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 company Poslovni sistem Mercator, d.d., today on March 5, 2018, published Report on all transactions effected with the majority shareholder the company Agrokor, d.d., and the companies affiliated to it for the period from November 1, 2017, to January 31, 2018, on company’s website: https://www.mercatorgroup.si/assets/Uploads/Report-on-all-transactions-effected-with-Agrokor-d.d.-and-the-companie....pdf

The report of extraordinary member of Management Board is prepared in accordance with the Act on Conditions for Appointment of Extraordinary Management Board Member in Companies of Systemic Importance to the Republic of Slovenia.

The report concludes that in the reporting period from November 1, 2017, to January 31, 2018, the company Poslovni sistem Mercator, d.d., continued to do business with the company Agrokor, d.d.,and the companies affiliated to it in a way that clearly follows the provisions of the Act on Conditions for Appointment of Extraordinary Management Board Member in Companies of Systemic Importance to the Republic of Slovenia.

In the period to which the report pertains, Mercator also complied with the commitments already laid down in the Agreement on Mercator's Financial Restructuring and the Agreement on Sale and Purchase of Shares of the company Poslovni sistem Mercator, d.d.

With regard to the reporting period it should be noted that the commercial court in Zagreb on January 15, 2018, issued, a decision by which it recognized all Mercator's reported trade receivables as at April 9, 2017.

The report of extraordinary member of Management Board will be by the Act on Conditions for Appointment of Extraordinary Management Board Member in Companies of Systemic Importance to the Republic of Slovenia as of March 5, 2018, announced on the company website at www.mercatorgroup.si where it shall remain available for a period of no less than 5 years.