Notification about finality of the Court order confirming compulsory settlement

Istrabenz Holding Company d.d. (Plc) hereby informs the interested public that the Court order confirming the compulsory settlement in Istrabenz Holding Company d.d. in its capacity as debtor, as issued by the District Court in Koper on February 12, 2010 became final on March 3, 2010.

Following the finality of the Court order confirming compulsory settlement, the company Istrabenz d.d. will begin with activities required for the implementation of the financial restructuring plan which anticipates a financial restructuring that will allow the company to become solvent on short- and long-term basis, and thus be able to repay all liabilities to the creditors.

The company intends to repay the creditors by means of assets generated from the sale of company’s property. As already stated within the financial restructuring plan, the entire company’s property will be intended for the repayment of the creditors, with priority given to the property that the company will be able to sell prior to the expiration of determined instalment payment deadline and which will bring about optimal effects either from the perspective of the type of property or the time required for its disposal.

Depending on the type of property and in order to meet the expected sale results, the company will sell its property also by engaging experts authorised to perform the sale of property. With this regard, the company authorised an external consultant, namely the French bank BNP Paribas, to prepare an international tender for an eventual sale of the interest held by Istrabenz d.d. within the company Droga Kolinska d.d.

The company Istrabenz d.d. hereby takes the opportunity to inform the interested public that two agreements executed between the company Istrabenz d.d. and the banks creditors during the compulsory settlement proceedings, have come into force.

The first agreement defines precisely the reciprocal relations and the cooperation between the company Istrabenz d.d. and the banks creditors during the implementation of the financial restructuring plan. The second agreement regulates the joint selling procedure of the shares seized on the basis of repurchase agreements and the distribution of the eventual surplus resulting from realised repurchase agreements.