KYIV, December 14, 2006 – Kyiv-based investment bank Dragon Capital has placed a minority stake in Laona, one of Ukraine’s fastest-growing and most innovative pharmaceutical distribution companies. The primary and secondary share placements gave Laona a post-deal market capitalization of $73m.

The Laona shares, which were placed with EU and US investors in the form of warrants, are now being traded on the Vienna Stock Exchange and mark the first such share offering for a company in Ukraine’s increasingly lucrative pharmaceutical distribution industry.

“This was the first major offering to portfolio investors in Ukraine‘s highly attractive pharmaceutical market, which is expected to grow on average by 25% over the next five years – one of the highest growth rates in the world,” said Dragon Capital co-founder Kamil Goca. “We were thus not surprised about the substantial interest in the offering.”

“From an investor’s perspective, Laona is a unique company in the sector, thanks to its strong corporate governance, young motivated management, extensive distribution network and innovative business approach,” Goca added.

Laona management and shareholders were also pleased with the share placement.

“We’re very happy that investors appreciate what we’re trying to do with the company,” said Laona co-founder Vladimir Dzhus. “We remain committed to making Laona the number one pharmaceutical distributor in the country, and this placement will help us in achieving our goals.”

For Dragon Capital, Ukraine’s leading investment bank, the placement helps cap off what has been a stellar year for the company. The firm led the country in virtually all investment banking categories in 2006, completing 12 IPOs and private placements and raising more than $400m in new equity capital.

Laona was founded in 1993 by four Ukrainian entrepreneurs and has quickly become one of the nation’s leaders in pharmaceutical wholesale. Today, Laona is also a leader in custom bonded warehousing and has started expanding into the retail segment.