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1 dpavlin 1.1 <p><b>ORGANISATIONAL CHANGES</b></p>
2     <p>Zagreb, 1st July 1999</p>
3     <p>In response to changes in the environment, and with the aim of generating long-term
4     growth, PLIVA has defined a new strategy within the activities of its PLIVA
5     XXI project. The strategy is based on pharmaceuticals being the core-business,
6     continuously increasing R&D investments and intensifying the internationalisation
7     of the company.</p>
8     <p>Defining the strategy was just part of a comprehensive project of transforming
9     ideas into business success. That is why we have developed or innovated within
10     the PLIVA XXI project, a whole range of processes and systems which support
11     the strategy. A new strategic planning process was created, as well as a new
12     process of introducing and developing new products, internal communication processes
13     and the most challenging of all, the Customer Intimacy project. The new organisational
14     structure that supports the strategy is the largest of all the changes and is
15     being implemented as of 1st July.</p>
16     <blockquote>
17     <p> According to the new organisation, the two basic organisational units within
18     PLIVA Pharmaceuticals are: Pharmaceutical Operations and Technical Operations.
19     Pharmaceutical Operations focus on creating a long-term strategy of pharmaceutical
20     development, as well as carrying out that strategy on target markets. Pharmaceutical
21     Operations consist of Strategic Marketing, Licensing, Medical Affairs and
22     Marketing and Sales. The objective of Technical Operations is to support the
23     realisation of corporate goals by rationally using financial, production and
24     other logistical resources. In addition to Primary and Secondary Production,
25     Technical Operations consist of Maintenance, Engineering, Raw Materials Purchasing,
26     Fixed Assets Purchasing and Logistics.</p>
27     </blockquote>
28     <p>As a result of the new organisational structure new jobs and responsibilities
29     have been defined and new managers appointed.</p>
30     <p>Mr. <b>Zelimir Vuksic</b>, M.D., will be Director of Pharmaceutical Operations.
31     Until now he worked in Marketing and Sales, where he was Director, and has been
32     working in PLIVA since January 1997. His experience in Knoll, where he started
33     his professional career, provided him with knowledge of the pharmaceutical business,
34     and as Director of Marketing and Sales he got very well acquainted with PLIVA.
35     Within PLIVA XXI he was Implementation Director responsible for developing the
36     Customer Intimacy project.</p>
37     <p>Mr. <b>Velimir Gojnic</b>, B.S. Mechanical Engineering., has been appointed
38     Director of Technical Operations. Prior to this, he was Business Manager for
39     Production & Logistics Coca-Cola Beverages Europe plc. in Vienna. Mr. Gojnic's
40     experience in implementing standard operating procedures with IT support in
41     sales, production, purchasing, warehousing and distribution for various operations
42     in 12 countries will contribute to the integration and efficiency of the processes
43     in PLIVA's Technical Operations.</p>
44     <p>The Director of Strategic Marketing is <b>Gerard Cole</b>, M.C.S. Mr. Cole
45     has 21 years of experience in the pharmaceutical industry during which he held
46     various positions, from Director of the Abbott Scandinavia Division to Independent
47     Marketing Consultant for leading multinational pharmaceuticals companies.</p>
48     <p><b>Michele Spelta</b>, M.D., the new Director of Licensing, comes to PLIVA
49     from the Italian pharmaceuticals company Zambon where he worked in the same
50     field (International Licensing/Business Development Manager). Before that, Mr.
51     Spelta worked in the Swiss company Helsinn.</p>
52     <p>There are changes in the Marketing team as well. The new Product Manager for
53     the CEFTA countries is <b>Kenneth Peterson</b>, who held the same position in
54     Pfizer, and the new Product Manager for the countries of the CIS is <b>Massimo
55     Verenini</b>. <b>Nikolaus Zimmermann-Meinzingen</b> has been appointed Marketing
56     and Sales Training Manager. Mr. Zimmermann-Meinzingen previously worked in Bayer's
57     subsidiary in Austria.</p>
58     <p>The new Director of PLIVA Krakow is <b>Tomasz Jazwinski</b> who built a successful
59     career in ABB where he also gained valuable experience in management. He has
60     held various positions, from Manager of Purchasing in ABB Elwy, to Management
61     Board member in ABB Zwar in Warsaw. His experience in restructuring processes
62     will be very useful in his new job.</p>
63     <p><b>Nenad Stiglic</b> is returning to PLIVA as Director of Animal Health as
64     of 1st July after having worked in the company Veterinaria, where he was head
65     of foreign representative offices. His knowledge in the field of animal health
66     and of the Croatian market will enable this segment of PLIVA's operations to
67     further develop. <b>Marko Smetisko</b>, M.D., and <b>Boris Teski</b> have decided
68     to leave PLIVA and continue their professional careers in other companies. We
69     would like to use this opportunity to thank them for their contributions.</p>
70     <p>We believe that the newly appointed managers are a valuable addition to an
71     already successful PLIVA team, which will continue to successfully manage changes
72     and fulfil the set objectives. </p>

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