Open - Ina

Partnership with MOLWe would particularly like to emphasize the twoimportant exploration and development projects whereINA and MOL work together. A joint exploration operationin the area on the Croatian - Hungarian border resultedin the discovery of the Zalata gas field. In 2008 INA willcontinue exploration activities on the Croatian side ofthe prospect. Another joint exploration agreement hasbeen signed by the partners for the Stari Gradac - Potonyexploration area.Our cooperation is developing successfully in a number ofother activities.Looking forward to continuedstrong performanceIn its strategy INA reiterated its commitment to creatingvalue for its stakeholders by increasing and upgrading itsbusinesses and continuing to improve the quality of itsproducts and services.We have been successful in augmenting our hydrocarbonreserves and we intend to continue doing so throughcompletion of the existing prospects and new concessions.The modernization of our two fuel refineries is progressingwell. Some other units will be completed by the end of2008. Producing higher value products that meet the EUspecification will enable INA to meet demand for suchproducts in the wholesale and retail markets in Croatiaand in the region.I would like to thank our employees, a large number ofthem also as shareholders in INA, for their contribution tothe good results of the company. I believe that together wewill achieve further growth and enhanced profitability.Tomislav DragiËeviÊ16 Introduction