GORENJE, d.d., Velenje

Changes in the Management Board of Gorenje, d.d.

On 18 July 2004, Ph.D. Andrej Vizjak, Member of the Management Board of Gorenje d.d., submitted his letter of resignation to the president of the Supervisory Board of Gorenje, d.d. , resigning from its function of the member of Gorenje's Management Board. Ph.D. Andrej Vizjak is resigning for personal reasons, however he will stay on at Gorenje as a consultant of the Board for strategic development, as a member of the supervisory board of Gorenje Vertriebs GmbH in Munich, as well as in the program for cost rationalisation and efficiency growth of the Gorenje Group.

Gorenje's Management Board will continue its work with four members. In the transitional period the commercial and marketing areas will be covered by the president of the Management Board personally.

Date: 19. 7. 2004