Lavipharm S.A. announced the signing of a cooperation agreement with the Cypriot businessman Mr. Euthivoulos Paraskevaidis and the establishment of three companies in Cyprus. According to the agreement, the two parties hold an equal share of participation (50%), while the management will be undertaken by Lavipharm.

The companies that have been established are the holding company, Lavipharm Pharmaceutical Services Ltd., and its two subsidiaries, Lavipharm Distribution Ltd. and Lavipharm Cyprus Ltd. Lavipharm Distribution Ltd. will be active in the distribution of pharmaceuticals and OTC products to pharmacies. Lavipharm Cyprus Ltd. will market and sell all Lavipharm own products as well as those that the Group represents on behalf of third parties and has a right to distribute in Cyprus.

With this agreement Lavipharm establishes for the first time a presence in the Cyprian market, a market of strategic importance, stated the Chairman and Chief Executive Officer of the Group, Dr. Athanase Lavidas.We believe that the cooperation with a strong partner such as Mr. Paraskevaidis gives the Group a competitive advantage in Cyprus and at the same time creates a window of opportunity to expand into other neighboring markets.

Lavipharms presence in Cyprus will provide significant services in the pharmaceutical and cosmetic sectors as it has already proven with its great success in Greece stated Mr. Euthivoulos Paraskevaidis. What is of major importance for us is this company ability to become active outside the boundaries of Cyprus. I believe that our long experience in the markets of the Middle East in combination with Lavipharm's know how creates exciting prospects for such an expansion.

Mr. Euthivoulos Paraskevaidis is well known for his participation in the J&P Ioannou Paraskevaidi Group, one of the largest construction groups in the world. At the same time, the Paraskevaidis Group is active, among others, in the sectors of tourism, hotels, real estate development, wholesale and retail, foods and beverages.

Lavipharm is the largest Greek integrated company that develops, manufactures, imports, promotes and distributes pharmaceutical and cosmetic products and has a strong international activity. The total turnover of the Group reached 248 million ? (212 million USD) in 2000.