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

Mercator Group generated EBITDA of EUR 25.8 million in the first quarter of 2018, topping the comparable last year's figure by 36.5%. Results from operating activities also improved considerably, amounting to EUR 9.1 million in the first quarter of 2018, which is EUR 9.3 million better than in the comparable period of the preceding year. Moreover, Mercator Group revenue for the first quarter of 2018 increased by 1.3% relative to the comparable period of the year before.

In first quarter the income statement shows improvements in business performance and operating efficiency, resulting in higher EBITDA. The Group's EBITDA for the first quarter of 2018 reached EUR 25.8 million, while in the comparable period of the year before it amounted to EUR 18.9 million.

Tomislav Čizmić, President of the Management Board of Mercator Group, points out: »The results from operating activities in the first quarter of 2018 reached EUR 9.1 million, which is significant improvement of EUR 9.3 million relative to the comparable period of the preceding year. Thus, our new strategy provides business growth and good business results. The Group introduced a new store concept, refurbished and updated many of its stores, improved the competitiveness of its services, and adjusted assortment. We are strengthening our competitive position, particularly the offer of fresh and local brands for which the demand among the customers is the strongest. Mercator is still bearer in innovations; we have just introduced a mobile wallet for mobile payment system with Pika card.«

Mercator Group remains focused on its core activity, and further improvement of profitability remains its key goal. Focus of the Group's activities will remain at care for the consumers, the best products and services, modernly designed shopping environment on the greatest possible number of store locations, and expanded and enriched offer of fast-moving consumer goods.

In 2018, Mercator continues to settle all of its liabilities to financial and business partners in compliance with the agreed terms and deadlines.

This announcement will be published on the company’s website at www.mercatorgroup.si as of May 23, 2018, and will remain posted for a period of at least ten years.