Tuesday, 16th November 2010, Velenje, Slovenia

Gorenje Management Board works to the benefit of all Shareholders

An explanation by the Gorenje Management Board with regard to a response by one of the shareholders – the company Home Products Europe

In order to protect the interests of the shareholders and the company, Gorenje Management Board hereby announces some explanations with regard to further media reports on the proposal of the company Home Products Europe, B. V., to take part in the third round of the seasoned equity offering (capital increase), and to the contents of the writing sent by the Director of the said company, Mr. Philip Sluiter, to the Gorenje Supervisory Board and Management Board.
With regard to the actions of the Director of Home Products Europe, Mr. Philip Sluiter, it is the position of the Gorenje Management Board that the said company is one of 20,848 Gorenje shareholders, of which all have the right to their opinion, as well as perfectly equal rights and possibilities to take part in the corporate governance processes. In the world of business, it is customary for the shareholders to voice their opinions at the shareholders assemblies. Gorenje Management Board enjoys full support and trust of the majority of shareholders, as confirmed by the Shareholders Assembly resolution adopted on July 15th 2010 when the majority supported the work of the Management Board and Supervisory Board in the previous year. Current events and actions can thus be seen as an attempt to assert partial and personal interests by one of the shareholders.
Gorenje Management Board works in full compliance with the company Articles of Association, Bylaws, and relevant legislation, to the benefit of the company and its employees, generating value for all shareholders. Business performance and opinions of the relevant pundits and other professionals point to the fact that despite the globally harsh economic conditions, Gorenje is doing well.
Gorenje Management Board sees the writing by the company Home Products Europe as an expression of disagreement on the part of the company's director Mr. Philip Sluiter with Gorenje's strategy. This year, Gorenje Group adopted a strategic plan for the period 2010 – 2013, which was diligently reviewed and confirmed by the Supervisory Board. The Supervisory Board also confirmed the Business Plan for this year. Both documents were presented at the Shareholders Assembly on July 15th 2010 and at the meetings held with Slovenian and foreign finance analysts, and Gorenje is highly committed to their proactive implementation.  
Operations of the company Gorenje, d. d., and the Gorenje Group, and the activities of Gorenje Management Board are under constant supervision of the Supervisory Board that was confirmed by the Shareholders Assembly. Pursuant to relevant legislation and the company Articles of Association, the Supervisory Board works to the benefit of the company. Furthermore, the Supervisory Board regularly reviews and confirms the interim business reports on company's performance. Gorenje's operations are also regularly audited by an independent auditing company, as well as the company's internal audit service; in addition, an Auditing Committee is also active within the Supervisory Board. Gorenje Management Board has never been hesitant or reluctant in any way to disclose any information to the Supervisory Board to which all required or requested information is regularly submitted.
In the first half of the year, Gorenje's operations were consistent with the planned dynamics. Positive operations and successful pursuit of the goals laid out continues in the second half of the year. Business Report detailing the results of the first three quarters of the year will be announced on November 23rd 2010.
Disclaimer: All announcements in English language are only for information purposes!

Gorenje, d.d.,
The Management Board