Contract on Extended Co-operation between Konzum and FINA

At today's press conference held in Agrokor Mr Zoran Maksić, President of FINA Management Board and Mr Josip Zaher, President ofKonzum Management Board signed a Contract on extended co-operation and together with Mr Ivan Šuker, Minister of Finances and President of the Supervisory Board of FINA and Mr Ivica Todorić, President of the Agrokor Corporation and President of the Supervisory Board of Konzum presented their further joint projects.

Contract on Extended Co-operation between Konzum and FINAWith this Contract two large Croatian business companies FINA and Konzum enter for the first time the joint project in which through synergy of knowledge, experience and innovativenes they improve their mutual co-operation and raise cash transactions on a higher level. The above stated Contract will additionally ensure closer co-operation of the largest domestic retail chain and the domestic agency for financial transactions. Such a co-operation is another of many novelties offered lately on the market by FINA. Mr Zoran Maksić, President of the FINA Management Board has pointed out that this act is confirmation that their clients have recognised FINA as a company which can provide complete services to large companies such as Konzum. The goal of the business policy of this financial agency is to create a modern and competitive company. Accordingly it has recognised different demands of large companies compared to others and adjusted themselves to the needs of these companies. On time and in the right way FINA has responded to the demands of its clients for quality and favourable services. The increased volume of services, regulated in the above stated Contract, has not lead to increased expenses or costs of operations in FINA.

FINA is today a state-owned company, stricken by the well-developed banking systems, which can result in the loss of a considerable part of its business. Mr Ivica Todorić, President of the Agrokor Corporation said: "We are proud to be able to increase the value of a state-owned company and contribute to its further development. The co-operation with FINA so far has included the payment system that functions excellently. Therefore, due to the previous business projects, which were carried out to the full satisfaction of both sides,we continue our co-operation with trustin the field of cash transactions. We also plan a further development of our business relationship between Konzum and Fina through various projects which are already under way. These future projects will make FINA and Konzum even more attractive to customers and consumers and additionally strengthen their position on the domestic market." Since FINA has a wide network of branch offices on the territory covered by Konzum too, there is a powerful synergy potential, additionally strengthened by the fact that FINA has adjusted to the market conditions even in view of competitiveness of its compensations, which will contribute to the decreased costs of financial transactions of Konzum. The novelty in the Contract represents a direct invoicing of FINA to Konzum for the provided services, which will enable the payment of pre-tax. Until now this service has been invoiced through commercial banks. However, as they are not included in the VAT system this tax relief could not be used.