LUKA KOPER, d.d., Koper

Press Conference, 9th July 2009

At the 9th July press conference, Gregor Veselko, President of the Luka Koper Management Board, made a presentation of business operations over the previous period and introduced measures that are to be implemented in order to improve results. During Jan - Jun period some areas of operations did spectacularly well: liquid cargos were up by 36% on the equivalent period last year, while timber throughput rose 12%; similar can be said for fruit and perishable goods - up by a most gratifying 68%, together with oil derivatives, which were 19% higher. Recording a year on slump of fifty percent, vehicle throughput remains disappointing; the 140,064 unit total is also some thirty percent below expectations. Standing at 165,220 TEUs, container freight is just three percent off the 2008 record level, as well as three percent ahead of anticipations. January to May 2009 income from operations was ten percent lower than during the same period last year, while operating expenses increased by four percent over the same period. This was, for the most part, a consequence of the signing of a new collective agreement and the according increase in the cost of labour, as well as depreciation calculations resulting from the extensive infrastructure investments.

"Luka Koper has found itself in somewhat fragile circumstances. Past decisions, internal divisions and a severe recession have undoubtedly all played their part. This is, however, by no means a hopeless situation: through carefully considered measures, the fortunes of our company will be restored", commented Mr. Veselko, who immediately upon taking up his new position, implemented a cost-optimization program, as well as the rationalization of a number of work processes and marketing activities. There shall also be a reduction in reliance on external contractors, together with a withdrawal from rental agreements which are surplus to current operational needs. A report is being prepared as to the justification of some current investments, mostly those into hinterland terminals, as well as the new headquarters and passenger terminal buildings. The second half of 2009 shall see a focus on investments that will yield income within the short term. These shall most definitely include the creation and arrangement of the pier extension hinterland storage areas at the Container Terminal, and new alcohol reception and storage facilities at Pier I, the construction of which are already underway.

This information will be available on company's website from 10.7.09 onwards.

Date: 10. 7. 2009