THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND

							This press release is an advertisement and not a prospectus and investors should not subscribe for or purchase any shares or other securities
referred to in this press release except on the basis of information in the prospectus to be published by OJSC Pharmstandard in due course in
connection with the admission of the shares or other securities to the Official List of the Financial Services Authority. Copies of the prospectus
will, following publication, be available from OJSC Pharmstandard’s registered office. This press release does not constitute or form part of any
offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of OJSC
Pharmstandard, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment
decision relating thereto, nor does it constitute a recommendation regarding the securities of OJSC Pharmstandard.



                                                    OJSC PHARMSTANDARD

                             CONFIRMS INTENTION TO CONDUCT
                 INITIAL GLOBAL SHARE OFFERING IN SECOND QUARTER OF 2007

                                                                     AND

                                                     ANNOUNCES 2006 RESULTS

11 April 2007, Moscow: OJSC Pharmstandard (“Pharmstandard” or the “Company”), a leading domestic
pharmaceutical company in Russia, today confirmed its intention to launch an initial offering of its shares
(the “Offering”). The Company expects that existing shares will be offered by the Company's principal
shareholder in the form of global depositary receipts (“GDRs”) and ordinary shares by the end of June
2007. The Company's shares are currently listed on the Russian Trading System (RTS) and the Company
further intends to seek a listing of the shares on the Moscow Interbank Currency Exchange (MICEX), and
the GDRs on the London Stock Exchange.

The Company has appointed Citigroup and UBS Investment Bank as Joint Global Coordinators and
Bookrunners of the proposed Offering.

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

“In the last three years Pharmstandard has grown considerably both through acquisitions and
organically. We are now the leading domestic player in the Russian pharmaceutical market, one
of the fastest growing in the world. Our goal is to strengthen further our position as the leading
domestic pharmaceutical company in Russia and become one of the top 3 pharmaceutical companies
operating in Russia overall, by executing our strategy of promoting our market leading brands,
launching new products, increasing investment in sales and marketing and selectively acquiring
additional companies.

We also aim to achieve margin improvement through realising synergies from our recent
acquisition of Masterlek as well as focusing on promoting our market leading brands. This
strategy, which is being executed by an internationally experienced management team, leaves us
well positioned to become the first Russian pharmaceutical company to access the international
equity capital markets.”

2006 Results Highlights

Pharmstandard also announced today the highlights of its results for the year ended 31 December
2006.

In 2006, the Company achieved sales of RUR 8,523 million (US$ 323.71 million), 50% higher than in
2005. The Company’s increased revenues were due to higher sales of over-the-counter products which
were 55% higher at RUR 6,032 million (US$ 229.1 million), and branded prescription products, which

1
    All USD figures based on exchange rate between the rouble and US dollar which stood at RUR 26.33 on 31/12/06.

      "NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
                             CANADA, AUSTRALIA AND JAPAN."
rose 63% to RUR 1,199 million (US$ 45.5 million). Growth resulted from both the first time
consolidation of the results of the operations of Masterlek, which was acquired in August 2006 and
contributed revenue of RUR 1,441 million (US$ 54.7 million), as well as organic growth of
Pharmstandard’s existing products. The promoted brands that made the largest contribution to sales in
2006 were Arbidol®, Pentalgin® and Terpincod®. The remainder of Pharmstandard’s 2006 sales came
from medical equipment and disposables which increased 18% to RUR 1,196 million (US$ 45.4 million).

The increase in Pharmstandard’s sales enabled the Company to increase gross profits in 2006 by 55% to
RUR 4,938.5 million (US$ 187.6 million). The gross margin improved from 56% in 2005 to 58% in 2006.

 In 2006, Pharmstandard’s profits attributable to shareholders increased by 109% to RUR 1,895.3 million
(US$ 72 million). This figure was after income taxes of RUR 663.3 million (US$ 25.2 million) and
minority interests of RUR 138.4 million (US$ 5.3 million).


                                                              Year ended Year ended
                                                                  31             31
                                                              December       December
                                                                2005            2006
                                                                      (audited)
                                                               RUR in         RUR in     % change
                                                               millions       millions

      Sale of Goods                                              5,684.8       8,522.8     +49.9
      Gross profit                                               3,177.7       4,938.5     +55.4
      Profit before income tax                                   1,443.7       2,697.0     +86.8
      Profit for the period                                      1,019.3       2,033.7     +99.5
       Attributable to participants of the Company                 906.2       1,895.3    +109.1
       Attributable to minority interests                          113.1         138.4     +22.4


Full details of our 2006 results may be found on our website, http://eng.phstd.ru/

                                                  - END -

Enquiries:

OJSC Pharmstandard
Olga Leschankaya/Maksim Stetsyuk                          +7 495 970 0030

Citigate Dewe Rogerson
David Dible/ Marina Calero                                +44 (0)20 7638 9571


Notes to Editors:

Overview of Pharmstandard
Pharmstandard is the leading domestic pharmaceutical company in Russia and the fourth largest
pharmaceutical company operating in Russia overall, by sales value. The Company develops,
manufactures, markets and sells generic and, to a lesser extent, original pharmaceutical products in
various formulations, primarily in Russia. Pharmstandard’s product portfolio includes market-leading
brands, such as Arbidol® (antiviral for systemic use),Pentalgin® (analgesics), Terpincod® (cough and
cold), Complivit® (vitamins) and Flucostat® (antifungal). In 2006, Arbidol® was the largest selling
pharmaceutical product, by sales, in the commercial segment of the Russian pharmaceutical market,
according to preliminary data by Pharmexpert. Pharmstandard has limited exposure to the Russian

    "NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
                           CANADA, AUSTRALIA AND JAPAN."
Government’s Federal Reimbursement Programme, through which 8% of its pharmaceutical product
sales were made in 2006.


Pharmstandard’s pharmaceutical product portfolio includes products that do not require a medical
prescription, as well as prescription products. The pharmaceutical product portfolio covers a wide
range of therapeutic segments. Sales of products within the Company’s five core therapeutic segments,
namely analgesics, cough and cold, vitamins, antivirals for systemic use and antifungals, accounted for
72% of its pharmaceutical product sales in 2006. Pharmstandard’s pharmaceutical product portfolio
consists of both branded generics, which may be trademarked and which it promotes through its direct
sales force, and non-branded, or “pure”, generics, which are older products that have demonstrated
sustainable demand from consumers without the need for continued active promotion.

In August 2006, the Company acquired Masterlek, a Russian pharmaceutical company focused on the
antiviral for systemic use and antifungal therapeutic segments. This acquisition was in line with
Pharmstandard’s corporate strategy to expand its market position in Russia through acquisitions that
complement the Company’s product portfolio. Masterlek has contributed approximately 30 products
to the Company’s product portfolio, including the market-leading brands Arbidol® and Flucostat®.

Pharmstandard operates five manufacturing facilities in Russia and, with a production capacity of 1,070
million packs as of December 31, 2006, it has one of the largest production capacities among domestic
pharmaceutical companies in Russia. The Company has invested approximately RUR1.6 billion in
capital investments in its manufacturing facilities since the start of 2004. Pharmstandard’s flexible
production capacity distinguishes it from its competitors by allowing it quickly and efficiently to
adjust production based on input from its distributors and sales force.

In addition to its pharmaceutical business, the Company also develops, manufactures, markets and
sells medical equipment, such as sterilizing and distilling machines, and disposable medical products,
such as syringes.

                                                   ------

The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration, exemption from registration or qualification
under the securities laws of any jurisdiction.

This press release may not be published, distributed or transmitted in or into the United States. This
press release does not constitute an offer to sell or the solicitation of an offer to buy the securities
discussed herein. The securities mentioned herein have not been, and will not be, registered under the
United States Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United
States unless they are registered under the Securities Act or pursuant to an exemption from registration.
There will be no public offering of the securities in the United.States.

This communication is directed only at persons who (i) are outside the United Kingdom or (ii) investment
professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 ("the Order") or (iii) high net worth entities and other persons to whom it may
lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being
referred to as "relevant persons"). Any investment activity to which this communication relates will only
be available to and will only be engaged with relevant persons. This press release must not be acted on or
relied on by persons who are not relevant persons.

Any offer of securities to the public that may be deemed to be made pursuant to this communication in any
EEA Member State that has implemented EU Directive 2003/71/EC (together with any applicable


    "NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
                           CANADA, AUSTRALIA AND JAPAN."
implementing measures in any Member State, the “Prospectus Directive”) is addressed solely to qualified
investors (within the meaning of Article 21(1)(e) the Prospectus Directive) in that Member State.

This press release is not a public offer or advertisement of any securities in the Russian Federation, and is
not an offer, or an invitation to make offers, to purchase, sell, exchange or transfer any securities in the
Russian Federation or to or for the benefit of any Russian person or entity. Information contained in this
document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any
securities in Russia or to or for the benefit of any Russian person or any person in Russia, and does not
constitute an advertisement of any securities in Russia. The GDRs have not been and will not be
registered in Russia and are not intended for “placement” or “public circulation” in the Russia.

Forward-Looking Statements:
Some of the statements in this press release are forward-looking. Forward-looking statements include
statements regarding the intent, belief and current expectations of the Company or its officers with
respect to various matters. When used in this press release, the words “expects,” “believes,”
“anticipates,” “plans,” “may,” “will,” “should” and similar expressions, and the negatives thereof, are
intended to identify forward-looking statements. Such statements are not promises or guarantees, and are
subject to risks and uncertainties that could cause actual outcome to differ materially from those
suggested by any such statements. Those factors include, but are not limited to risks or uncertainties,
described in our publicly filed documents.

These forward-looking statements speak only as of the date of this press release. We expressly disclaim
any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statement contained herein to reflect any change in our expectations with regard thereto or any change in
events, conditions or circumstances on which any forward-looking statement is based.

Citigroup and UBS Investment Bank are acting for OJSC Pharmstandard and no one else in connection
with the Offering and will not be responsible to anyone other than OJSC Pharmstandard for providing the
protections afforded to clients of Citigroup and UBS Investment Bank or for providing advice in relation to
the contents of this announcement or any matters referred to herein.




    "NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
                           CANADA, AUSTRALIA AND JAPAN."