Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d., the Financial Instruments Market Act, the Corporate Governance Code for Joint Stock Companies, and in accordance with the provisions of the Code of Best Practice for WSE Listed Companies, the company Gorenje, d.d., Velenje, hereby makes the following announcement:

Velenje, July 17, 2014 — Gorenje signed with International Finance Corporation (IFC) signed a debt-to-equity conversion agreement for 1,005,020 newly issued shares. The agreement is consistent with the resolution of the 20^th Gorenje, d.d., Shareholders Assembly of August 23, 2013 on the increase of share capital by in-kind contributions. Gorenje has recently also signed a debt-to-equity conversion agreement with Gorenjska banka which subscribed 1,315,166 new shares. The IFC debt to equity swap successfully completes Gorenje's third capital increase.

At the Shareholders Assembly held on August 23, 2013 Gorenje shareholders confirmed three capital increases. The first and the second capital increase included offering of newly issued shares in exchange for cash contributions and they resulted in nearly EUR 27 million of fresh capital for Gorenje in Slovenia and abroad.

The third capital increase allows debt to equity conversion to financial institutions that were Gorenje creditors as at the day of the 20^th Shareholders Assembly, up to the amount of EUR 9,681,964.61, by issue of up to 2,320,186 new shares. The price per share in all three capital increases as EUR 4.31.

After the conversion of IFC receivables into 1,005,020 new shares, and Gorenjska banka receivables into 1,315,166 new shares, Gorenje share capital will have increased in the third capital increase by exactly the amount specified in the Shareholders Assembly resolution.

Disclaimer: The English text for all announcements is for information purposes only!

The information in this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenje.com, for at least 5 years from the date of this announcement.