Pursuant to the provisions of the Rules and Regulations of the Ljubljana Stock Exchange d.d., Financial Instruments Market Act (ZTFI), and the Corporate Governance Code of the Ljubljana Stock Exchange and Warsaw Stock Exchange, the company Gorenje d.d., Velenje, hereby makes the following announcement:

Following the previous announcements relating to the exploration of strategic partnership opportunities, Gorenje, d. d., is providing the following update on the process development.

On 8 May 2018, Gorenje, d. d., received 3 binding offers by the interested strategic partners from Asia and on 9 May 2018, the two best bidders have been requested to improve their offers.

The management board of Gorenje, d.d., has assessed the received offers as well as the improved offers together with its financial and legal advisor and with the key shareholders who have been active in the process. The following criteria have been considered: the strategic elements, which were the basis for the initiation of the strategic partnership process, the feasibility of the transaction, and the price per share offered to the shareholders. Based on these criteria, Chinese group Hisense has been selected as the best bidder. Hisense has offered price 12 EUR per share subject to its acquisition of 50 % + 1 share of Gorenje shares in the takeover procedure.

The selected bidder has committed to launch a takeover intent within 15 days and to a takeover offer in accordance with the statutory deadlines.

The process of the exploration of strategic partnership opportunities has thus been completed and Gorenje, d.d., will no longer publish any updates on the process unless mandatory by law.

Disclaimer: The English text for all announcements is for information purposes only!

The information in this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenjegoup.com, for at least 5 years from the date of this announcement.