ANNUAL REPORT 06 - Bosnalijek dd

“It is my pleasure to mention the growth of income from sale of 2.82%, especially growth of export of54.19% and growth of net income of 2.42% in relation to previous financial year.“Dear shareholders, esteemed partners, honourable employees,We finished year 2006 once morel with successful business operations,thus continuing a continuous trend of growth and development that hasbeen the characteristic of Bosnalijek in last ten years.Accomplished business results are even more significant being realised invery unpleasant business surrounding with expressive influence of manyfactors, both those specific for pharmaceutical industry at world level,and those specific for our country due to inadequate legal regulation thatwould stimulate development of domestic manufacture and strengthenits competitiveness at international market.In that sense, it is my pleasure to mention the growth of income from saleof 2.82%, especially growth of export of 54.19% and growth of netincome of 2.42% in relation to previous financial year.A greater level of investing into development of new products, clinicaltrials and registrations in the country and abroad of 18.98% is especiallyimportant indicator for our company, because this is investment into asafe and prosperous future.With regard to investments, a year behind us was in the spirit of investinginto new equipment and new technologies, what will contribute to ourefforts directed to constant improvement of quality of our products,increase of our total business excellence and manufacture of new modernmedicines.During year 2006, Bosnalijek shares were the shares that were mostlytraded at the Sarajevo Stock Exchange. In the end of year, Bosnalijekshare has reached the value of 38 KM, what represents a growth of 67%in relation to end of previous year.Bosnalijek business success is the result of a driving energy of itsprofessional and motivated employees, into whose development weconstantly invest.We continuously develop partner relation with the social communitybecause we believe that Bosnalijek social responsibility is wider than itsbasic activity.In accordance with our mission, we realised social activities in previousyear through various forms of acting in the field of education, science,culture, sports and humanitarian action taking care about quality ofhuman life.We gave scholarships to 174 pupils and students, thus stimulatingeducation and studying of perspective young people, of whom some willtomorrow be the driving force of Bosnalijek.Commitment to quality and recognising the needs of our products' usersoffer us safety that Bosnalijek will also in future successfully respond tochallenges of demanding international market, working at the satisfactionof employees, shareholders and wider social community.Edin ArslanagićChief Executive Officerserving Your health COMPANY CEO's LET TER ANNUAL REPORT 06 5