On 22nd February 2011 the management of Sava d.d. concluded an agreement about selling a 50% business share of Sava d.d. in the mixed-ownership company for the manufacture of roll covers Sava-Schäfer d.o.o, Kranj, with the long-standing partner, the company SchäferRolls GmbH & Co. KG. This decision is a reasonable continuation of the arrangements which both partners defined in the Joint Venture agreement of 2001, when this mixed-ownership company was established, as well as a result of the effective cooperation in the past decade.

On the day of concluding the agreement, 22 February 2011, the rubber manufacturing company Sava-Schäfer d.o.o., will become wholly owned by the German partner SchäferRolls GmbH & Co. KG, and will rename SchäferRolls d.o.o. The ownership of real estate – the premises of the roll covers manufacturing – will remain owned by Savatech d.o.o. All other agreements about the cooperation between the partners remain effective too.
 
The Kranj-based rubber manufacturing company Sava-Schäfer, d.o.o. employs about 40 people. The company has been effectively managed by the director Gregor Ažman and in 2010, it generated a profit of €100,000, while sales revenues amounted to €3.7 million (about 2% of total Sava Group's sales).

The company SchäferRolls GmbH & Co. KG with its head office in German Renningen is one of the leading world producers of roll covers (www.schaeferrolls.com). Besides the Sava-branded products and services, the company Sava- Schäfer d.o.o. has already marketed products and services under the partner's SchäferRolls brand.

In the light of the scale of operations, the sale of the business stake in Sava-Schäfer d.o.o. does not significantly affect the financial position of Sava d.d., however, it will improve a short-tem liquidity of the company.

The decision about selling the business stake creates basis for a long-term development of the roller covers production in Kranj, and an opportunity for new jobs.

The full ownership by SchäferRolls GmbH & Co. KG - the renowned manufacturer of covers for industrial rolls - will provide the present Sava-Schäfer d.o.o. (in the future: SchäferRolls d.o.o.) with access to the most recent know-how, and a wide sales network, which will significantly accelerate marketing of roll covers in the Kranj-based company.

Any important changes to data in the company's prospectus shall be promptly released in public announcements on SEOnet of the Ljubljana Stock Exchange. This public release will also be available on-line at the address www.sava.si as of the day of the announcement for a period of 5 years.