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1 <p align="center"><b>In line with strategic orientation to pharmaceuticals as
2 its core business, PLIVA d.d. (hereinafter PLIVA) has established yet another
3 subsidiary - VETERINA d.o.o. (hereinafter VETERINA)</b></p>
4 <p align="center"> <b>VETERINA d.o.o. Established</b></p>
5 <p> Having redesigned its key business processes and defined a new vision and
6 business strategy, PLIVA has laid strong foundations for being a modern pharmaceutical
7 company oriented to Europe and the rest of the world. Based on strategic orientation
8 to pharmaceuticals as its core business, PLIVA has decided to spin off its Animal
9 Health & Agrochemicals business segment into an independent company in its full
10 ownership.</p>
11 <p> The newly founded company VETERINA shall start its independent operations
12 as of 1 January 2001. Mr. Nenad Stiglic, D.V.M., will be the president of VETERINA's
13 management board. The company is seated in Kalinovica, Svetonedjeljska, but
14 will, till further notice, conduct its business from the current address: Zagreb,
15 Ulica grada Vukovara 49. </p>
16 <p>All existing products from the range of biological and chemopharmaceutical
17 products, as well as feed additives, disinfectants, pest and rodent control,
18 and plant protectants shall remain in the VETERINA's portfolio under their registered
19 names. </p>
20 <p>PLIVA believes that the veterinary production spin off will repeat the success
21 of cosmetics and foodstuffs segments' spin off and that VETERINA, like CEDEVITA
22 d.o.o. and NEVA d.o.o., will assume an equally prominent position on the Croatian
23 and neighbouring markets. </p>
24 <p>VETERINA shall further develop close relations with its customers in desire
25 to meet their specific needs in the field of animal health protection and to
26 upgrade agricultural production as a precondition for health food production
27 and human health protection. </p>
28 <p>Nenad Stiglic, the former director of Animal Health & Agrochemicals business
29 segment, and now the president of VETERINA d.o.o. management board, commented:
30 "Establishment of VETERINA d.o.o. will help us develop and upgrade our core
31 business in a more transparent manner than before. A new organisation and independence
32 of management will give VETERINA more flexibility and opportunity to promptly
33 respond to the changing environment and thus become more attractive and interesting
34 to potential strategic partners". </p>

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