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<p align="center"><b>PLIVA ACQUIRES UK BASED DOMINION PHARMA LIMITED</b></p>
<p> PLIVA d.d. ("PLIVA") announced today that it has acquired Pharmascience UK 
  Limited, 100% owner of Dominion Pharma Limited ("Dominion"), for a total cash 
  consideration of GBP 3.4 million.</p>
<p> Dominion, who reported a turnover of GBP 4.3 million in 1999, markets a mix 
  of speciality branded products, together with a growing range of generics, for 
  both primary and secondary care. The speciality product range mainly comprises 
  products in the urological, ophthalmological and dermatological areas, and is 
  supported by a small hospital specialist sales team. The generic range is sold 
  directly to wholesalers and hospitals with some products being supplied to other 
  pharmaceutical companies for marketing under their own brand name. The company 
  seeks to grow through the development, licensing-in and acquisition of both 
  speciality and selected generic products. </p>
<p>The value of the company lies in its pipeline of new product agreements; the 
  ownership of certain licences through which it also carries out contract manufacturing 
  for third parties; the skilled management and staff with their knowledge and 
  expertise in both the UK and other Western European markets; as well as the 
  current range of branded niche products. The transaction will not, however, 
  involve the acquisition of any manufacturing assets. </p>
<p>Commenting on the acquisition, Zeljko Covic, President and Chief Executive 
  Officer of PLIVA, stated: "The acquisition of Dominion, which provides the benefits 
  of direct access to the important UK market as well as a team of experienced 
  staff, represents the first step in the implementation of PLIVA's strategy to 
  enter key identified markets in the West. We expect growth on UK market from 
  both Dominion products and PLIVA's generics in development. Currently, PLIVA 
  is considering further acquisitions and start-up operations both in the UK and 
  other Western markets. This transaction highlights our commitment to internationalising 
  our business and securing a firm financial and operational basis for PLIVA's 
  future, enabling PLIVA to continue to create and deliver additional shareholder 
  value.&quot;</p>
<p> For additional information please contact: </p>
<p>Erika Kaspar<br>
  Investor Relations, Director<br>
  Tel: 385 1 6120 755<br>
  Fax: 385 1 6114 413<br>
  E-mail: <a href="mailto:erika.kaspar@pliva.hr">Erika.Kaspar@pliva.hr</a></p>
<p> Marija Mandic<br>
  Finance, Financial Analyst<br>
  Tel: 385 1 6160 355<br>
  Fax: 385 1 6120 634<br>
  E-mail: <a href="marija.mandic@pliva.hr">Marija.Mandic@pliva.hr</a></p>
1	dpavlin	1.1	<p align="center"><b>PLIVA ACQUIRES UK BASED DOMINION PHARMA LIMITED</b></p>
2			<p> PLIVA d.d. ("PLIVA") announced today that it has acquired Pharmascience UK
3			Limited, 100% owner of Dominion Pharma Limited ("Dominion"), for a total cash
4			consideration of GBP 3.4 million.</p>
5			<p> Dominion, who reported a turnover of GBP 4.3 million in 1999, markets a mix
6			of speciality branded products, together with a growing range of generics, for
7			both primary and secondary care. The speciality product range mainly comprises
8			products in the urological, ophthalmological and dermatological areas, and is
9			supported by a small hospital specialist sales team. The generic range is sold
10			directly to wholesalers and hospitals with some products being supplied to other
11			pharmaceutical companies for marketing under their own brand name. The company
12			seeks to grow through the development, licensing-in and acquisition of both
13			speciality and selected generic products. </p>
14			<p>The value of the company lies in its pipeline of new product agreements; the
15			ownership of certain licences through which it also carries out contract manufacturing
16			for third parties; the skilled management and staff with their knowledge and
17			expertise in both the UK and other Western European markets; as well as the
18			current range of branded niche products. The transaction will not, however,
19			involve the acquisition of any manufacturing assets. </p>
20			<p>Commenting on the acquisition, Zeljko Covic, President and Chief Executive
21			Officer of PLIVA, stated: "The acquisition of Dominion, which provides the benefits
22			of direct access to the important UK market as well as a team of experienced
23			staff, represents the first step in the implementation of PLIVA's strategy to
24			enter key identified markets in the West. We expect growth on UK market from
25			both Dominion products and PLIVA's generics in development. Currently, PLIVA
26			is considering further acquisitions and start-up operations both in the UK and
27			other Western markets. This transaction highlights our commitment to internationalising
28			our business and securing a firm financial and operational basis for PLIVA's
29			future, enabling PLIVA to continue to create and deliver additional shareholder
30			value."</p>
31			<p> For additional information please contact: </p>
32			<p>Erika Kaspar<br>
33			Investor Relations, Director<br>
34			Tel: 385 1 6120 755<br>
35			Fax: 385 1 6114 413<br>
36			E-mail: <a href="mailto:erika.kaspar@pliva.hr">Erika.Kaspar@pliva.hr</a></p>
37			<p> Marija Mandic<br>
38			Finance, Financial Analyst<br>
39			Tel: 385 1 6160 355<br>
40			Fax: 385 1 6120 634<br>
41			E-mail: <a href="marija.mandic@pliva.hr">Marija.Mandic@pliva.hr</a></p>