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<p align="center"><b>Changes in PLIVAs Management Board and acceptance of Corporate 
  Governance Principles</b></p>
<p>Zagreb, December 9, 1999</p>
<p>The organisational changes resulting from the PLIVA XXI project and the further 
  internationalisation of the Companys activities entail changes in the roles 
  and responsibilities of the members of the Management Board. The fact that PLIVA 
  is continuously expanding its business operations stresses the need to extend 
  the current membership of the Management Board by appointing a new member.</p>
<p>Accordingly, the Supervisory Board of PLIVA d.d. decided at its meeting held 
  on 09 December 1999 to appoint Mr. Zeljko Peric as the new member of the Management 
  Board in charge of Finance, and to appoint Ms. Erika Kaspar, previously in charge 
  of Corporate Planning and Finance, as the Member of the Management Board in 
  charge of Communication and Corporate Affairs.</p>
<p>Zeljko Peric was born in 1958. He graduated from the University of Zagreb, 
  Croatia, School of Economics. From 1984 to 1990 he worked at INGRA on investment 
  projects outside of Croatia. He was also Finance Director of a project in Malaysia 
  and after returning to Croatia, he was appointed manager of the department for 
  implementing projects in the Middle East. From 1990 to 1992 he was senior advisor 
  in the International Economic Relations Department with the Ministry of Foreign 
  Affairs. After that he worked at Hidroelektra as Finance Director. He started 
  working in PLIVA in 1993 as Director of the Consulting Department (today called 
  Engineering). Since 1996, he has served as Finance Director of PLIVA d.d. He 
  has attended several seminars at prominent educational institutions, such as 
  Harvard University, Boston, USA, Management Centre Europe, etc. Mr. Peric is 
  a member of the Supervisory Boards of Zagrebacka Banka and the Zagreb Stock 
  Exchange.</p>
<p>The Supervisory Board also accepted the proposed Corporate Governance Principles 
  which makes PLIVA the first company in Croatia to regulate corporate management 
  procedures as a whole. This is especially supported by two separate committees: 
  the Audit Committee and the Remuneration Committee. The introduction of Corporate 
  Governance Principles will enable a higher level of managerial accountability 
  and transparency.</p>
<p>Commenting on the changes to the Management Board and the acceptance of Corporate 
  Governance Principles, Zeljko Covic, M.Sc., president of PLIVAs Management 
  Board, said: "The Companys new organisational model incorporates all business 
  areas and levels of the Company, including changes to the Management Board. 
  During the last few years, PLIVA has achieved significant results in increasing 
  business operations, expansion into new markets, and the Companys operations 
  have become increasingly internationally oriented. Simultaneously, all areas 
  of domestic and international financial transactions have become key segments 
  of PLIVAs operations. Consequently, PLIVA needs to have a member of the Management 
  Board in charge of Finance who would also be CFO. I firmly believe, based on 
  all the projects he has successfully managed up to now, that Mr. Zeljko Peric 
  is completely qualified for such a very important position.</p>
<p>The importance of Communication and Corporate Affairs very clearly stresses 
  the need for a member of the Management Board that will be capable of managing 
  these broad activities in a global environment. Due to her previous achievements 
  and vast experience in investor relations, which is becoming an increasingly 
  important segment of corporate communication and whose significance is continuously 
  growing, I believe that the change in Ms. Kaspars position within the Management 
  Board from Corporate Planning and Finance to Communication and Corporate Affairs 
  will be a significant contribution to the newly defined strategy and new organisational 
  model of the Company.</p>
<p>Furthermore, the proposed areas of Corporate Governance Principles cover the 
  most significant concerns of PLIVA's investors and stock exchange regulators 
  as well as improve the co-operation and confidence existing between the Company's 
  Supervisory and Management Boards."</p>
<p>As a result of these latest changes, PLIVAs Management Board consists of the 
  following five members: Zeljko Covic, president of the Management Board and 
  CEO; Dubravko Mak, Vice President and COO; Dr. Radan Spaventi, Vice President 
  and CSO; Erika Kaspar, Vice President and Director of Communication and Corporate 
  Affairs; Zeljko Peric, Vice President and CFO. </p>
1	dpavlin	1.1	<p align="center"><b>Changes in PLIVAs Management Board and acceptance of Corporate
2			Governance Principles</b></p>
3			<p>Zagreb, December 9, 1999</p>
4			<p>The organisational changes resulting from the PLIVA XXI project and the further
5			internationalisation of the Companys activities entail changes in the roles
6			and responsibilities of the members of the Management Board. The fact that PLIVA
7			is continuously expanding its business operations stresses the need to extend
8			the current membership of the Management Board by appointing a new member.</p>
9			<p>Accordingly, the Supervisory Board of PLIVA d.d. decided at its meeting held
10			on 09 December 1999 to appoint Mr. Zeljko Peric as the new member of the Management
11			Board in charge of Finance, and to appoint Ms. Erika Kaspar, previously in charge
12			of Corporate Planning and Finance, as the Member of the Management Board in
13			charge of Communication and Corporate Affairs.</p>
14			<p>Zeljko Peric was born in 1958. He graduated from the University of Zagreb,
15			Croatia, School of Economics. From 1984 to 1990 he worked at INGRA on investment
16			projects outside of Croatia. He was also Finance Director of a project in Malaysia
17			and after returning to Croatia, he was appointed manager of the department for
18			implementing projects in the Middle East. From 1990 to 1992 he was senior advisor
19			in the International Economic Relations Department with the Ministry of Foreign
20			Affairs. After that he worked at Hidroelektra as Finance Director. He started
21			working in PLIVA in 1993 as Director of the Consulting Department (today called
22			Engineering). Since 1996, he has served as Finance Director of PLIVA d.d. He
23			has attended several seminars at prominent educational institutions, such as
24			Harvard University, Boston, USA, Management Centre Europe, etc. Mr. Peric is
25			a member of the Supervisory Boards of Zagrebacka Banka and the Zagreb Stock
26			Exchange.</p>
27			<p>The Supervisory Board also accepted the proposed Corporate Governance Principles
28			which makes PLIVA the first company in Croatia to regulate corporate management
29			procedures as a whole. This is especially supported by two separate committees:
30			the Audit Committee and the Remuneration Committee. The introduction of Corporate
31			Governance Principles will enable a higher level of managerial accountability
32			and transparency.</p>
33			<p>Commenting on the changes to the Management Board and the acceptance of Corporate
34			Governance Principles, Zeljko Covic, M.Sc., president of PLIVAs Management
35			Board, said: "The Companys new organisational model incorporates all business
36			areas and levels of the Company, including changes to the Management Board.
37			During the last few years, PLIVA has achieved significant results in increasing
38			business operations, expansion into new markets, and the Companys operations
39			have become increasingly internationally oriented. Simultaneously, all areas
40			of domestic and international financial transactions have become key segments
41			of PLIVAs operations. Consequently, PLIVA needs to have a member of the Management
42			Board in charge of Finance who would also be CFO. I firmly believe, based on
43			all the projects he has successfully managed up to now, that Mr. Zeljko Peric
44			is completely qualified for such a very important position.</p>
45			<p>The importance of Communication and Corporate Affairs very clearly stresses
46			the need for a member of the Management Board that will be capable of managing
47			these broad activities in a global environment. Due to her previous achievements
48			and vast experience in investor relations, which is becoming an increasingly
49			important segment of corporate communication and whose significance is continuously
50			growing, I believe that the change in Ms. Kaspars position within the Management
51			Board from Corporate Planning and Finance to Communication and Corporate Affairs
52			will be a significant contribution to the newly defined strategy and new organisational
53			model of the Company.</p>
54			<p>Furthermore, the proposed areas of Corporate Governance Principles cover the
55			most significant concerns of PLIVA's investors and stock exchange regulators
56			as well as improve the co-operation and confidence existing between the Company's
57			Supervisory and Management Boards."</p>
58			<p>As a result of these latest changes, PLIVAs Management Board consists of the
59			following five members: Zeljko Covic, president of the Management Board and
60			CEO; Dubravko Mak, Vice President and COO; Dr. Radan Spaventi, Vice President
61			and CSO; Erika Kaspar, Vice President and Director of Communication and Corporate
62			Affairs; Zeljko Peric, Vice President and CFO. </p>