In the first quarter Lek exceeded its objectives

The highest sales growth in Poland, Croatia and Russia – Exceptional sales growth of Lek’s top product Amoksiklav – Lek will propose to the Annual General Meeting payment of a dividend of SIT 800 per Lek A-Class share

14. 6. 2000

Ljubljana, 13 June – Lek realized sales of SIT 14 billion in the first quarter of the present year, thereby exceeding sales objectives set for this period and achieving 13% sales growth compared to the same period of the previous year. Lek’s sales increased in the key foreign market i.e. Poland, namely by 14%. Equally, Lek’s sales increased in Croatia (14%) and Russia (92%); in the latter market Lek managed to achieve exceptional sales growth by means of effective and systematic business operations despite the unstable macroeconomic environment.

Also in the first quarter of the present year Lek achieved exceptional sales growth (32%) with its top product Amoksiklav which was launched successfully on the demanding EU markets. Furthermore, Lek achieved sales growth also with the following three top products (Ketonal by 37%, Amlopin by 12%, Olivin by 9%).

In the domestic market in the first quarter Lek realized sales of SIT 3.5 billion (accounting for 24.8% of Lek’s total sales), in the Central and East European countries the sales reached 26.1% of total sales, in the countries of the former Soviet Union 12.8%, in Croatia and Bosnia and Hercegovina 10.7%, in developing countries 10.3%, in developed countries 7.7% and in South-Eastern Europe 7.6% of total sales.

In the first quarter of the present year as well, Lek realized most of its sales in the domestic and key markets which indicates even distribution of Lek’s sales across the most important markets.

In its sales structure, Lek increased the share of prescription drugs and self-medication products which confirms strategic orientation of the company towards its basic activity. The largest share in Lek’s total sales is accounted for by prescription drugs for human use, namely 90% (of which 70.7% is accounted for by pharmaceutical products, and 9.8% by pharmaceutical active ingredients), followed by self-medication products (OTC) to the amount of 9.5%, animal health products 4.7%, cosmetics 3.7% and medical devices 1.6%.

In 1999 Lek created a net profit of SIT 3.12 billion. This enables the company to pay dividends to the gross amount of SIT 800 for an ordinary share which Lek will put forward as a proposal to this year’s General Meeting.

For the present year Lek is planning sales of SIT 52 billion which accounts for 12% growth compared to the previous year. Lek is aware that the shareholders attach primary importance to stable growth of sales and profits which is the major starting point for the company’s business operations in the present year as well as in the future.

This press release contains the statements and forecasts of Lek’s future business operations. The forecasts feature the assessments formed on the basis of all the information currently available. Should these forecasts turn out to be unreliable, the actual business results would be different from the anticipated.