Continuing
the already started changes within the company, all with the purpose of
optimizing expenses and rationalizing business processes, Podravka d.d.
Management Board has reached a resolution on preparing a Provision Program for
surplus workers, which includes severance payments, during September and
November 2012.

This
resolution has been made in the interest of aligning Podravka’s business with
the market economy, i.e. in order to increase business efficiency.

Provision
Program will be implemented in line with the new restructuring processes within
the company, and as always, taking into consideration the opinions of social
partners and of every individual worker. By the end of the year this Provision Program might include
about 200 workers.