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1 dpavlin 1.1 <p><b>Supervisory Board and General Assembly of POLFA Krakow adopt decision to
2     change the company’s name </b></p>
3     <p>Zagreb, 14 December 1998 </p>
4     <p>POLFA Krakow’s General Assembly decided to change the name of the company at
5     its meeting held on 30 November 1998. The new name - PLIVA Krakow - will be
6     officially used after completion of legal procedures dealing with the registration
7     which will be carried out at the Polish court with jurisdiction over the matter.
8     Furthermore, at the same Supervisory Board meeting, the following changes to
9     the Management Board structure were adopted: the resignations of Mr. Jan Matyas,
10     in charge of Marketing and Sales and Mr. Ryszard Ambasz, in charge of Research
11     and Development, were accepted. Thus, the Management Board of POLFA Krakow has
12     reduced the number of its members to four. </p>
13     <p>There are several reasons for deciding to change the name of the company in
14     Krakow. The acquisition of POLFA Krakow in October last year prompted questions
15     about the company’s image on the Polish market. In the first place, a dozen
16     other pharmaceutical companies in Poland carry the term “POLFA” in their name,
17     which makes any marketing campaign quite inefficient, since it is difficult
18     for the market to differentiate one POLFA from the other. Furthermore, POLFA
19     Krakow was not the legal owner of the “POLFA” trademark. </p>
20     <p>On the other hand, as the largest pharmaceutical company in the region, PLIVA’s
21     name is recognised in the pharmaceutical industry as a name that stands for
22     a strong business tradition and excellent co-operation with leading pharmaceutical
23     companies. Furthermore, PLIVA’s name is equated with the remarkably successful
24     privatisation of the company and has very positive connotations on the Polish
25     market. These were the main reasons why the daughter company from Krakow has
26     been given a new name - PLIVA Krakow. </p>
27     <p>Commenting on POLFA Krakow’s name being changed, Zeljko Covic, President of
28     PLIVA’s Management Board said: “POLFA Krakow has now become a clearly integrated
29     part of PLIVA and its strongest area of business - pharmaceuticals. Thus, PLIVA
30     has truly become a domestic company in Poland. Furthermore, this decision indicates
31     that PLIVA Krakow has definitely become a strong pillar of the parent company’s
32     strategy for the beginning of 21st century.” </p>

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