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 informs the shareholders and the public of the following:

Today Mercator signed an agreement on sale of Mercator Centre Belgrade and an agreement on long-term lease of the centre's retail part with the Belgrade-based company Retail Center. The contract price amounts to EUR 46 million (excluding VAT). Mercator Centre Belgrade spans a gross area of 50,239 m2 (including the garage). Simultaneously with the sale, Mercator leased the retail part of the centre with an area of 9,441 m2.

By selling the Mercator Centre in Belgrade, Mercator successfully launched its real estate monetization project whose main goal is deleveraging of the Mercator Group.

This announcement will be published on the company’s website at www.mercatorgroup.si as of December 22, 2017, and will remain posted for a period of at least five years.