Pursuant to the Capital Market Law and
the Rules of the Zagreb Stock Exchange we hereby inform you that on 25th
January 2010 Erste Factoring d.o.o. called Podravka d.d. as the Guarantor to
pay its liabilities from the Financing contract based on a backed bill, signed
with Fima Grupa d.d. as the Client and Podravka d.d. as the Guarantor.

To pay this liability amounting to HRK
102,609,752.86 Podravka d.d. will in majority use a short-term loan given by
the Erste Steiermärkische Bank d.d. Rijeka, while a minor part will be paid
from its own equity. The above mentioned refinancing is a part of an arrangement
reached with the largest creditors of Podravka d.d., whose claims are partially
due in the first quarter of 2010.

After settling this liability, Podravka
d.d. will start a procedure to collect the amount in question from Fima Grupa
d.d., i.e. its legal successors, by using the regress right.

This liability is a part of the earlier
announced risks of HRK 310 million and is the only risk of outflow found up to
the moment of this announcement.