Peania, March 3, 2003 - Lavipharm's financial results for the year 2002 exceeded forecasts, not only on a consolidated basis, but also for the parent company.

Specifically, consolidated earnings before taxes and after minority interests posted a significant increase of 43.5%, reaching euro 5.4 million, compared to euro 3.7 million in 2001. Consolidated own sales reached euro 304.8 million, compared to euro 290.6 million in the corresponding period of 2001, showing an increase of 5%.

The year 2002 was characterized by significant strategic decisions for Lavipharm Group:

• The signing of an agreement and plan of merger between Lavipharm Corp. and the Nasdaq-listed, Zonagen Inc.
• The signing of a collaboration agreement with GlaxoSmithKline for the stickering, wholesaling and exclusive distribution of its pharmaceutical products in Greece by Lavipharm.
• The successful re-launching of the well-known and established analgesic, Algon, by Lavipharm.

At the same time Lavipharm continued its investment activities in the following sectors of:

• Services, with the acquisition of real estate in Avlona, where construction work is underway for the new warehousing and distribution center.
• Research and Development.
• Production, with the purchase of state-of-the-art machinery.

It is also worth noting Lavipharm Alliance Sante's continuing upward course in 2002. Specifically, consolidated profits before taxes and after minority interests were considerably strengthened, reaching euro 1.30 million from euro 1.03 million in the same period of 2001, marking an increase of 25.2%. Consolidated own sales increased by 19%, reaching euro 145.8 million from euro 122.5 million in 2001.

«Considering the worldwide unfavorable economic environment, Lavipharm's positive results in 2002 were especially encouraging, as we did not only succeed but exceeded our objectives», stated Dr. Athanase Lavidas, President and CEO of Lavipharm Group, and continued: «The hard work, the right business decisions and the solid basis we have built, allow us to look positively towards a profitable future».

The financial results of the listed company Lavipharm SA were also positive. Earnings before taxes showed an increased of 13.7%, reaching euro 6.7 million from euro 5.9 million in the corresponding period of 2001. Lavipharm's own sales reached euro 27.0 million, while earnings per share reached euro 0.17 in 2002 from euro 0.15 in the corresponding period of 2001.

Lavipharm is the largest integrated Group of companies in the development, production, import, promotion and distribution of pharmaceutical and dermocosmetic products in Greece with a strong international activity.