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, which represents an inside information relating to the company:

The new management of Poslovni sistem Mercator, d.d., has been in regular contact with the company’s lenders in connection with avoiding default under the company’s long-term financing arrangements as a potential consequence of events currently affecting its majority shareholder, culminating recently in activation of the so-called Lex Agrokor referenced below. Feedback from lenders has been firming up over the last days. The new management issued a consent request to lenders on Sunday relating to avoidance of a potential cross-default. The new management hereby notifies the public that it has, as at today's date, not received any refusals to such request and has already obtained positive consents from a significant majority of its lenders, such that the necessary two-thirds majority consent has been exceeded.

The specific consent sought related to potential triggering of the cross-default by reference to Agrokor and its "Restricted Subsidiaries" as a result of events which are currently affecting its majority shareholder, the company Agrokor d.d. with its seat in the Republic of Croatia, and its affiliated and subsidiary companies (including, but not limited to, the opening of the extraordinary administration proceedings against Agrokor d.d. in accordance with Croatian Act on Extraordinary Adiministration Proceedings for Companies of Systemic Importance for the Republic of Croatia (Zakon o postupku izvanredne uprave u trgovačkim društvima od sistemskog značaja za Republiku Hrvatsku)) (the so-called "Lex Agrokor").

The management board of Mercator appreciate the swift and decisive action by such a strong majority of its lenders to positively demonstrate their support for the Mercator Group, sending a strong positive message to stakeholders as to the continuing stability of ongoing operations of Mercator Group.

The announcement will be published on the company’s website at www.mercatorgroup.si as of April 13, 2017, and will remain posted for a period of at least five years.