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1 <p align="center"><b>PLIVA increases its stake in PLIVA Krakow from 81.5% to 87.67%</b></p>
2 <p>Zagreb, December 16, 1999</p>
3 <p>PLIVA today announced that it has acquired an additional 6.17 per cent share
4 capital of PLIVA Krakow S.A. from Handlowy Investments S.A., for a cash consideration
5 of USD 16,008,726.29.</p>
6 <p>Handlowy Investments S.A. and PLIVA formed a purchasing consortium in October
7 1997, during PLIVA's acquisition of its majority stake in PLIVA Krakow S.A.
8 (former K.Z.F. "Polfa" Krakow S.A.).</p>
9 <p>By this acquisition PLIVA has become the owner of 87.67 per cent stake in PLIVA
10 Krakow S.A. </p>

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