ĐURO ĐAKOVIĆ Grupa d.d.

M&A Activity • Apr 14, 2016

Dr. Mile Budaka 1, 35000 Slavonski Brod, Croatia Tel: +385 35 446 256: +385 35 447 139 Fax: +385 35 444 108 e-mail: uprava@duro-dakovic.com Web: www.duro-dakovic.com

CROATIAN FINANCIAL SERVICES SUPERVISORY AGENCY 10000 Zagreb Miramarska 24

ZAGREB STOCK EXCHANGE d.d. 10000 Zagreb Ivana Lučića 2a

Slavonski Brod, 14th April 2016 Our reference no.: 54/2016

Subject: Contract conclusion notice

Pursuant to Article 459, Paragraph 1 of Capital Market Act (Official Gazette No. NN 88/08, 146/08, 74/09, 54/13, 159/13, 18/15 i 110/15) and Article 2 of Ordinance on Disclosure of Inside Information Concerning Directly the Issuer and on Determining Issuer's Legitimate Interest in Delay of Disclosure (Official Gazette No. 5/09 and 85/13), we hereby issue the following notice:

Đuro Đaković Specijalna vozila d.d., a company within Đuro Đaković Group and Patria Land Systems member of Patria Group have signed a contract on production and delivery of armoured wheeled vehicles PATRIA AMV 8X8 for third markets. The total value of the contract is 26 million Euros.

Patria and Đuro Đaković have so far successfully cooperated on production and delivery of armoured wheeled vehicles for the Ministry of Defence of the Republic of Croatia. In this cooperation Đuro Đaković Specijalna vozila manufactured combat vehicles for Croatian Army while Patria supplied all the required technology. This deal for Croatian Army has created us an opportunity to enter third markets and was followed by signing Frame Agreement on cooperation on third markets between these two companies for the sales of combat armoured vehicles.

"This is the first export project in defence industry for Đuro Đaković after almost 30 years when Đuro Đaković had manufactured and exported M-84 battle tanks for Kuwait. This deal is a key proof of the successful cooperation and vision shared between Đuro Đaković and Patria and I believe it is only the beginning of similar future projects", said Tomislav Mazal, President of the Management Board at Đuro Đaković Holding d.d.

"Patria has been satisfied with the cooperation with Đuro Đaković and this contract shows strong commitment to continue our long time partnership between Patria and Đuro Đaković also in the future", said Mika Kari, President of Patria Land.

Best regards,

President of the Management Board

Tomislav Mazal

»DURO DAKOVIĆ« HOLDING d.d. SLAV. BROD, Dr. M. Budaka 1