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:

The company Poslovni sistem Mercator, d.d., encourages its shareholders to actively exercise their rights and for this purpose begins with organized collection of proxy authorizations. This allows shareholders to exercise their voting rights without attending the Shareholders Assembly, thus directly contributing to company’s governance.

Consistent with the recommendations of the Slovenian Corporate Governance Code, Poslovni sistem Mercator, d.d., hereby informs its shareholders that, based on the agreement with VZMD (PanSlovenian Shareholders’ Association) dated July 28, 2014, and based on the agreement with Društvo MDS (Small Shareholders' Association of Slovenia) dated July 18, 2014, the organized collection of shareholder proxy authorizations for the 20th Regular Shareholders Assembly, which is to take place on August 29, 2014, has started. The company Mercator, d.d., Društvo MDS and VZMD have selected following proxies, which are to be authorized by the shareholders for exercising their voting rights: Mejak Miran, Verbič Kristjan, Stanković Rajko and Čadež Simon.

This announcement will be published on the company’s website at www.mercatorgroup.si as of August 13, 2014, and will remain posted for a period of at least five years.