GORENJE, d.d., Velenje

Gorenje opens new refrigerators & freezers plant in Valjevo

Valjevo, Slovenia, 16 October 2006 - One of the biggest European manufacturers of household appliances, Gorenje, today officially opened a new plant for the production of refrigerators and freezers in Valjevo, Serbia. The total investment is valued at EUR 20 million. The first chest freezer left the factory, which employs 330 people, on 15 September. According to forecasts, production will reach 50,000 units this year and 400,000 next year. The plant will manufacture appliances for all Gorenje brands and markets worldwide. By establishing production in Serbia Gorenje has acquired the local manufacturer status as part of the strategy to create the conditions that will enable the company to protect its market shares in the long-term. At the same time, Gorenje has started building a wide network of local suppliers. This effectively means that in addition to creating new jobs at the new plant, numerous other jobs are being created with suppliers all over Serbia. The ribbon was cut by Chairman of the Gorenje Management Board Franjo Bobinec and the Serbian minister of foreign economic relations, Milan Parivodić.

Please, find attached file!

The public announcement will be also available on the www.gorenje.com web-site.

Date: 16. 10. 2006