A Sales and Purchase Agreement was signed today in Ljubljana between Podravka
d.d. and Droga Kolinska d.d. for the Belsad brand according to which the food company
from Koprivnica became the owner of the above mentioned fruit spreads brand.

 The Belsad brand covers marmalades and jams and since
2006 Podravka has been producing this product range for Droga Kolinska as an
outsourcing service.

 Podravka processed fruit products have been present on
the markets of Croatia, Slovenia, Bosnia
and Herzegovina, Serbia,
Montenegro and Macedonia.
The purchase of the Belsad brand will enable an expansion of the processed
fruit product range to the Slovene market as well as strengthening its current
market position. The sales of products under this brand are expected to
commence in April.

 Podravka is one of the leading food companies in the
region of South-east and East Europe. The most
significant Podravka brands are Vegeta, Podravka soups, Lino, Čokolino,
Dolcela, Fini-Mini, Studena, Studenac and Lero.