GORENJE, d.d., Velenje

Conclusion of the option contract for the redemption of 7.64% of treasury stock from the SOD, d.d.

On 21 June 2004 Slovenian Compensation Fund, d.d. and Gorenje, d.d. concluded a Contract on establishing put and call option, on the basis of which SOD shall have to right to sell and Gorenje, d.d. shall have the right to purchase in total 932,300 own shares (7.64%) in four equal parcels in the period from January 2005 to July 2006.

Please, see the attached file!

Date: 12. 7. 2004