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 makes the following announcement:

Companies of Mercator Group and VTB Bank (Europe) SE have signed contract documentation for refinancing of the Mercator Group's super-senior facility. By signing the contract documentation, VTB has expressed its solid support and confidence in the success of the Mercator Group's operations.

The new super-senior facility, amounting to EUR 80 million and at considerably better terms, is an important part of the pursuit of Mercator's long-term strategy. Following the completion of a very successful first stage of Mercator Group's comprehensive restructuring in 2016 and 2017, which included stabilization of operations, a Value Creation Plan, a new marketing strategy, and re-entry to the market of Bosnia and Herzegovina, Mercator is today successfully executing the second stage of its strategy. This includes in particular the establishment of a Value Creation Plan in all markets of Mercator's operations, focus on the customers, and particularly the extensive monetization of property, which has contributed to intensified and early deleveraging. The third stage of Mercator's long-term strategy will, in addition to investing into a new logistics centre, facilitate Mercator's new development cycle that is of vital importance for even more successful performance and long-term development of the suppliers in Slovenia and the broader region. As the region's largest retailer, Mercator is the backbone of food growing and processing in Slovenia and the region.

As of May 30, 2019, this announcement will also be published on the company website at www.mercatorgroup.si where it shall remain available for a period of no less than 5 years.