SIGNING OF THE PRELIMINARY COOPERATION CONTRACT BETWEEN ZASTAVA AND FIAT ON JULY 31- ITALIANS WILL BE THE OWNERS OF 70 % OF SHARES STARTING SEPTEMBER

The Preliminary Cooperation Contract between the factory "Zastava" from Kragujevac and Italian company "Fiat" is still in the phase of reconciliation, and the local authorities are announcing that this document will be signed on July 31.

According to the words of the Trade Union President of "Zastava", Mr. Zoran Mihajlovic, the Mayor of the City of Kragujevac said to the members of this trade union that the preliminary cooperation contract with "Fiat" will be signed on July 31, for sure.

Mr. Mihajlovic said that the final Strategic Partnership Contract with the company "Fiat" is supposed to be concluded in the middle of September, when "Fiat" will become the owner of 70 % of shares of "Zastava"