At yesterday's regular meeting, the Krka Supervisory and Management Board drew up the proposal that Krka pays its shareholders a dividend of EUR 1.40 gross per share, which is an increase of over 27% on last year's dividend.

Krka Company has its dividend policy set out in the five year development strategy, which is updated every two years. The new development strategy is establishing a strategic change in dividend policy. In the past years, the strategy pursued a policy of moderate dividend growth in a way that the amount of dividends typically did not exceed one quarter of net profit from the previous year. Pursuant to the guidelines of the new strategy, Krka will pay dividends in the amount of up to one third of net profit from the previous year.

At its meeting the Supervisory Board prepared a proposal on the use of the 2010 accumulated profit, together with the Management Board. They will propose to the Company's General Meeting, which takes place on 7 July 2011 that the Krka Company's accumulated profit for 2010 of EUR 168,944,967.18 be allocated as follows:

The amounts for dividends, for other profit reserves and for carrying forward to the next year are calculated taking into account the number of own shares as at 6 April 2011.