KRKA, d. d., Novo mesto

Settlement of olanzapine case in Germany

Krka, d. d., Novo mesto (hereinafter Krka) announces to the interested public the following:

1. On 5 December 2008 Krka published the information that its subsidiary TAD Pharma GmbH stopped marketing the product Zalasta (olanzapine) in Germany, after German Supreme Court decided that the patent for the olanzapin active pharmaceutical ingredient in Germany is valid and changed the decision of the court of first instance, which nullified the same patent.

2. TAD Pharma reached out of the court settlement with the patent holder. Based on the settlement, TAD is liable to pay for the damages in the amount of EUR 2,800,000 caused to the patent holder by selling its product Zalasta in Germany.

3. The damages from the settlement will not have a negative impact on the business results of the Krka Group in 2009, since there were relevant provisions formed already in 2008

Date: 13. 10. 2009