Pursuant to the
provisions of the Zagreb Stock Exchange Rules and the Capital Market Law, we hereby
inform that the process of Podravka product portfolio revision continues.

After completing product portfolio sales and profitability analysis per
markets, Podravka d.d. Management Board passed a resolution on further
discontinuation of 660 products, which were sold on various markets. Total annual
sales of these products in 2011 was HRK 11.5 million, which will have a
positive effect on gross margin amounting to HRK 1.2 million.

Also, a resolution was passed on bakery business restructuring, with the
purpose of reducing production expenses and improving profitability of the
bakery program.