Valamar Riviera d.d.

Legal Proceedings Report • May 13, 2016

HANFA- Croatian Agency for Supervision of Financial Services Miramarska cesta 24 b 10000 ZAGREB

Zagreb stock exchange d.d. Ivana Lučića 2a 10000 ZAGREB

HINA – Croatian News Agency ots@hina.hr

Poreč, 13th of May 2016

Reg. no.:1-55/16

Subject: Notification on submitting to the court register the Merger agreement and notification to the shareholders in accordance with articles 517. paragraph 2 and 531 paragraph 1 of Companies Act

We notify that Merger agreement between Valamar Riviera d.d. seated in Poreč, Stancija Kaligari 1, entered into the court registry of the Commercial Court of Pazin under the number (MBS) 040020883, OIB: 36201212847 as take - over company (further: Take - over company) and the company BASTION UPRAVLJANJE d.o.o. seated in Zagreb, Miramarska cesta 24, entered into the court registry of the Commercial Court of Zagreb under the number (MBS) 080504230, OIB: 81108516717 (hereinafter: Merged company), is concluded on 11th of May 2016. and verified by Public notary Vladimir Marčinko from Zagreb, Palmotićeva 43a, under the number: OV-3205/16 (further in text: Merger agreement) and that Merger agreement is submited to court registry of the Commercial Court in Pazin on 13th of May 2016.

We inform shareholders that the Merger Agreement and all documentation related to the subject merger prescribed by provisions of Article 517. Paragraph 2 of the Companies Act is available from 14th of May 2016 on the web site of Take - over company www.valamar-riviera.com free of charge.

The Take - over company is the only shareholder of the Merged company and in accordance with the provisions of Article 531, Paragraph 1 of the Companies Act the General assembly of the Take - over company is not convened because of merger.

The shareholders of the Take - over company whose shares together reach at least the twentieth part of the share capital of the Take-over company are entitled to submit to the Management Board of the Take-over company request to convene the General Assembly for approval of the Merger Agreement, within one month from the date of publication of this notice and documentation in accordance with Article 517. Paragraph 2 of the Companies Act, but latest till 15 th of June 2016.

Valamar Riviera d.d.