'CROATIA-EQUITY REPORT' PUBLICATION PRESENTED IN ZAGREB

ZAGREB, July 26 (Hina) - Shares of the Zagrebacka bank, the pharmaceutical company Pliva, the food-processing firm Podravka, the Viktor Lenac shipyard and the Karlovac-based brewery should be bought, the Reiffeisenbank Austria d.d. (RBA) Investment Banking Department recommended in its publication entitled "Croatia- Equity Report", presented in Zagreb on Monday. This publication contains information about eight (8) Croatian companies. #L# One should have a neutral stand toward shares of 'Plava Laguna' tourist company and the Privredna bank in Zagreb, while the magazine recommends that it is better to sell rather than purchase shares of 'Kras', the confectionery producer. The publication presents results of businesses and predictions of future growth of those eight companies, shares of which are quoted on Croatian capital markets. The current situation on Croatian securities markets is not brilliant, but positive changes are expected in the second half of this year, RBA analysts wrote. The publication also includes movements of macroeconomic indicators in Croatia. According to macroeconomic projections, the gross domestic product (GDP) of Croatia will be down by 1.5 percent this year, but in 2000 it should rise by 0.7 percent. Croatia's industrial output is likely to drop by 2.5 percent in 1999 while next year it should increase by one percent. A rate of inflation and the exchange rate of kuna are stable, according to RBA analysts who do not predict any big change in this field. The purpose of "Croatia-Equity Report" is to stimulate potential investors and offer them as much information as possible. (hina) ms