Moscow February 4, 2004 – OAO Pharmacy Chain 36.6, Russia’s top health and beauty retailer, today announced its acquisition of Pharmacy Chain Leko’s 73 outlets in the Republic of Bashkortostan.  The transaction increases the number of pharmacies owned by Pharmacy Chain 36.6 to 173 stores nationwide, making the fast growing company Russia’s sector leader in both sales and outlets.

“The Leko acquisition is a key step in 36.6’s aggressive national expansion strategy,” said Pharmacy Chain 36.6 Chairman Sergei Krivosheev.  “This deal opens up the Volga-Urals region for 36.6 and we will continue growing organically and through further acquisitions into all major cities and metropolitan areas of Russia,” he added.

Pharmacy Chain 36.6 CEO Artem Bektemirov said the company will launch more stores this year in the Volga-Urals region and in Moscow, including a new store which opened today bringing its total outlets in the nation’s capital to 66.  The chain opened 21 new Moscow stores in 2003.  Pharmacy Chain 36.6 also owns and operates 34 pharmacies in Murmansk, Belgorod and Voronezh.

In 2003, estimated consolidated sales volume for the retail and pharmaceutical manufacturing divisions of OAO Pharmacy Chain 36.6 exceeded US $140 million ($118-million in 2002), including $75-million from retail operations ($59 million in 2002).

Leko controls 25 percent of Bashkortostan’s pharmaceutical market, which was over $50 million in 2003 and growing.  Leko’s stores are located in 17 cities across Bashkortostan, including 30 in the capital city of Ufa.  The network’s turnover exceeded 400 million rubles (about US $13.5- million) last year.

“This acquisition signals the first serious regional consolidation of Russia’s over $5-billion retail health and beauty market,” said Bektemirov.

Bektemirov predicted further sector consolidation in the coming 24 months.  “Even while the market demonstrates ongoing robust growth, the number of players will shrink.  Only financially strong retailers with an existing base among Moscow consumers, sophisticated technology and efficient logistics will succeed in the race for regional expansion,” he said.

“Pharmacy Chain 36.6 will certainly prove to be Russia’s national retail health and beauty consolidator of choice,” said Bektemirov, a sentiment echoed by Leko Marketing Director Alexandra Kozhaeva in Ufa.

“We are the regional market leader.  Leko management has demonstrated the same commitment to customer service and operational excellence as Pharmacy Chain 36.6,” Kozhaeva said.  She added, “The acquisition of Leko by to 36.6 is a vote of confidence in our pharmacists, employees and executives which will consolidate a decade of sales growth and retail leadership in Bashkortostan,” said Kozhaeva.

The company said international audit firm Deloitte performed the due diligence and Vneshtorgbank provided the financing for the acquisition.

OAO Pharmacy Chain 36.6 and its subsidiaries, including pharmaceutical manufacturer Veropharm, employ more than 5000 people.  The first publicly listed Russian health and beauty retailer, 36.6 is admitted for trading on MICEX, Moscow’s international stock exchange. (Symbol:  RU14APTK1007).

Contacts:

Andrei Slivchenko

tel.: (+7-095) 792-5207

e-mail:slivchenko@OAO366.ru

Vladimir Bouianov

(+7-095) 775-0077

e-mail: vladimir.bouianov@pbnco.com

Disclaimer.

Some of the information contained in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Pharmacy Chain 36.6 OJSC, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to conform them to actual results. We refer you to the documents Pharmacy Chain 36.6 OJSC files from time to time with the Russian Federal Securities Commission. These documents contain and identify important factors, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, and risks associated with our competitive environment, acquisition strategy, ability to develop new products or maintain market share, brand and company image, operating in Russia, volatility of stock price, financial risk management, and future growth.