Announcement on Acquisition: Ownership structure

The FIMA Group d.d. acquired and holds a total of 576,880 shares of Podravka d.d. which represents 10.64% of the equity of PODRAVKA d.d.

Pursuant to the provisions of Article 115 of the Act on the Securities Market, and Article 173 on the Rules of the Zagreb Stock Exchange, we would like to inform you that on 7 July 2006 an announcement was received on the acquisition of 576,880 shares of Podravka d.d. by the FIMA Group d.d. with its seat in Varaždin, Anina 2, MBS: 080144704, represented by the director and sole member of the Management Board, Mr. Milan Horvat residing in Varaždin.

Based on the Contract on the Purchase of Podravka d.d. Shares concluded with Franck d.d. Zagreb, and the purchase of the said shares on the Zagreb Stock Exchange d.d. and the Varaždin Stock Exchange d.d. in the period from 22 May 2006 to 14 July 2006, the FIMA Group d.d. acquired and holds a total of 576,880 shares of Podravka d.d. which represents 10.64% of the equity of PODRAVKA d.d.

The aforesaid announcement of the acquisition by the FIMA Group d.d. will be published on 14 July 2006 in the daily ‘Vjesnik’. We will thereafter forward to you the announcement published in ‘Vjesnik’.