MERCATOR, d.d., Ljubljana

Mercator and Krajina sign an agreement on the purchase of retail space for a TC in Banja Luka

Ljubljana, August 27th 2008 - Mr. Žiga Debeljak, Management Board President of the company Poslovni sistem Mercator, d.d., and Mr. Borko Džurič, CEO of the construction company Krajina, a.d., signed today in Banja Luka an agreement on the purchase of retail space for a Mercator trade center in Banja Luka, which is to be located within the Aleja Centar complex.

"The acquisition of retail space for the new trade center is a major acquisition for Mercator; it is consistent with our strategy of internationalization and the vision of becoming the leading FMCG retailer in the entire Southeastern European region. It is Mercator's goal to remain highly committed to the development of trade centers and other retail units and to break among the leading retailers in this area as well," commented Mr. Žiga Debeljak after signing the contract.
Total area of the prospective trade center will amount to over 13,000 square meters, of which 4,000 square meters will be allocated for a Mercator Hypermarket. The center will also comprise a Modiana, Intersport, Beautique, and 40 other outlets offering textile, footwear, food, products for children, and books.
"Construction of this trade center is a major challenge for the construction company Krajina, as well as an important work of reference for the future; the trade center will take up most of the residential-commercial complex Aleja Centar, of which it is a part", said the CEO, Mr. Borko Džurič.
Also present at the signing of the agreement was Mr. Milorad Dodik, prime minister of Republika Srbska. Trade center will presumably open in March next year; the investment amounts to approximately EUR 42 million; over 300 people will be employed in the center, of which over 160 will work in Mercator retail units. In compliance with Mercator's marketing strategy, over a third of the products in the aisles will be produced locally.

The announcement will be also published on the company web-site at www.mercator.si, as of August 27th 2008 for a minimum period of five years

Date: 27. 8. 2008