Successful Half-Year Results For Lek

Increased sales in key markets – Sales growth rate of the Lek Group higher than that of the parent company – Lek will pay out dividends in early September

12. 7. 2001

Ljubljana, 12 July – In the first half-year of 2001 the Slovenian pharmaceutical company Lek d.d. (Lek) had sales of SIT 34.5 billion which is a 26% growth compared to the same period last year, and 55% of the planned sales for the current year. The sales growth of the Lek Group is 36%, also due to the successful investment in Romania.

In Slovenia, Lek’s largest market, the sales increased by 8%. The highest sales growth in the first half-year was achieved in the Russian Federation (47%), in Croatia (42% ) and in Poland (34%). A high sales growth was achieved in the top ten markets where Lek makes approximately three quarters of its total sales.

Lek’s major markets continue to be Slovenia with a 21.6% sales share, followed by Poland with a 16.8% share, the Russian Federation with 9.3%, Croatia with 8.8% and the Czech Republic with 3.7%.

Most of all it is important to note that in the first half-year an outstanding sales growth was achieved by the Lek Group, i.e. 36%, which already in the first half-year indicates the positive effects of the purchase of the Romanian pharmaceutical company PharmaTech included in the group in January this year.

The sales share of pharmaceuticals, our leading program, amounted to 82.7% in the first half-year. The program of pharmaceuticals is also the one with the highest sales growth (27%). The sales of animal health products increased by 26% , OTC products by 23% and cosmetic products by 14% compared to the same period last year.

Lek is pleased to announce to its shareholders that its ambitious plans for the first half-year were fully implemented. Based on good sales forecasts for the second half-year we are optimistic in our expectations that the business objectives for the year 2001 will be exceeded. We wish to notify our shareholders that the dividend pay-out for the year 2000 will start in early September.