GORENJE, d.d., Velenje

Successful performance of the Gorenje Group in the first nine months

Gorenje continues the growth trend, in spite of harsh economic conditions in the key markets

At its 24th meeting held on October 28, 2005 the Supervisory Board of Gorenje, d.d., discussed the Financial Report of the Gorenje Group and Gorenje, d.d., for the period January-September 2005, and appraised them as successful.

Gorenje, d.d. is hereby publishing the Summary of the non-audited consolidated Financial Report of the Gorenje Group for the Period January-September 2005, according to the International Financial Reporting Standards.

In the period January-September 2005, consolidated net revenues from sales amounted to SIT 177,240.8 million, indicating an increase of SIT 22,863.9 m or 14.8% over Jan-Sep 2004 (the increase in the amount of SIT 10,640.5 m should be attributed to the inclusion of the company Mora Moravia, a.s., into the Group on January 2005, contributing 6.9 percentage points to the Group growth) and representing 75.4% of the 2005 annual plan.

The Gorenje Group EBITDA rose to SIT 13,118 m (EUR 55 m), up by 7.6%, and reached 71% of the annual plan 2005.
The profit before tax amounted to SIT 3,714 m, showing a 6.8% decrease in comparison with the first nine months 2004 and realised 66% of the 2005 annual plan.
The net profit decreased by 17.4% to SIT 3,135 m (EUR 13 m) and reached 65% of the annual plan for the year 2005.

Please, see the attached file regarding the Summary of the non-audited consolidated Financial Report of the Gorenje Group for the period January-September 2005, according to the International Financial Reporting Standards.

The public announcement will be also available on the www.gorenje.com web-site.

Date: 28. 10. 2005