GORENJE, d.d., Velenje

Good Sales in the first nine months of the year 2004

Solid Profit, due to the negative impact of all price increases for strategic raw materials

Gorenje, d.d. is hereby publishing the non-audited consolidated Financial Report of Gorenje Group for the Period January - September 2004, according to International Financial Reporting Standards.

At its 17th Meeting held on November 19, 2004 the Supervisory Board of Gorenje, d.d., was also informed about Financial Report of Gorenje Group and Gorenje, d.d. for the period January - September 2004, according to the Slovenian Financial Reporting Standards.

In the period January to September 2004 Net revenues from sales amounted to SIT 154,376.9 million, indicating an increase of SIT 13,225.3 million or 9.4% over the sales from the same period in 2003 and 77% of 2004 plan.

Net profit for the January to September 2004 of SIT 3,756.3 million reached 70% of the projected figure for 2004. Net profit for the period also included the minority interest in the amount of SIT 39.9 million.

Similar to the semi-annual forecast, it is still anticipated that aggregate negative impact of all price increases for strategic raw materials and consumables, above all steel plate and petrochemicals would not exceed SIT 1.3 billion in the second half of the year, which in addition to the unplanned increase of labour costs represents SIT 1.6 billion of unplanned drawback.

The above negative impact of adversary economic elements will have to be neutralized as much as possible during the year by optimization and search for cheaper alternative supply sources; selective price increase of household appliances and enhancement of their sales structure; and rationalization of expenses in all segments of operations.

In the last quarter of the year the Management Board will continue to carry out all business operations which will contribute to the final achievement of forecast business objectives for the year 2004.

Gorenje Group is at the final stage of the annual plan 2005 process. The annual plan for the year 2005 will be as a topic discussed on The Supervisory Board Meeting on December 16 2004.

Date: 19. 11. 2004