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GORENJE, d.d., Velenje

Optimistic Gorenje response on the topical circumstances in the financial markets

In Gorenje we see the circumstances in our sales markets, first in a form of financial crises, which started in the financial sector in the USA and has splashed also into Europe, and secondly as a cooling of economic activities in Europe, specially in the West, as a result of a dropping trend, above all in a mature economies.

In spite of all those not promising circumstances is the sales of Gorenje in Europe in line with the planed dynamic. The consequences of the recession in a form of smaller demand are the most intensive in Ireland, France, England, Spain, Italy, and also in Germany The global market of household appliances is dropping, but Gorenje looking relatively is selling similar extent as in the comparable last year period, which means, that in comparison with the competitors we are even increasing the market shares. The slight demand in the West Gorenje is compensating with the very good sales in the Eastern European markets, to point out Russia, Ukraine, Czech Republic, Slovak Republic and in Romania. Since of the acquisition of the company Atag in June this year, we are increasing the sales activities in the Benelux region.

The Management Board of Gorenje, has decided, based on the estimation of this circumstances and projections, that Gorenje Group will not change the planes till the end of this year, from the revenue point of view, neither from the net profit point of view. Members of the Board will together with the co-workers intensively proceeding with all the measures to reach the plan, and they are also preparing different alternative plans for the future.

The core business of the Gorenje Group are Home appliances, where Gorenje is with the innovation and design of the appliances strengthening their own position, reputation and also increasing the sales of products with the high value added. The last acquired prestige's brand name Atag Gorenje position even more strengthening We have to point out, that Gorenje is on the CEE markets among the three the most respected manufacturers. Very thoughtful dispersed sales and distribution network of Gorenje, in more than 60 countries, ensures less exposure to the risks, due to the still very different situations on the markets.

Beside the core business Gorenje is controlled orientating also into other areas. This year the ecology and energetics are very promising and they are successfully overcoming the difficult operation of Home appliances division.

The financial crisis has not touched Gorenje Group in important extent. With the adequate relations with the banks all over the Europe, Gorenje still has the access to the sources, which these banking system is enabling. In these days we even strengthen the contacts to assure the reinvesting of loans also for the future.

The Management Board is convinced, that Gorenje share is very good long-term investment, but is at the moment undervalued. In spite of these oscillations the Board believes that the demand will increase, while internal value of share is much more higher as shown on the market.

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


Gorenje, d.d.,
The Management Board


Date: 13. 10. 2008