Lek Invests in its Hotel in Kranjska Gora to Upgrade Hotel Lek's Quality and Facilities

23. 5. 2001

Kranjska Gora, May 23 – At a press conference today, the representatives of Hotel Lek in Kranjska Gora unveiled their investment plan for the hotel. They wish to improve the quality of their facilities and also maintain their competitive position and market share. The Slovenian pharmaceutical company Lek, the founder and the owner of the hotel, will invest SIT 250 million in the project.

“ We at Lek realize the importance of offering our guests a comprehensive package of amenities. We decided to develop and expand Hotel Lek by offering additional and improved facilities for our guests" emphasized Matjaž Konda, the director of the Hotel as he presented the plan.

The investment project involves renovation of the attic rooms in the pool area of the hotel, building handicap access to the rooms and all other functional facilities of the hotel, remodeling the pool area as well as updating the swimming pool’s technical and heating equipment.

After the renovation, the recreational area will be particularly attractive to our guests. This area will accommodate 120 guests at one time and include water sport facilities, saunas, fitness rooms and associated facilities.

In the water recreation area, we plan to renovate the existing pool and provide additional features such as a system that creates currents for swimmers. We will build a new children’s kick pool and a new thermal pool measuring 40m2 that will include massaging jets, springs, massaging beds and whirlpools.

In this area, there will be new Finnish and an infra-red saunas, steam baths, ceramic lounge chairs for back massage, massaging showers, and an outdoor Finnish sauna with a small pool and a smaller “odorium" (Finnish sauna with ethereal oils).

A fitness center emphasizing cardiovascular equipment will be another new addition. Among the many features of this area will be treadmills for running, stationary bicycles, rowing machines and step climbers.

The preliminary work for the renovation will start after July 20th allowing the hotel stay open and continue normal operations through October 6th, 2001. Then plans call for the hotel to close for a month. The hotel will operate at half capacity (without use of the pool as well as rooms in the pool area) through the second part of November and the first part of December. The renovation is expected to be complete by December 10th. The official opening of the remodeled hotel is scheduled for December 20th, 2001.

Lek, the Slovenian pharmaceutical company, is committed to constantly improving the quality of life for all. For this reason, Lek wishes to upgrade the facilities and operations of Hotel Lek, a small subsidiary of the Lek Group, and thus contribute to the improvement of the hotel’s overall program as well as to the development of the well-known Slovenian resort Kranjska Gora.

End

This press release contains statements and forecasts of Lek’s future business operations. The forecasts include estimates formed on the basis of all the information currently available. Should these forecasts prove to be unreliable, the actual business results could be different from those anticipated.

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For additional information, please contact:

Katarina Klemenc, Head of the Corporate Communications Department, Lek d.d. at:

Phone number: ++ 386 1 580 22 43