Press release

Kranj, 22 September: The Securities Market Agency issued, on 21 September 2006, the decision on confirming the prospectus for the issue of 153,000 registered shares of the company Iskraemeco, d.d., Kranj.

Kranj, 22 September: The Securities Market Agency issued, on 21 September 2006, the decision on confirming the prospectus for the issue of 153,000 registered shares of the company Iskraemeco, d.d., Kranj.
On the basis of the relevant decision and the resolution adopted by the General Meeting on 1 August 2006, the Managing Board of Iskraemeco, d.d. will, in compliance with applicable legislation and thorough publication in the Official Gazette on Friday, 29 September 2006, invite the shareholders to subscribe and pay 153,000 registered shares, thus raising added capital at the level of 2.75 billion SIT.

The Order adopted by the District Court of Kranj confirming the compulsory settlement procedure against Iskraemeco, d.d., Kranj, was accorded the authority of final decision on 15 September 2006. In accordance with this Order the company will pay 80 percent of its debts, on interest-free basis, to the suppliers within four years, and 100 percent to the bank creditors within eight years, at EURIBOR + 1.2 percent.

The company has all its production capacities fully engaged and operates in accordance with its business plan. It is currently undergoing the business and financial restructuring process to comply with the adopted financial reorganisation plan.