CEO Meets Investors

May 14, 2008Vilnius

Company Presentation

Olainfarm: at a glance

– Established in 1972, privatized in 1997;

– Listed on the 2nd list in 1997, in Main list since 2006; – Produces both FDFs and full cycle APIs;

– Annual sales have more than doubled over the past 4years;– Strong and seasoned management team;

– Experienced workforce;– Producing primarily branded and historically unique “generics”;

– ISO 14001 (2001:2007), FDA (USA - APIs only, 2002) and GMP (EU 2004:2007)

Governing Structure

• Shareholders meeting

• Council- Supervisory body, consists of 5 members, elected by

shareholders for 3 years- Elects and dismisses members of the Board

• Board- Executive body composed of 5 members elected for 3 years

Sales Development

46%

32%

28%

14%

-

5 000 000,00

10 000 000,00

15 000 000,00

20 000 000,00

25 000 000,00

30 000 000,00

35 000 000,00

40 000 000,00

2005 2006 2007 2008F

LVL

EUR

- Underperformance in 2007 due to:

- shipments moved to 2008; - registration delays in Poland;- insufficient marketing effort in some markets

- As new products approach, sales push-and-pull mechanisms to be strengthened in 2008

Main Markets- Main focus on home market andthe CIS;

- Diversification of markets;

- Over 400 medical representatives in key markets;

- Sales to 27 countries, subsidiaryin Russia;

- Rep-offices in Russia, Ukraine, Kazakhstan, Lithuania, Belarus, Poland, Azerbaijan, contracted agents in USA and Sweden.

Ukraine15%

Latvia20%

Russia 30%

Belarus8%

Poland2%

Georgia2%

Lithuania1%Kazakhstan

9% Bulgaria1%

United Kingdom 7%

Other countries 5%

Main Markets (continued)

- On average the sales grow faster than markets (about 15%)�

- Significantly stronger marketing effort in Russia, Ukraine and Belarus planned for 2008, preparing for new products

- Specific products influenced significant growth Kazakhstan in 2007

Sales Growth in Top Countries, LVL

-6% 78%

47%

4%

22%

167%5%

18%

17%

13%

-5%

57%

38%20%

44%

-

1 000 000,00

2 000 000,00

3 000 000,00

4 000 000,00

5 000 000,00

6 000 000,00

7 000 000,00

8 000 000,00

9 000 000,00

Russia Latvia Ukraine Belarus Kazakhstan

2005

2006

2007

2008F

Sales by Products in 2007 in % of Total Sales Value

Noofen13%

Neiromidin12%

Fenkarol11%

Furamag7%

Remantadine7%

MAG6%

PASA Sodium salt5%

Furagin5%

Other23%

Adaptol5%

Etacizin6%

Main Products

- Good diversification of products in portfolio

- Main emphasis on branded generics, historically unique to Olainfarm

- Optimization of product portfolio under way, three potential best-sellers to be added during nearest years

- Noofen: Nootropic drug, OF owns cost efficient synthesis; doubling of sales possible.

- Neiromidin: Cholinesterase Inhibitor, sales could be trippled, Balkans and South-East Asia in focus.

- Fenkarol: antihistamine with negligable side effects, unique to OF, continuous researchconducted to strengthen sales.

Key Products

Sales Development of Top 5 Products

Ls 0,00

Ls 500 000,00

Ls 1 000 000,00

Ls 1 500 000,00

Ls 2 000 000,00

Ls 2 500 000,00

Ls 3 000 000,00

Noofen Neiromidin Fenkarol Furamag Remantadin

2005

2006

2007

Key Products - Cont’dSales Development of Top 5 Products

Ls 0,00

Ls 500 000,00

Ls 1 000 000,00

Ls 1 500 000,00

Ls 2 000 000,00

Ls 2 500 000,00

Ls 3 000 000,00

Noofen Neiromidin Fenkarol Furamag Remantadin

2005

2006

2007

- Furamag: one of original nitrafurantoine derrivatives, unique to OF in the region; applied to treat uninary infections, sales could be trippled.

- Remantadine: Antiviral, very seasonal, sales depend on outbreak of flu.

- New products expected to alter this list soon

Key Products –Cont’d

New Products – Current Status

Vasonate ® (Meldonium)

- Generic drug for treatment of cardio vascular diseases,

original among TOP 15 best selling drugs in Russia and TOP 3 best seller in Ukraine

- Current status: Registration files are being finished, bioequivalence tests started in Ukraine

- Expected launch: late 2008/ early 2009

statNew Products – Current Status

Olvazol ®

- Patent protected next generation of Meldonium

- Fast acting drug for prophylaxis and treatment of ischemic heart and brain injury and infarction

- Current status: undergoing stability tests, clinical trials are being prepared

- Expected launch: 2009

New Products – Current StatusR-Fenibut- Pure enantiomeric form of known drug, at least 2x more effective than a

parent drug, thus requires ½ of dosage or less;

- Fewer side effects;

- Current status: scale-up and fine-tuning of technology

- Expected launch: 2009/2010

R-Fenotropil

- New patented molecule, at least 2x more effective as parent drug, thus requires ½ of dosage or less and has fewer side effects;

- Current status: scale-up and fine-tuning of technology

- Expected launch: 2009/2010

New Products – Current Status

Memantine

- Widely used for treatment of Alzheimer’s disease, running out of patent protection

- Olainfarm developed technology for worldwide sales

- Exclusive co-operation with a multinational company, Olainfarm will sell Memantine in CEE, CIS and Middle East

- Current status: Bioequivalence studies completed registration under way

- Expected launch: 2009 (limited markets)�

New Products – Current Status

New Generics Program for Baltics

- First stage includes five new first generics for the Baltic states, two for treatment of fungus, two for CNS diseases and one cardiovascularmedicine

- Three of the five will be registered through Baltic MRP procedure

- Currens status: registration under way

- Expected launch: 2008

Historic figures & plans for 2008

EBITDA, EBIT and Net Profit, LVL'000

2508

3700

3250

3809

964

1671

960

1287

632778

170326

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007 2008F

EBITDA

EBIT

Net profit

- Growth of all indicators reversed in 2007 due to undererformance in sales;

- General fiveyear plan remains unchanged, except for more aggressive investments in marketing

- Extra pressure on labor and energy costs outweighted by generally better margins

Historic and Expected Margins

Margins

19,3%

23,8%

18,4%

16,2%

7,4%

10,7%

5,4% 5,5%4,9% 5,0%

1,0% 1,4%0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

2005 2006 2007 2008F

EBITDA Margin

EBIT Margin

Net Margin

- Proximity to Break-even makes changes in sales leave a disproportionate impact on all margins;

- Additional marketing costs further increase the Break-even, but is a conscious decision for future launches

Share performance in 2007

-- Olainfarm-- OMX Riga

Thank you and Welcome!

-More information is always available at: - www.olainfarm.lv- www.baltic.omxgroup.com- slapinsh@olainfarm.lv- +371 2 644 8873or

- through conference calls

or

- Investors’ days at Olainfarm in September

IPO of June 2007

- 876 023 shares subscribed; 2 584 267.85 LVL raised

- Post issue number of shares: 14 085 078

- Raised amounts allowed to proceed with smaller items of CAPEX program, including warehousing and some production units

- Ampouling facility project postponed, not abandoned

Considerations for Further Activities

- Partial issue allowed to attract some leverage;

- Considerable CAPEX needs remain for 2008 and further years, especially as new products get launched into market;

- Limited possibilities for further significant leverage;

- Board and the Council to elaborate proposals by the end of thisyear.