GORENJE, d.d., Velenje

Gorenje realized the option for first parcel own shares purchase from Slovenian Compensation Fund

On 19 January 2005 the main company Gorenje, d.d., realized the option for the purchase of 233,075 own shares (1.9105% stake in the company capital), in accordance with the Contract on establishing put and call option, which was concluded on 21 June 2004 with Slovenska odškodninska družba, d.d. (Slovenian Compensation Fund, d.d.)

The purchase price, under the Option Contract, amounted to SIT 6,485.93 per share and equals the average daily even price of a GRVG share at Ljubljana Stock Exchange, d.d. in the period from 1 July to 31 December 2004.

The fairness opinion on the purchase of own shares under the concluded Option Contract, was prepared from the independent financial adviser in order to ensure equal treatment and protection of all shareholders' interests and was announced on 7 July 2004 (Slovene announcement) and on 12 July (English announcement) at Ljubljana Stock Exchange information system.

Date: 19. 1. 2005