Shareholders supported the majority of proposals given at the General Meeting of Lek d.d.

12th Annual General Meeting of Lek d.d.

At the Meeting, Lek’s shareholders discussed the report on business operations for the year 1999, the proposal of profit distribution, modifications to the statutes, appointed an auditing company and elected a new member of the Supervisory Board.

The report on business operations for the year 1999 was presented in detail by Metod Dragonja, President of the Board of Management. He pointed out that Lek concluded the business year 1999 with success. Total sales amounted to SIT47,580 million, which was in line with the updated business plans. The net profit amounts to SIT3,120 million. The profit volume is an optimum one, considering the fact that Lek performed numerous projects and activities that serve as a basis for business volume growth in the year 2000 and later. The profit achieved represents a 7.2% yield on the capital according to the Slovene Accounting Standards, and a 12.3% yield on capital according to the International Accounting Standards.

Moreover, the President of the Board of Management presented the trends for the year 2000, which ensure stable growth. This can be achieved through intensified activities in all Lek’s key markets and through the company’s orientation towards a more effective development of new products. For the present year, Lek is planning a 12.8% sales volume growth and an even more rapid profit growth.

The shareholders adopted the report on business operations of Lek in the year 1999.

The proposed distribution of profit was adopted. The dividend for the A-Class and B-Class share equals 800SIT, while the cumulative preference dividend for individual B-Class share amounts to 360SIT. Dividends will be paid out first within 60 days after the Annual General Meeting at the latest. The mode of dividend payment will be determined by the Board of Management of Lek d.d.

The AGM did not adopt the resolution on the modifications of the statutes in the proposed wording, since the proposal failed to obtain 3 of the shareholders’ votes.

The AGM elected a new member of the Supervisory Board. From 4 July 2000, the new member will be Jože Lenič, MSc, from the Capital Funds. In the Supervisory Board he will represent the capital; he will replace Peter Filipič, MSc, whose 4-year term of office in Lek Supervisory Board has just expired. The shareholders expressed their special thanks for his highly professional and conscientious work in the Board.

Upon the Supervisory Board’s proposal, the AGM appointed an auditing company for the business year 2000, namely KPMG Slovenija d.o.o., Ljubljana.

The Annual General Meeting was closed with an announcement of the re-appointment of Dragan Kesič, MSc, as a Supervisory Board member.