GORENJE, d.d., Velenje

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

Slovenska odškodninska družba, d.d. (Slovenian Compensation Fund, d.d.), has in accordance with the Contract on establishing put and call option, which was concluded on 21 June 2004 with the company Gorenje, d.d., informed on 5. July 2005 the company Gorenje, d.d., about the realization of the option for the sale of 233,075 shares (1.9105% of Gorenje, d.d., capital) of the company Gorenje, d.d., at the sales price of SIT 6,321.84. The company Gorenje, d.d., has in accordance with the as per agreement payment conditions paid the shares and gained them on 4 August 2005. The total number of own shares after the transaction is 717,192 or 5.8786% of Gorenje, d.d., capital.

The sales price was defined in accordance with the Contract, so that the origin price amounted to SIT 6,200 per share plus net profit per share in the year 2004 and minus dividend from the accumulated profit 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: 4. 8. 2005