Released on = October 5, 2006, 10:36 pm

Press Release Author = RNCOS

Industry = Retail

Press Release Summary = The Brazilian economy is showing a tough time to its
pharmaceutical industry. The government, after descending to second spot, is looking
for solutions in price control, innovations and productions at ground level.

Press Release Body = The pharmaceutical market of Brazil has fallen to second place,
next to Mexico. According to the national pharmaceutical organization, FEBRAFARMA,
Brazil ranks 6th in the list of countries with the cheapest drugs (in $). It also
includes the 16% tax on services and distribution of goods (ICMS). As per
FEBRAFARMA, the estimated total annual pharmaceutical market till July 2005 was US
$8 billion with 1.59 billion units, excluding ICMS and other drug applicable taxes.

The sinking economic growth in 2002 resulted in the downfall of the drugstores share
in retail sales. But with the inversion in economic conditions, share starts
ascending again in 2003. It strongly suggests that to grow by value and volume, the
pharmaceutical market depends on per capita GDP and also, to raise the salaries and
private drug expenditure, the economy needs to be stable.

The government (via regulatory bodies) believes that price control and domestic
pharmaceutical production and innovation, for both pharmacy and public sectors, is
the solution of the prevailing problem. Consequentially, the government is expecting
to extend competitiveness, leading to price cuts in drugs.

“Brazil Retail Industry Forecast (2006-2010)”, a recent report by RNCOS,
put forth that the bars’ and drugstores’ sales share remained constant
from 2001-2003. In 2001, drugs and bars sales were 18.6% of total retail food market
that declined to 18.4% in 2003.

The RNCOS’ research report also addresses the problems and facts that are
critical to the success of Brazilian Retail Industry, like:

- Potential growth of the retail Industry
- Competitors for Brazilian retail industry
- Opportunities for the Brazilian Retail Industry
- Major driving forces for Industry
- Threats related With the Brazilian Retail Industry

RNCOS’, \"Brazil Retail Industry Forecast (2006-2010)\" report provides
extensive research and rational analysis on Brazilian Retail sector. This report
helps clients to analyze the opportunities critical to retail industry’s
future success. Detailed data and analysis helps potential investors to navigate
through the evolving market opportunities in Brazil’s retail industry.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

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