The most successful acquisitions in Bulgaria!

1. MERGERS & ACQUISITIONS IN BULGARIA 23 April 2008 Sheraton Hotel Sopharma Pharmaceuticals Dr. Ognian Donev, CEO The most successful acquisitions in Bulgaria!

2. Sopharma Pharmaceuticals - Acquisitions

3. Sopharma’s investments today

4. Case study: Bulgarian Roze Sevtopolis AD • The company changed owners several times after its privatization in 1997, until in 2004 it became part of Sopharma Group • After the first three “successful” privatizations the company could be pictured in short with the following facts and figures: • 11 million BGN losses; • 8,8 million BGN ZUNK; • Over 2 million BGN payables to suppliers; • Payables to the National Health Insurance Fund; • Unpaid taxes … etc.

5. 3 years with Sopharma – Capital investments • New modern facility for secondary packaging and a new warehouse for raw materials with total area of 880 sq. m. BEFORE AFTER

6. 3 years with Sopharma – Capital investments • New, cleaner and more efficient energy source for the steam production • New water cleaning system helps reuse water in the production cycle

7. 3 years with Sopharma – Capital investments • “State of the art” tablet filming machine provides 50% production capacity increase

8. 3 years with Sopharma – Capital investments • New GMP certified facility for extracting the active ingredients from medicinal plants with 100 tons annual production capacity was finished this year

9. 3 years with Sopharma – Capital investments • Sopharma purchased more than 4 000 acres agricultural land in the region of Kazanlak to be planted with medicinal plants for the production needs for Sopharma and Bulgarian Rose – Sevtopolis • The production process will now be supplied regularly with hard to obtain raw materials on reasonable prices • Also, by undertaking this step Sopharma and Bulgarian Rose – Sevtopolis will provide work for more than 50 agricultural workers and will unfold and make use of the potential of a large area of deserted agricultural land

10. 3 years with Sopharma – Capital investments • By the end of this year the company will make more than 4 million BGN planned investments: • A modern warehouse for storage of plant raw materials will be built • Additional machines for the tablet facility will be purchased – 720,000 BGN • Additional modern machines for the phytochemical facility will be purchased - 1.5 million BGN • The warehouse for finished goods will be rebuilt – 800,000 BGN • New laboratory equipment will be purchased – 400,000 BGN, etc.

11. 3 years with Sopharma – SEVTO on BSE-Sofia AD29 • The shares of Bulgarian Rose Sevtopolis are traded on the official segment “B” on the BSE-Sofia AD • The company is included in the BG-40 index • For the three years with Sopharma the position of Bulgarian Rose – Sevtopolis on BSE – Sofia shows substantial improvement: • The shareholders physical persons increased from 768 in 2005 to 1200 today; • The shareholders legal persons increase from 16 in 2005 to 72 today; • The shareholder capital increased from 754,089 BGN in 2004 to 12,065,424 BGN in 2007 – and increase of 16 times.

12. “Bulgarian Rose” blossoms with Sopharma • For three years management by Sopharma, Bulgarian Roze - Sevtopolis transformed from an almost bankrupt company to: • Company with 100% load of production capacities; • Company with secured markets; • Company with shareholder capital of 12 million BGN; • Company without debts; • Company with an aggressive investment program and market capitalization of over 35 million BGN; • Company with 2 times increase in sales income for the period 2004 – 2007 – sales reached 12 million BGN; • Company with 3 times increase in profit for the same period; • Company with 55 times increase in capital expenditures – 8 million BGN for the last year, etc. • Bulgarian Rose – Sevtopolis is only one example of Sopharma’s acquisition success

13. Thank you for your attention! Sopharma Pharmaceuticals 16, Iliensko Shousse Str. 1220 Sofia Bulgaria Dr. Ognian Donev CEO and Chairman of the Board of Directors +3592 8134 253 mail@sopharma.bg