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:

At today's extraordinary session, Mercator Supervisory Board reviewed extensive documentation and found that Mercator operations in the recent period were correct and without any irregularities, and that the business interests of the company Poslovni sistem Mercator, d.d., have not been harmed.

The Supervisory Board unanimously adopted the following resolutions:

1. The report on Mercator's purchasing policy and signing of contracts with third-party service providers with regard to marketing services and investments was presented to the Supervisory Board. Based on relevant information from all reports, especially reports from Deloitte and Ernst&Young the Supervisory Board concluded there are no irregularities in this respect.

2. The Supervisory Board approved the proposal by the President of the Management Board of Poslovni sistem Mercator, d.d., to hire one of the big four leading consultant audit firms or any other renouned international consultant firm, that would additionally establish a system of control of relationships between the companies of the Mercator Group and Agrokor Group, which are not part of the Mercator Group.

3. The Supervisory Board instructs the Management Board to immediately explore all options to carry out compensation of internal receivables and payables between Mercator Group companies and Agrokor Group companies, which are not part of Mercator Group, as soon as possible.

4. The report of the President of the Management Board on completed and current activities of the Management Board to secure all interests of the company and Mercator Group regarding current events in Agrokor Group, was presented to the Supervisory Board.

The announcement will be published on the company’s website at www.mercatorgroup.si as of April 14, 2017, and will remain posted for a period of at least five years.