Pharmaniaga Holds Much Potential for Boustead

KUALA LUMPUR, June 7, 2011 – With the entry of Boustead Holdings Berhad (Boustead) as the majority shareholder of Pharmaniaga Berhad, this pharmaceutical group can look forward to brighter prospects given the Boustead Group’s intention to strengthen the earnings potential of Pharmaniaga.

For the year ended 31 December 2010, Pharmaniaga Berhad registered a profit before tax of RM45.5 million. This was achieved on the back of a turnover of RM1.38 billion, an improvement of 6% compared with RM1.3 billion registered in the previous year.

YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Chairman, Pharmaniaga Berhad commented after Pharmaniaga’s Annual General Meeting, “We are delighted with the prospects that Pharmaniaga holds for the Boustead Group. Though this listed entity has seen a contraction in earnings, particularly due to provisions, we are confident that there is an enormous upside to this business”.

“The Malaysian pharmaceutical market has been expanding due to the increase in per capita income in addition to an ageing population. The pharmaceutical sector was said to be worth RM4.6 billion as at the end of 2010 and there are clear signs that the sector is expected to grow over the next several years”.

Pharmaniaga’s operations are divided into four core areas, namely generic pharmaceutical manufacturing, commercial, logistics and medical products and services.

“Boustead intends to strengthen Pharmaniaga’s management and we have kicked off this process with the introduction of new Board members. We are also reviewing certain processes with the view of strengthening Pharmaniaga’s operational efficiencies. To this end, in April 2011, a new Managing Director has been brought on board, Dato’ Farshila binti Emran, who will spearhead Boustead’s aspirations for Pharmaniaga”.

“With the concept of new clinics in rural areas as well as 1Malaysia clinics along with the Ministry of Health’s plans for the refurbishment and development of new hospitals, we are bullish on our prospects”, concluded YBhg Tan Sri Dato’ Lodin.

Forward looking statements

This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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