Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d, and the relevant legislation, the company Poslovni sistem Mercator, d.d., Ljubljana, hereby announces the following:

The extraordinary management board of Agrokor presented and released on their website a business sustainability plan for Agrokor Group, or its five key segments of business operations, where retail segment includes Mercator Group.

The business sustainability plan, or plan for sustainable future development, was compiled in cooperation with Mercator's Management Board and expert departments, and it is based on strategic policies of Mercator Group's development until the year 2021, as defined by the Mercator Management Board. One of the key assumptions of Mercator's successful development is deleveraging that will afford Mercator the necessary investment push. It is evident from the information presented at the Group level (Mercator Group plans to generate EUR 2,473 mn of revenues and EUR 123 mn of EBITDA) that Mercator is a key retailer in the region and therefore very important part of Agrokor retail segment. Mercator's successful operations and performance are a foundation for further development, employee satisfaction and cooperation with suppliers.

This announcement shall also be published as of November 2, 2017, on the company website at www.mercatorgroup.si, for a period of no less than five years.