4 May 2007, Moscow: JSC Pharmstandard (“Pharmstandard” or the “Company”), a leading domestic pharmaceutical company in Russia, today announces the pricing for the initial offering by Augment Investments Limited (the “Selling Shareholder”) of ordinary shares in the Company (the “Shares”) and global depositary receipts (“GDRs”) with four GDRs representing one Share (the “Offering”).

Summary of the Offering

The Offering has been priced at US$58.20 per Share and US$14.55 per GDR, implying a market capitalisation of Pharmstandard of approximately US$2.2 billion.

 Strong institutional demand was received across all regions in which the Shares and GDRs were offered.

The Offering consists of a secondary offering of 15,117,041 existing ordinary shares, 8,215,783 of which are in the form of GDRs and 6,901,258 in the form of Shares representing approximately 21.7% and 18.3%, respectively, of Pharmstandard’s outstanding Shares (excluding the over-allotment option of up to 4,929,468 GDRs).

The total offer size is approximately US$880 million excluding the over-allotment option.

Conditional dealings will commence on the London Stock Exchange at 08:00 today. Admission of GDRs to the Official List of the UK Listing Authority (“Admission”), and dealing of the GDRs on the London Stock Exchange under the symbol “PHST LI”, is expected to take place at 08:00 on 11 May 2007. Dealing of Shares on the MICEX in Moscow, Russia will be under the symbol “PHST RM”. Dealing of Shares on the RTS in Moscow, Russia has already started under the symbol “PHST RU”.

Citi and UBS Investment Bank acted as Joint Global Coordinators for the Offering.

Commenting on today’s announcement, Igor Krylov, CEO of Pharmstandard said:

“We are delighted with the results of the offering as it demonstrates the significant interest among international and domestic investors in the Russian pharmaceutical sector, one of the fastest growing in the world. The company has demonstrated strong growth to date and we intend to continue to build value for all our shareholders in the future.”