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GORENJE, d.d., Velenje

Gorenje to Extend its Manufacturing Facilities for Water Heaters in Serbia

Based on the regulations of the Ljubljana Stock Exchange and the legislation in force, the company Gorenje, d.d., is publishing the following announcement:

In the last four years, basic models of Gorenje Tiki water heaters yielding lower value added have been manufactured in Stara Pazova, Serbia, where production costs are considerably lower than at the Ljubljana plant. This summer, Gorenje announced its plans to improve the profitability of this program by transferring production of high capacity water heaters to Stara Pazova as well, and to gradually shut down the underperforming Ljubljana plant. In order to accommodate the increased capacity requirements at Stara Pazova, the existing plant there will be extended and updated, with technological equipment being transported from the defunct Ljubljana factory. The project, scheduled for completion by the end of this year, will also be supported Serbian regional development funds.

The Serbian Minister of Economy and Regional Development, Mr. Mdađan Dinkić, and Mr. Branko Apat, Management Board member at Gorenje, signed yesterday in Stara Pazova an agreement on a grant in the amount of EUR 1 million, allocated for economic development by the Serbian Agency of Foreign Investment and Promotion, SIEPA.

Disclaimer: All announcements in English language are only for information purposes!

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

Gorenje, d.d.,
The Management Board
Date: 03.09.2010