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:

Mercator Group exceeded EUR 2.1 billion of revenue in the period 1-9 2012, which is approximately the same as in the corresponding period last year. Revenue in Slovenia dropped by 2% while in international markets, it rose by 4.4%.

Economic slowdown in the region, persisting debt crisis, drop in Slovenian import and export, and negative changes in exchange rates in Serbia had a strong negative impact on Mercator Group performance. As a result, Mercator Group saw a loss of EUR 22 million in the period 1-9 2012.

Mercator Group invested EUR 55,976 thousand in the development of retail network in the period 1-9 2012, gaining over 43 thousand square meters of new gross area, mostly by operating lease, but in compliance with the new strategy, investment policy is much more conservative.

Changes in our target markets also require some changes in the operation of the entire Mercator Group. To this end, the Management Board of Mercator, d.d., formed a new vision and mission of the Group, and specified the principles of corporate activities.

Attached you can find the Business Report of the Mercator Group and the company Poslovni sistem Mercator, d.d., for the period 1-9 2012.

This announcement will be published on the company’s website at www.mercator.si as of November 13, 2012, and will remain posted for a period of at least five years.