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1 <p align="center"><b>PLIVA finalises acquisition of majority stake in LACHEMA,
2 Czech pharmaceutical company</b></p>
3 <p>Zagreb, December 3, 1999</p>
4 <p>PLIVA today announced that the acquisition of 66,67% stake of the Czech pharmaceutical
5 company, Lachema, was completed yesterday when PLIVA Krakow, PLIVA’s subsidiary
6 paid agreed price of USD 26.5 million. Completion follows the agreement that
7 was reached between PLIVA Krakow and Czech institutional investors as announced
8 on 12 November 1999.</p>
9 <p>Lachema is one of the leading Czech pharmaceutical companies. It develops,
10 manufactures and markets pharmaceuticals as well as diagnostic preparations
11 and fine chemicals. Lachema’s strength lies in cytostatics. Also, cardiovascular
12 drugs and antivirotics complete the company’s current portfolio. Lachema’s range
13 of generic cytostatic products and its brand new facility for injectable cytostatics
14 will enable PLIVA to continue its further expansion into this attractive “niche”
15 market, not only in the CEE region, but into Western markets as well. </p>

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