Pursuant to the provisions of the Code of the Warsaw Stock Exchange, Rules and Regulations of the Ljubljana Stock Exchange (Ljubljanska borza, d.d.), and the relevant legislation, the company Gorenje, d.d., hereby makes the following announcement:

Following the announcements published on 9th November 2017 and 29th November 2017 in relation to the exploration of strategic partnership opportunities and appointment of the financial and legal advisors, the Management Board of Gorenje, d.d. provides an update on the status of the activities carried out to date.

During December 2017, Rothschild & Co., on behalf of Gorenje Group, contacted a number of international groups active in the household appliances and related industries in order to test their interest in a potential strategic partnership with Gorenje Group, which could also lead to participation of the selected strategic partner in Gorenje’s share capital.

Following the execution of a non-disclosure agreement, in the second half of January 2018 an information package and a process letter were dispatched to potential partners who confirmed their interest in further assessing a potential for partnering with Gorenje Group.

The process letter outlines rules and timing on the basis of which potential partners are invited to submit an indicative offer for the partnership with Gorenje Group by 7th March 2018.

After the assessment of the received indicative offers from a strategic perspective, certain prospective investors will be invited to participate in the due diligence process.

During the second phase, prospective partners will be provided with additional information including access to a Virtual Data Room on Gorenje Group, selected site visits to Gorenje Group facilities and meetings with top management.

In addition, during the continuation of the process, some potential partners might decide also to directly approach major shareholders to discuss the terms of the potential partnership.

The Management Board of Gorenje, d.d. will release the next update on the process by 15th March 2018.

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.