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

The Management Board of Mercator, consisting of 5 members: Žiga Debeljak, Vera Aljančič Falež, Melita Kolbezen, Stanka Čurović and Peter Zavrl, has submitted its statement of resignation to the President of the Supervisory Board yesterday in the evening. According to the stipulations of their employment contracts, their resignation will come into force after 6 months from the day after the submission of their resignation, which means on 30 September 2012.

The Management Board has also informed the Supervisory Board, that it is willing to mutually discuss the possibility to shorten the resignation period, should the company have such interest. The Management Board believes, that within current demanding economic situation it is in the interest of the Mercator Group to appoint a new management board as soon as possible, taking into account that the current Management Board decided to resign.

The Management Board took its decision to resign after more than 6-years of work in their positions after thorough deliberation. Certain happenings in the past and current year have due to different views on certain elements of the sale of the company to its biggest competitor resulted in mutually diminished level of trust between the Management Board and certain important shareholders. Current events regarding the general shareholders’ assembly have disclosed this disagreement also to broader business community. Therefore it is the assessment of the Management Board, that its ability to efficiently conduct normal business and regulate relationship with business partners and other stakeholders has been impaired, irrespective of the outcome of the shareholder’s assembly. Hence The Management Board believes that this situation presents a risk for the Mercator Group in current demanding economic environment. As a result, the Management Board believes that it was a responsible decision to resign, in order to facilitate the mitigation of this risk, which is in the best interest of the Mercator Group.

The Management Board has intentionally decided to submit its statement of resignation prior to the general shareholders’ assembly meeting scheduled for 30 March, 2012, because its decision is independent of the outcome of the voting on the shareholders’ assembly meeting.

Until the end of its mandate the Management Board will continue its endeavours to fulfil the approved business plan for the year 2012 and to ensure the stability of the operations of the Mercator Group. In addition, the Management Board will fully support an efficient transfer of management to the new Management Board, which will be appointed by the Supervisory Board.

The stability of the Mercator Group as the biggest employer in Slovenia and one of the biggest business groups in the region is not only in the interest of shareholders, but also in the interest of all its employees and business partners, which co-operate with the group.

This announcement will be published on the company’s website at www.mercator.si as of 30 March 2012, and will remain posted for a period of at least five years.