Liburnia Riviera Hotels

Joint Stock Company-Opatija

INVITATION TO BID

for the purchase of an establishment of Liburnia Riviera Hoteli d.d. Opatija

(April 2002)

1. SUBJECT OF PURCHASE

Liburnia Riviera Hoteli d.d. Opatija (hereinafter: LRH) invites Croatian and foreign natural persons and legal entities to submit their bids for the purchase of an establishment.

The natural persons and legal entities, as well as the owners of shares in the business and shareholders and the responsible persons of the legal entities, who until the deadline for submitting bids have any outstanding debts to LRH as evident from LRH’s records, or who without valid legal ground and written approval by LRH were or are in possession or in any other way used real or movable property owned by LRH, shall not be entitled to submit their Bids. LRH shall not be under obligation to consider any bids of such Bidders.

Pursuant to Art. 129 para 1 of the Labour Act all employment contracts of the employees who work for the establishment purchased shall be transferred to the Buyer (their new Employer).

More detailed information on the land registry records for the above mentioned property are enclosed with the Bidding Documentation.

Note: The price shall be calculated in accordance with the mean exchange rate of Rijecka banka d.d. Rijeka as of the date of payment effected.

2. BIDDING DOCUMENTATION

The procedure of collecting bids and selecting the Best Bidder shall be conducted in accordance with the Terms stipulated in the Bidding Documentation. Bidders are advised to obtain the Bidding Documentation from LRH from April 29, 2002, to May 20, 2002.

The cost of the Bidding Documentation is HRK 700.00 and shall be paid to the LRH account No. 2300007-1100080825 with Rijecka banka d.d. Rijeka, Branch Office in Opatija - reference No. 02 210402.

3. The Buyer shall be obliged to engage in hotel and restaurant business in the establishment purchased.

4. BIDDING TERMS

Bids must be submitted in accordance with the Terms stipulated in the Bidding Documentation.

Foreign natural persons and legal entities may, under the assumption of reciprocity, acquire real property in the Republic of Croatia if this is approved by the Minister of Foreign Affairs of the Republic of Croatia acting on the previously obtained opinion of the Minister of Justice of the Republic of Croatia.

S e c u r i t y:

The Bidders shall pay security amounting to ten (10) percent of the starting purchase price in HRK to the LRH account No. 2300007-1100080825 with Rijecka banka d.d. Rijeka, Branch Office in Opatija - reference No. 02 260502, or - foreign natural persons and legal entities - in EUR to the foreign currency account of LRH No. 33880-621-84-25000 with Rijecka banka d.d. Rijeka, Branch Office in Opatija, and enclose the evidence of payment with the Bid, or they may submit an irrevocable guarantee of a first-rate bank, payable at the first call.

The Bids shall be submitted to LRH in a closed envelope marked BID FOR THE PURCHASE OF A LRH ESTABLISHMENT - April 2002.

The bids shall be submitted to LRH by May 28, 2002 (Monday), until 01.00 PM.

Any additional information may be obtained each working day from 11.00 to 13.00 h on phone No. 710-322.

The establishment may be visited Mondays, Wednesdays and Fridays, from April 29, 2002, to May 24, 2002, from 09.00 h to 12.00 h, showing the Power of Attorney enclosed with the Bidding Documentation.

The Bids received will be opened at the premises of LRH, Hotel Admiral, Maršala Tita 139, on May 27, 2002, at 01.30 h P.M., and this may be attended by the persons who submitted Bids, or their attorneys.

LRH reserves the right to accept any Bid that meets the requirements, or to reject any Bid and to annul the Invitation to Bid and reject all Bids, without any liability.