Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and applicable legislation, the Management Board of Pozavarovalnica Sava, d.d., Ljubljana ("Sava Reinsurance Company" or "Company ") hereby announces the following:

The capital increase of Sava Reinsurance Company is progressing in accordance with the resolutions of the General Meeting of 11 January 2013 and the Prospectus for the Offering of New Shares ("Prospectus"). In the capital increase, the Company is raising at maximum € 55.000.001 by issuing at maximum 7.857.143 POSR shares at the price of € 7,00 each.

The first round of subscription was from 23 May 2013 to and including 6 June 2013 (12:00 hrs). The newly issued shares of Sava Reinsurance Company were offered to the existing shareholders registered as such on 11 January 2013 (when the General Meeting passed the resolution on the capital increase). Existing shareholders had a pre-emptive right to subscribe for new shares in proportion to their shareholding of Sava Reinsurance Company. In the first round, 288 investors subscribed and paid for 3.841.560 shares in the total amount of € 26.890.920,00 or 48,89 % of all newly issued shares. Of this, 2 subscription forms in the total amount of € 10.056.004,00 referred to the special conditions in accordance with the Prospectus, for which reason these investors can be assigned less new shares than they have subscribed and paid for.

Start of second and third subscription round

In the second and third subscription round there will be 4.015.583 shares available for a total amount of € 28.109.081,00. This amount may increase depending on first round results by the amount of unallotted shares of first round investors due to their non-compliance with the special condition set out in the Prospectus. The two other rounds will begin on Monday, 10 June 2013 at 9:00 hrs. In the second round, which will last until 17 June 2013 (12:00 hrs), shares may be subscribed for by Retail Investors from Slovenia. In the third round, which will last until 21 June 2013 (12:00 hrs), shares may be subscribed for by Large Investors from Slovenia and other EU Member States, Institutional Investors from Slovenia, Croatia, EU and USA, and the Invited Investor EBRD. Shares will be offered in the third round by applying the exemption from the obligation to publish a prospectus.

The Prospectus envisages that 10% of new shares not allotted to first-round investors ("remaining shares") will be offered in the second round. If the demand from Small Investors in the second round exceeds the offer, shares will be allotted to all subscribers in proportion to the amount paid by them.

In the third round, it is envisaged that 90% of the remaining shares will be offered. In the third round, the Management and the Supervisory Board of the Company will allot shares at their discretion, in accordance with the criteria set out in the Prospectus. In accordance with the Prospectus, the percentages of shares intended for the second and third round may be adjusted in view of the demand from various investors within a range of -10 percentage points and +30 percentage points.

This announcement will be available on the website of Sava Reinsurance Company, at least five years from the date of the announcement.