GORENJE, d.d., Velenje

Gorenje performed well and on target in the first nine months of 2006. High sales volume, innovative products and cost control as the key to success. Extremely tough conditions in supply and sales markets.

Gorenje results for the period January - September 2006

The Supervisory Board of Gorenje d.d. today at its 4th Meeting discussed and adopted the non-audited financial report of Gorenje d.d. and the Gorenje Group for the first nine months of 2006. In the opinion of the Supervisory Board the company performed well and on target.

Gorenje Group:
Net revenue from sales in the amount of SIT 184,713.2 million is 4.2 % (SIT 7,472.4 million) higher than in the same period last year, reaching 75.7 % of the plan for 2006. Using comparable data, net revenue from sales is higher by SIT 13,680.2 million, which is equivalent to 8.0 %. Net revenue from sales in the first nine months of 2006 is not entirely comparable with the figure reported for the same period in the preceding year due to the divestment of the Hyundai companies in July 2005.

Operating profit before depreciation/amortisation, which is a rough estimate of earnings from operating activities, amounts to SIT 13,792.4 million or 5.1 % more than in the same period in 2005 and represents 67.2 % of the 2006 annual plan.

Profit before tax, amounted to SIT 3,665.9 million, or 1.1 % more than in the same period in 2005 and represents 59.9 % of the 2006 annual plan.

Consolidated net profit in the amount of SIT 3,092.3 million exceeds the figure reported in the same period in 2005 by 1.5 %, reaching 58.3 % of the plan for the current year. The net profit also includes the net profit share of minority shareholders amounting to SIT 29.5 million.

Earnings per share were SIT 367.3, which is 5.5 % more than in the same period last year, reaching 77.4 % of the plan for 2006.

Parent Company Gorenje d.d.:
Net revenue from sales in the amount of SIT 120,874.4 million is 10.3 % (SIT 11,335.4 million) higher than in the same period last year, reaching 71.7 % of the plan for 2006. Net revenue from sales is not entirely comparable to the same period in the previous year and the annual plan due to the amalgamation of the subsidiary company Gorenje Indop d.o.o..

Operating profit before depreciation/amortisation (calculated as operating profit increased by depreciation/amortisation costs) amounts to SIT 7,976.5 million, which is 6.6 % more than in the same period in 2005 and represents 63.9 % of the annual plan.

Profit before tax, amounted to SIT 1,244.2 million, or 35.9 % more than in the same period in 2005 and represents 41.7 % of the 2006 annual plan.

Net profit for the period amounts to SIT 1,011.0 million, which is 7.8 % more than in the same period last year, and 41.2 % of the planned annual net profit.

Please, find the attached files!

The public announcement will be also available on the company's website at www.gorenje.com.

Date: 26. 10. 2006