Pharmstandard company presentation

1. Pharmstandard company presentation UBS Russian One-on-One Conference 18-19 March 2008

2. Disclaimer and Confidentiality Requirements This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of OJSC Pharmstandard (the “Company”) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation has been prepared solely for use in connection with the possible offering of ordinary shares (the “Shares”) and global depositary receipts representing shares (“GDRs” and, together with the Shares, the “Securities”) in the Company (the “Offering”). This document is an advertisement and not a prospectus and any purchase of Securities in the Offering should be made solely on the basis of information contained in the prospectus and any supplemental prospectus to be published in respect of the Offering. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of Augment Investments Limited (the “Selling Shareholder”) or the Company or any of their respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by persons who are not Relevant Persons (as defined below). Solicitations resulting from this presentation will only be responded to if the person concerned is a Relevant Person. This presentation is not for distribution in, nor does it constitute an offer of securities in the United States, Canada, Australia or Japan. Neither the presentation nor any copy of it may be transmitted into the United States, its territories or possessions, or distributed, directly or indirectly, in the United States, its territories or possessions. Any failure to comply with this restriction may constitute a violation of US securities laws. The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The Company has not registered and does not intend to register any portion of the Offering in the United States or to conduct a public offering of any securities in the United States. This presentation is made to and directed only at (i) persons outside the United Kingdom, (ii) qualified investors or investment professionals falling within Article 19(5) and Article 49(2) (a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (iii) high net worth individuals, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (such persons collectively being referred to as "Relevant Persons"). This presentation and its contents are confidential and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person, whether or not such person is a Relevant Person. Failure to comply with this restriction may constitute a violation of applicable securities laws. If you have received this presentation and you are not a Relevant Person you must return it immediately to the Company. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation is not a public offer or advertisement of Securities in the Russian Federation and is not an invitation to make offers to purchase any Securities in the Russian Federation, and must not be passed on to third parties or otherwise be made publicly available in Russia. The GDRs have not been and will not be registered in Russia and are not intended for “placement” or “circulation” in Russia. This presentation includes 'forward-looking statements'. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's projects and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. Each of the Company and the Selling Shareholder and their respective agents, employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. All information not separately sourced is from Company data.

3. Company Overview Dr. Igor Krylov, CEOElena Arkhangelskaya, CFO

4. Russia pharmaceutical market development Source: Pharmexpert, Renaissance

5. Consumption per capita ($) Russian Pharma Market Set to Expand Pharmaceutical Consumption Per Capita in Russia($)* • Drug consumption per capita expected to double in 2011 due to strong macroeconomic driving consumer boom • Growing access to medicines in retail market by active development of distribution companies and pharmacy chains • Increased consumer focus on health and well being in line with demographic trends Consumption per capita ($) Consumption per capita ($) *in retail prices Pharmaceutical Consumption Per Capita by Country($)** ** in producers' prices Source1: Pharmexpert Source2: Renaissance, EU Market Indicators

6. Russian Pharmaceutical market structure 2007 Market structure by sales channels based on 2007 Market split between domestic and international competitors 2007 Source: Pharmexpert, retail prices 2007

7. Pharmstandard achievements 2007 • Leading domestic pharmaceutical company in Russia (measured by sales) • #3 pharma company overall in Russia and #1 pharma company in the commercial segment • Industry leading growth and profitability • Revenue growth +34% and achieved $446 mln in 2007 • EBITDA growth +67% and achieved $65 mln in 1H 2007 or 38% as % from sales • Market leading brands • 6 brands among top-20 best selling domestic brands in Russia1 • New long-term projects and acquisitions • Production contract with Solvay Pharma (IRS-19, Immudon) • Acquisition 20% of Mir-Farm company (R&D base for future development) • Exclusive contract with Grindex to promote and sale Mildronat® product in Russia • Masterlek integration and production transfer to own factories of its products (Arbidol, Flukostat)) • Launch 10 new products • 5 OTC (Maxicold, Passifit , Immunex, Complivit Ca D3 and Complivit 365) • 5 Rx (Biosulin, Rastan, Artrozan, Mexiprim, Benfolipen) • Experienced sales force • More than 340 sales reps2 and implemented ETMS system Source: Company 1 Pharmexpert, in retail prices 2 As at 31 December 2007

8. Pharmstandard Key Development Milestones 4Q03: Acquisition of ICN’s business in Russia (five factories, distribution centres and pharmacy chain) 2H05: Sale of Marbiopharm (pharma production facility) Creation of holding company/ legal restructuring finalised 2H06: Termination of production in Oktyabr plant in St Petersburg, production transferred to other existing sites Acquisition of Masterlek (3.5% share of domestic Russian Pharma market by sales value) Leksredstva plant (Kursk) May 2007: Pharmstandard successfully completed its IPO, selling 43% of its share capital to the international and domestic institutional investors 4Q06: New production of spray, tablets and capsules; central manufacture laboratory and renovation of production facilities Total investment since 2004: approximately RUR 600m Pre 2003: Group consisted of two manu-facturing facilities (Ufa and Phytopharm) operating under Biovit LLC 2004 2005 2006 2007 2008 2003 Q104: New management team brought in with experience in international and domestic pharma companies 2Q04: Close Polypharm (pharma production facility) 1H05: Acquisition of TZMOI (Tyumen)—manufacturer of medical equipment Open centralised warehouse for pharmaceutical products in Moscow 1H06: New production of solutions, production of vitamins and insulin at Ufavita plant (Ufa). Total investment since 2004: approximately RUR 730m May 2006: Legal name changed from Biovit LLC to OJSC Pharmstandard 2007: Solvay and Pharmstandard has signed the agreement on manufacturing two pharmaceutical products Imudon® and IRS 19® in Russia Start production of Arbidol and Flucostat on Leksredstva ( Kursk) 1Q08: Acquisition of 19,88% shares of «DIPAKA TRAIDING LIMITED», which owns Mirpharm Signing agreement with Grindeks on exclusive distribution and promotion of Mildronate® Source: Company Note: OJSC – Open Joint Stock Company, LLC – Limited Liability Company

9. Phytopharm Capacity: 56m Pharmstandard HQ Moscow Kursk Nizhny Novgorod Tyumen Ufa Tomsk Leksredstva Capacity: 671m Ufavita Capacity: 146m TZMOI Tomskhimpharm Capacity: 220m Modern Production Facilities Source: Company Note: Capacity in packs. Figures shown are as of 31 December 2007

10. #3 pharmaceutical company on Russian market Market Share of Top-10 Companies in theRussian Pharma Market (% 2007 in value)1 Market Share of Domestic Pharmaceutical Producers (% 2007 in value)1 3 #3 pharma company in Russia overall 3 # 1 domestic pharma company Source: Pharmexpert Notes: Based on sales in retail prices for 2007

11. A Leader in the Commercial Segment of Russian Pharma market Market Share — Top 10 Companies1 Market Share—Top 10 Domestic Companies1 2 3 PHS is #1 in commercial segment (commercial segment is 73% of the total market) Source: Pharmexpert Notes: Commercial segment 2007, based on sales in retail prices for 2007

12. Growth Analysis Across Market Segments1 Domestic companies International companies 3 Pharmstandard demonstrated leading absolute growth in 2007 among its domestic and international pears Source: Pharmexpert, Note: 1 Based on sales in retail prices 2007

13. Diversified Product Portfolio in 2007 Pharmaceuticals 86% of 2007 sales Medical Devices 14% of 2007 sales OTC 72% of 2007 sales Rx1 14% of 2007 sales • Therapeutic focus: • Analgesics • Cough & cold • Vitamins • Anti-viral • Anti-fungal • Product portfolio includes: • Acid pump inhibitors • Nitrites & nitrates • ACE inhibitors • Alimentary tract metabolism • Product portfolio includes: • Sterilisers • Distillers • Medical disposables 37% growth (23%)2 24% (12%)2 growth 33% growth 34% (22%)2 revenue growth in 2007 Source: Company Note: 1 Includes Other sales 2 Pro forma 2006

14. 14% Medical Equip. 13% Medical Equip. 1% Other 1% Other 14% Medical Equip. 1% Other 14% Rx 13% Rx 14% Rx 18% Medical Equip. 1% Other 13% Rx 72% OTC 72% OTC 71% OTC 69% OTC Historical Net Sales 11 371 9 374 8 523 5 685 3 Achieved 21% growth in 2007 (OTC 23%, Rx 12%, Medical equip 34%) Source: Company Note: 1 2005 results include results of Tyumen acquisition (as of 1 January 2005) 2 2006 results include results of MasterLek acquisition (as of 2 August 2006) 3 Pro Forma assumes inclusion of MasterLek as part of Pharmstandard as of 1 January 2006

15. Divisional Sales Breakdown–IFRS Source: Company reports, 2005, 2006 results audited by E&Y (IFRS) Note: 1 Pro Forma assumes inclusion of MasterLek as part of Pharmstandard as of 1 January 2006.

16. Our Strategy • Promote our market-leading brands to drive sales growth and profitability • Launch new products on a regular basis • Expand sales and marketing effort • Export expansion • Continue to actively control costs • Grow through acquisitions • Exploit opportunities from Federal Reimbursement Programme (FRP) as they arise 3 Building a top-3 pharmaceutical company in Russia

17. Promote our market-leading brands to drive sales growth and profitability Leading domestic pharma trademarks by sales value in 2007 1 • Arbidol is #1 on total market • 6 leading brands • “Top of mind” position with consumers • Significant brand loyalty • 5 leading brands improve their positions • 3 leading brands among top-20 on the total commercial market Exclusively produced by Pharmstandard Produced by Pharmstandard Source: Pharmexpert. Based on consumer prices, Rx and OTC products Note: 1 Masterlek Brands

18. Top Pharmaceutical Product Drivers 1 1 Source: Company and MasterLek reports Note: 1 Acquired as part of MasterLek acquisition on 2 August 2006

19. OTC Products – Top-Selling Products 1 1 Source: Company and MasterLek reports Notes: 1 Acquired as part of MasterLek acquisition on 2 August 2006 2 Terpincod is not actively promoted

20. Leading Products in Anti-infective Systemic Use Segment (2007) Arbidol®—#1 Pharma Brand in Russia Arbidol® • Captured #1 brand position, in part, through active promotion by Pharmstandard sales force • Acquired as part of Masterlek transaction • Original product developed in 1987, active marketing launched in 2000 • Sales growth 2006-2007 – 36,3% Annual Segment Sales Dynamics1,2 Source: Pharmexpert Note: Remodelled to reflect current categories Source: Company 1 Source: Pharmexpert 2 Based on consumer prices

21. Pentalgin—#1 Pain Reliever (Non-Narcotic) Top-10 Products in Analgesics Segment (2007) Pentalgin • Pentalgin plus® in new (improved) formulation was launched in 2007 to capitalise on Pentalgin’s brand recognition • Franchise includes Pentalgin-N® andPentalgin-ICN® • First launched Pentalgin-ICN® in 1999 and followed with launch of Pentalgin-N® in 2002 • Steadily gained market share since 2001 Annual Segment Sales Dynamics1,2 Source: Pharmexpert Source: Company 1 Source: Pharmexpert 2 Based on consumer prices

22. Complivit - #1 Vitamin (Vitamins + Minerals) • Vitamins and minerals segment includes products for adults, children, and pregnant women (A11A) • Segment demonstrates stable volumes, but strong value growth (CAGR of 15%) from 2001 to 2007 due to: • Price rises and dollar depreciation • Active promotion of branded products • Pharmstandard had 19.7% market share in 2007 • Complivit 2007/2006 growth – 32% Multivitamins with Minerals Market Share Breakdown (2007) Annual Segment Sales Dynamics1 Source: Pharmexpert Note: 1 Based on consumer prices

23. Prescription Products—Top Selling Products 1 Source: Company and MasterLek reports Note: Shading denotes actively promoted products 1 Acquired as part of MasterLek acquisition on 2 August 2006

24. Phosphogliv® – Successful Rx Product Launch Phosphogliv® Top products in Hepatic Protectors segment (2007) • Launched in 2005 • Novel product in-licensed from the Institute of Biomedical Chemistry • Premium priced product based on superior efficacy • Patent protected until 2018 • Clinically validated • 2nd generation combination therapy with anti-viral, anti-inflammatory andimmunomodulating properties Annual segment sales dynamics1 Source: Pharmexpert Source: Company 1 Source: Pharmexpert 2 Based on consumer prices

25. Key facts Amixin Annual Anti-viral segment dynamics2 • Acquired as part of MasterLek acquisition (2006) • Mode of action - induces production of all types of interferon (α, β, γ); has antiviral and immunomodulating activity; stimulates production of human antibodies • Currently 90%1 of prescriptions come from GPs and pediatricians for the treatment of prophylaxis and treatment of URTI • Other potential indications include acute and chronic pelvic infections and STD • Sales growth 2006-2007 – 16,7% Note: 1 Source: ComCon, PrIndex Source: Pharmexpert, 2007 Note: 2 Based on consumer prices

26. New product launches in 2007 OTC Rx New products sales achieved $13.7 mln or 3% from total pharmaceutical sales in 2007 Source: Company data, Pharmexpert,

27. Maxicold® – Successfull OTC Product Launch Top products in Cold preparations segment (2007) Maxicold® • Launched in 2007 • Achieved about $2 mln sales during the first year Annual segment sales dynamics1 Source: Company 1 Source: Pharmexpert 2 Based on consumer prices

28. Product Approvals and Launches 2008 OTC Rx Source: Pharmexpert Note:1 Segment size – retail audit 2 Excludes regional tenders

29. All sales reps have medical education/work experience Covers 75% of the Russian pharma market Incentivised sales force—up to 33% bonus of annual salary In 2008 looking to: Increase “feet on the street” to over 430 sales people Further specialise sales force by therapeutic area HQ Sales and marketing OTC Rx (incl. ENDO-Team) National manager 1 manager National manager 2 managers Real time data -ETMS Real time data -ETMS Regional manager 23 managers Regional manager 29 managers OTC sales force (134) Rx sales force (157) Expand sales and marketing effort 3 Experienced sales force up to 340 sales persons1 Source: Company Note: As at 31 December 2007

30. Masterlek Integration • Leading Masterlek brands accelerated its sales growth under Pharmstandard management in 2007 • Arbidol +56%; + 831 m RUR • Flucostat + 16%; + 68 m RUR • Amixin + 14%; + 29 m RUR • Production transfer on own facility (Kursk) improves Gross Margin • Arbidol to 60% in 2007 vs 46% in 2006 • Flukostat to 90% in 2007 vs 58% in 2006 • Amixin production transfer on own facility (Tomsk) will be fully accomplished in 2008 • Masterlek integration decreased of administration costs 3 Realised synergy effect

31. Medical Equipment (TZMOI) Medical Equipment (2007 sales RUR 1,609m), 14% of group sales in 2007 Sterilizers (72% of 2007 sales)1 Aqua distillers (5% of 2007 sales)1 Disposables/Other (23% of 2007 sales)1 • Total sales growth is 35% in 2007 • Growth driven by sterilizers (Federal tender 450 mln RUR) • Improved GM Source: Company estimates Note: 1 Based on divisional sales

32. Pharmstadard’s investment case since IPO Pharmstandard IPO placement structure Pharmaceutical stock performance (rebased %) • Offer structure: • 43.3% of total shares • Date of placement – May 4, 2007 • Price - $58.2 for share and $14.55 for GDR • Stock Exchange (PHST): • LSE - 25% in GDRs • RTS, MICEX - 18.3% • Underwriters: • UBS and Citigroup • Depositary for GDR: • Bank of New York Source: Bloomberg, Renaissance Russian consumer stocks performance in 2007 vs RTS Index (%) Source: Bloomberg, Renaissance

33. Appendix

34. Production Facilities – Summary Overview Source: Company. Note: Total capacity for pharmaceutical production in 2006 excludes capacity from Oktyabr (St. Petersburg) factory which closed in Q3’2006. Total capacity calculations assume 8-hour shifts and 7 day working week

35. Breakdown of Sales for 2007 by Distributor Top 5 Distributors – 2007 • Top 5 distributors accounted for 58% of pharmaceutical product sales in 2007 • Typical payment terms for distributors: • Regional and export distributors: 30–60 days • National distributors: 60–90 days • FRP program: 180 days Source: Company Note: Manufacturers’ prices

36. Low Exposure to FRP Composition of Leading Companies’ Sales in Russia by Market Segment in 2007 • Pharmstandard has a lower exposure to the FRP compared to its peers Source: Pharmexpert Note: Based on retail prices in US$

37. Financial Overview

38. Our Portfolio growth in 1H 2007 IFRS basis Pro-Forma basis

39. Margin Expansion 1H 2007 EBITDA Gross Profit Source: Company reports Note: 1 Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006

40. Competitive Cost Structure 1H 2007 General and Administration Costs Selling and Distribution Costs Source: Company reports Note: 1 Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006

41. Attractive Profitability Growth HY Net Profit 2006–2007 21.4% 50% Net Profit growth in 1H 2007 (pro-forma) Source: Company reports Note: 1 Pro Forma assumes inclusion of Masterlek as part of Phamstandard as of 1 January 2006

42. IFRS basis Consolidated Balance Sheet and Capex Capital Expenditure Debt summary • Facility A: US$91m (maturity Dec-2009/L+150) • Facility B: US$55m (maturity Dec-2011/L+190) • Net debt: US$128m

43. Core Comparables Benchmarking Gross margin (1H 2007) Sales growth (1H 2007) n/a EBITDA margin (1H 2007) Net profit margin (1H 2007) n/a 3 PHS has industry leading growth and profitability