Pursuant to
provisions of the Capital Market Law and provisions of the Zagreb Stock Exchange
Rules, we would like to inform you that the Supervisory Board of Podravka Inc.
on its session on 17th February 2009 has given its approval for the decision
reached by the Management of PODRAVKA Inc. on the establishment of the company
with limited liability in the Republic of Turkey.

The above mentioned company
will be headquartered in Istanbul, and Mr Zdravko Dimač has been appointed as
Managing Director.

Pursuant to law of the Republic of Turkey, the new company
shall have two members. These are PODRAVKA Inc. with 75% of investment in the
share capital and DANICA Ltd. with 25% of investment in the share capital in the
company.