GORENJE, d.d., Velenje

The Supervisory Board adopted the Annual Report for the Year 2006. Very satisfying business performance: another record-breaking EUR 1.1 bn volume of Gorenje Group Sales in the Year 2006

9th Supervisory Board Meeting of Gorenje, d.d.

At the meeting, held on 23 April 2007, the Supervisory Board of Gorenje, d.d., adopted audited Annual Report of Gorenje, d.d., and the Consolidated Annual Report of the Gorenje Group for the Year 2006, and confirmed the proposal for the application of the balance-sheet profit for the year 2006. The Supervisory Board has valuated the business performance as very satisfying, on account of another record-breaking volume of EUR 1.1 bn Gorenje Group sales. The Supervisory Board adopted the Report on the revision of Annual Report, which will be submitted to the Annual General Meeting.

The Supervisory Board has discussed and adopted the Management Board proposal of the company's share capital increase (approved capital) in accordance with the shareholders' resolution, passed at the Annual General Meeting in December last Year. With this, the formal procedure of 15 % increase of the registered share capital by issuing 1,830,000 ordinary transferable registered shares with no par value, has started and the shares will be classified in the same class as the existing regular shares of this issuing entity. To the share capital increase from the pre-emption rights all the shareholders' will be invited to inscribe, who will be on the day of the announcement of the application for new shares, registered in shareholders' ledger of the company Gorenje, d.d. It is foreseeing, that the Management Board will the excess shares, which the existent shareholders' will not inscribe, offer to the European Bank of Reconstruction and Development EBRD) and/or International Financial Corporation (IFC) and to the company, established for this purposes by the management of the Gorenje Group.

The Supervisory Board Report of the company, the Summary of the Annual Report for the Year 2006 and the Annual Report in Slovene language, were published at the SEOnet electronic system on 23 April 2007.

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

Date: 23. 4. 2007