Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d, and the relevant legislation, the company Poslovni sistem Mercator, d.d., hereby informs the shareholders and the public of the following:

At today's session, the Supervisory Board of Poslovni sistem Mercator, d.d., approved the Mercator Group Business Plan for 2016. The key objective still remains further improvement of profitability and improvement of cash flows from operating activities (EBITDA). By continuing to implement the four key strategic objectives: business optimization, focus on core activities and consumer with profitability and growth, Mercator Group will reach pledged objectives. The largest increase in new sales area and a wider range of renovated area are planned in the markets of Slovenia and Serbia.

For 2016, Mercator Group is planning to generate revenue of EUR 2.6 billion, which is somewhat more than in 2015. On all markets of Mercator's operation, except for Croatia, growth in revenue is planned for 2016, however the highest generated revenue will be in Slovenia (56.2%) and Serbia (35.7%). In Slovenia, Serbia and Montenegro sales growth is planned mostly as a result of opening of new sales units, in Bosnia and Herzegovina increase in rental income is planned. A drop of revenue is planned for Croatian market mostly due to closure of the remaining retail units market program in the first half of 2015.

The performance improvement trend started in 2015 will continue in the year ahead, when Mercator Group's net profit in 2016 will amount to EUR 55.3 million.

In 2016, Mercator Group will allocate EUR 34 million for investment. Majority of the investment will be allocated for refurbishment of existing stores, majority of them in Slovenian and Serbia where the increase of new sales and a wider renovated area is planned. For investment in Slovenia, 58.2% of total assets is planned, while in Serbia it is planned to invest 27.2% of total assets. In 2016, Mercator Group will continue with the sale of non-operating assets ant the project of Mercator real property monetization.

In executing our marketing activities, Mercator shall maintain focus on the consumers in the coming period, offering the best value for their money by providing the best choice of well-priced products. We are continuing with quality offer of fresh products and competitive pricing to our customers. Particular attention is paid to appearance of our stores. We introduce new technologies and services that allow faster shopping, leaving our customers with more of their valuable time and thus improving shopping experience.

Business plan of the Mercator Group and the company Poslovni sistem Mercator, d.d., for the year 2016 is attached.

This announcement will be published on the company’s website at www.mercatorgroup.si as of February 5, 2016, and will remain posted for a period of at least five years.