KRKA, d. d., Novo mesto

Additional explanations relating to published business performance in 2006

We inform the interested public that in the year 2006 Krka, d. d., Novo mesto (hereafter Krka) will presumably form additional provisions for lawsuits in the amount of approximately SIT 5 billion (EUR 21 million) based on evaluation of outstanding lawsuits against Krka.

Based on preliminary estimates of unaudited accounts for 2006, the net profit margin was 19.3%, return on equity 21.8% and return on assets 14.1%. Operating profit (EBIT) was SIT 35.5 billion (EUR 148 million), EBITDA was SIT 44.2 billion (EUR 184 million).

For 2007, Krka plans to earn a net profit of approximately EUR 130 million.

The planned net profit of Krka group for 2007 is EUR 130 million.

Date: 26. 1. 2007