Novartis Pharma ZAO
B. Palashevsky per., 15
RF-123104. Moscow
Russian Federation

Tel +7 095 967 1270
Fax +7 095 967 1269

To Whom It May Concern

Letter of Recommendation

I would like to hereby confirm that Novartis is currently engaged in a significant «1C:Enterprise v 8.0» implementation project involving a team of consultants from «1C-Rarus». The consultants on our team are led by Konslantin Smirnyagin.

While the project is still running, the first phase, implementing «1C:Accounting» has been mostly completed and the system has now been in life operation without major issues since July 1st.

The areas covered in the completed part of the project include both Russian tax and statutory accounting as well as IAS accounting. Together with «1C-Rarus» we have developed a methodology allowing us to only post journals only to one general ledger (Russian) and generate the IAS accounts using a combination of mapping (from Russian to IAS accounts) and a limited use of off-balance sheet accounts for transaction with different accounting treatments.

The second phase of the project, the Logistic module of «lC:Enterprise v 8.0» with significant customer-specific enhancements, is on-going with a planned go-live date of January lst, 2006.

I believe the good results have only been achieved through strong dedication of own and external, «1C-Rarus», resources. The «1C-Rarus» consultants informally assumed responsibility for the success of the project and worked as a part of one joint team.

Yours sincerely,

Jiri Lhotak
CFO, ZAO Novartis Pharma

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