Compulsory Settlement Procedure Confirmed

Kranj, 31 August 2006: Today, at Kranj District Court, the creditors have confirmed with almost 80% majority the financial reorganisation plan of the Iskraemeco, d.d. company proposed by the company's management.

Kranj, 31 August 2006:Today, at Kranj District Court, the creditors have confirmed with almost 80% majority the financial reorganisation plan of the Iskraemeco, d.d. company proposed by the company's management. In compliance with the above stated plan, the company's creditors will be paid off in four or eight years. Accepted financial reorganisation plan means successfully terminated Compulsory Settlement procedure that was introduced in February this year.
On the basis of the conclusion of the company shareholders meeting in August, the company owners will increase the company capital for 2.75 billion SIT in September.
Successful termination of the Compulsory Settlement procedure as well as performed capital increase assure all business partners of the company that the company's program is good and promising, and that the company is stable both financially and economically.