we have succeeded in increasing the presence of Pharmacy Chain 36.6 in the region by 2.5-fold and raising our market share in Sochi to 30%.  Today Sochi is one of the most dynamically developing and appealing regions for investment, which is strategically important to the further development and geographic expansion of Pharmacy Chain 36.6.”

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Press-release