GORENJE, d.d., Velenje

Istrabenz Gorenje energetski sistemi Group Partner in the GEN-I Joint Venture

Krško, Slovenia, 6 October 2006 - Having received green light by the supervisory boards of both companies, IGES and GEN-energija signed the following documents at Krško today:

Agreement on the sale and purchase of a 50-percent share in Istrabenz Gorenje d.o.o., previously 100-percent owned by IGES;

Agreement Between Stockholders of GEN-I, trgovanje in prodaja električne energije, d.o.o., (with head office in Krško), a joint venture company based on equal partnership established by the aforementioned document; and

Cover Agreement for the purchase of electricity, which allows GEN-I to market and sell a set percentage of electricity at the disposal of GEN energija as follows: 30 percent in 2007, 50 percent in 2008 and 60 percent in the subsequent years.

Please, find attached file!

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

Date: 6. 10. 2006