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:

Upon proposal by the Management Board, the Supervisory Board of the company Poslovni sistem Mercator, d.d., unanimously approved at their correspondence session the contractual solutions for termination of lease agreements for 83 commercial premises in Bosnia and Herzegovina, signed between the company Mercator - BH, d.o.o., Sarajevo, and the company Konzum, d.o.o., Sarajevo; for settlement of outstanding amounts of rent with equipment in these stores to the benefit of Mercator - BH, d.o.o., Sarajevo; and for agreement on purchase of trade goods by Mercator - BH, d.o.o., Sarajevo. Thus, the companies Mercator - BH, d.o.o., Sarajevo, and Konzum d.o.o., Sarajevo, formalized the procedure of collection of outstanding rent payments, and establishment of Mercator operations in Bosnia and Herzegovina.

As of October 10, 2017, this announcement will also be posted on the company website at www.mercatorgroup.si where it shall remain available for a period of no less than 5 years.