GORENJE, d.d., Velenje

Gorenje business performance in the first half year 2005, successful and in line with the plan; conditions on the sales and purchase markets are still exceptional difficult. About the business performance discussed also the Supervisory Board at the 23. Supervisory Board Meeting, held on July 28, 2005.

Summary of non-audited consolidated Financial Report of Gorenje Group for 1H2005, according to IFRS

In the 1st H 2005, consolidated net revenues from sales amounted to SIT 114,263 million (EUR 477 m), implying a 15.3% increase over 1st H 2004 and 49% of the 2005 plan. From the total growth, 6.1% of the growth (SIT 7,024.2 m) was a result of the incorporation of the company Mora Moravia, a.s. (Cooking appliances producer, Czech Republic), into the Gorenje Group from the January 2005.

Gorenje Group EBITDA rose to SIT 8,294 m (EUR 34 m), up by 7.1% and reached 45% of the annual plan 2005.
Profit before tax amounted to SIT 2,348 m, showing 7.5% increase in comparison with the 1st H 2004 and realised 42% of the 2005 plan.
Net profit rose by 1% to SIT 1,915 m (EUR 8 m) and reached 40% of the annual plan for the year 2005.

The attached report will be also available on the web-site www.gorenje.com .

The Supervisory Board has on the 23. Supervisory Board Meeting on 28 July 2005 elected Mr Jože Zagožen for a deputy Chairman of the Gorenje, d.d., Supervisory Board.

Date: 28. 7. 2005