The 11th Annual General Meeting of Lek d.d.

9. 7. 1999

At the AGM Lek shareholders discussed the report on business operations for 1998 and the proposal on profit distribution, they appointed the auditor, and they elected a new member of the Supervisory Board.

The report on business operations for 1998 was presented in detail by Metod Dragonja, President of the Board of Management and CEO, who emphasized that despite the upheavals in the business environment Lek brought the 1998 business year to a relatively successful conclusion.

“After a succession of record growth rates in previous years the growth rate last year can be considered as stable. It is worth mentioning, however, that the company achieved the largest business volume in its entire history", began the report on business operations last year by the President of the Lek Board of Management.

During his presentation of the company’s business operations Metod Dragonja also gave his assessment of Lek business operations this year. Among other things he said that a rebalanced business plan for 1999 is being prepared and discussed with 1.5% sales growth rate planned. He added that the Board of Management would endeavour for Lek to partially compensate a loss of sales and profits for 1999 in the year 2000 and thus achieving a 12% business growth rate.

The shareholders also passed the following resolution, namely, that the net profit of the 1998 business year remained undistributed. The President of the Board of Management answered in reply to the question of one of the shareholders that the Board of Management would endeavour to secure a stable income for shareholders and stable dividends in the future.

The resolution proposed by the Supervisory Board, namely, that the AGM appoint the auditing company KPMG Slovenija d. o. o. as auditor for the business year 1999, was also adopted.

The AGM ended with the election of a new member of the Supervisory Board. From 8 July 1999 jn a new member of the Supervisory Board of the joint-stock company will be Jo`e Obersnel, who comes from the insurance company Triglav d. d.. He is a member of the Board of Management there and Assistant CEO for the area of finances and accounting. He will represent the interests of the capital side in the Lek Supervisory Board and will replace Vinko Ap{ner M.Sc., whose membership in the Lek Supervisory Board expired on 14 May 1999.