KEMIRA, NORDEA CAPITAL AND SITRA ACQUIRE SHARES IN OULU PHARMACEUTICAL PROCESS R&D FIRM

Kemira Fine Chemicals Oy, Profita Fund II, a private equity fund of Nordea Capital Oy, and the Finnish National Fund for Research and Development (Sitra) have signed an agreement whereby they will acquire minority holdings in Oulu-based Pharmatory Oy, each with a share of 24 %. Pharmatory concentrates on services for i.a. process development, small-scale production, and quality assurance of pharmaceutical fine chemicals. The company's operative management and founders will continue as shareholders in the firm.

Pharmatory will issue a share offering to its new owners, and the funds will be used to establish production, laboratory, and office facilities in connection with the Kemira plant in Oulu. The total investment amounts to 3.5 million euros. Pharmatory's partner, Turku-based Galilaeus Oy, will also move into the new facilities. Galilaeus Oy will invest EUR 1.7 million in commencing fermentation of active pharmaceuticals. The production facilities will be completed during spring and summer 2002.

For Kemira Fine Chemicals Oy, a producer of organic fine chemicals, the investment in Pharmatory is in line with the company's growth strategy. Kemira Fine Chemicals is expanding its operations to custom manufacturing of pharmaceutical intermediates. Through the Pharmatory cooperation, the company's GMP (Good Manufacturing Practice) knowhow will increase, and the company will be able to provide the world's leading pharmaceutical companies broader process development, as well as small-scale GMP-level production.

Pharmatory offers its clients the process from innovation to product, which includes i.a. process R&D, small-scale GMP manufacture of active pharmaceuticals, as well as development of analytical methods. The company's most important clients are Finnish drug discovery companies, and preliminary negotiations on cooperation have been held with Swedish and German drug discovery companies as well. Pilot production cooperation has existed with Kemira Fine Chemicals and with the Chemical Technology unit of the Technical Research Centre of Finland. Possible clients also include certain Finnish central hospitals as well as pharmaceutical companies worldwide, which can be reached through the networks of Kemira Fine Chemicals and Sitra.

Pharmatory's goals in the near future include growing to become a significant supplier of pharmaceutical development services in Finland and Northern Europe, as well as expanding operations in Europe and worldwide through the network of Kemira and Sitra. The estimated turnover for 2005 is EUR 3.5 million, and the company is expected to employ some 40 people at that time. Another goal is to achieve a significant position as a supplier of GMP fermenting services with the help of the technology of Galilaeus Oy.

Pharmatory Oy has begun operations at the beginning of this year in the Oulu Medipolis Center, and the company's CEO and President is Seppo Parhi.