GORENJE, d.d., Velenje

Gorenje Acquires a 27.6% Share in Surovina, d.d.

On 28 December 2005, Gorenje, d.d., purchased a 27.6% share in Surovina, d.d., Maribor. That effectively translates into 32,074 shares, which were sold to Gorenje by Surovina Holding, d.d., of Maribor.

The purchase represents the continuation of the strategy adopted by Gorenje in relation to the protection of the environment, which has been identified as a core company activity. Even before this latest transaction, Gorenje was already a major business partner of Surovina, d.d., and for both companies the purchase of a share in ownership is an important step in their further development when it comes to the management of hazardous waste and secondary raw materials. The goal shared by both companies is to provide the market with comprehensive solutions in that area, and a faster penetration of the markets of SE Europe.

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

Date: 27. 12. 2005