Public notice regarding the acquisition of the company Atag

• Headquarters: Duiven, The Netherlands
• 3 complementary Brand Names:
  • ATAG since 1948
  • Pelgrim since 1920
  • ETNA since 1856
• 420 employees (380 The Netherlands, 40 Belgium)
• 2007 revenue from sales: EUR 150 million
• Market share: the Netherlands > 30%, Belgium 10%
• Own Brands in the high, middle and low (entry) price segments
• Sales under own brand names: 75% of sales  → other: OEM, Private label, Retail brands

• Strong and wide range of the own brand names
• Leading market share and high positioned own brand names on BENELUX markets
• Sales of the free-standing appliances on BENELUX markets
• Gain of the prestigeous brand name for the Gorenje Group, particularly for the Western European markets
• Purchase synergies
• Good organization and effectiveness of the business model (supplementary program)
• Increase of cooperation between Gorenje and Atag
• High skilled management team
• Upgrading of the project engineering within the Gorenje Group

• Coordination between brand names – fit into the Gorenje Group
• Question, regarding the expansion of the current sales abroad / local market effectiveness

• Acquisition price for 100 % stake amounted to EUR 130 million
• Gorenje pays with own shares and the rest by cash  → 1,070,000 own shares by the price not lower than 6 – months average  (EUR 36,83)
• Agreed lock-up of shares for the period of 4 years
• The shares will also be pledged for the period of 4 years in favour of Gorenje, d.d., against potential risks originating from pre-acquisition period
• After the Deal Closing, Mr. Philip Sluiter becomes the member of the Gorenje Management Board, responsible for
  • Business operation of the Gorenje Group in Benelux
  • Supplementary program of the Gorenje Group
  • Development of the brand name ATAG as prestige’s Gorenje Group brand name for built-in appliances
• Consolidation in the Gorenje Group from 1st of July 2008 onwards

• To accomplish the strategy of growth of Gorenje as Pan-European supplier in the industry
• To strengthen the market position of the Gorenje Group Brand Names on the West-European Markets
• To round up the portfolio of the brand names with high positioned brand name ATAG
• To fill up sales grey spots on the Benelux market, and to gain from 10 to 30% of the market share of brands ATAG, Etna, Pelgrim

• Excellent strategic match with the potential of the faster joint growth of the both companies
• Sales/Marketing, Purchase, Product/R&D and Production Synergies

• Favourable impact of the Acquisition on the principal financial ratios (Growth of Sales, EBITDA, Net profit, ROS, ROE,... )
• Further growth of the Shareholder Value Creation

• Till 1992 – Continental Can Europe, project manager
• From January 1992 – independent entrepreneur
• 1992 - 2005 – Take-over and restructuring of miscellaneous companies in various industries. Corporation with several informal  investors and venture capital companies
• Since January 2006 – CEO of ATAG Europe BV

• Member of Advisory Council of the Twente University
• Member of Supervisory Board of Techfund
• Member of Supervisory Board of TIIN Buy Out Fund
• President of Hockey Club Arnhem

We prepared for you some additional financial information’s, regarding Gorenje acquisition of the company Atag.

Please, find attached file!