C.N.T.E.E. Transelectrica

Legal Proceedings Report • Mar 29, 2019

To the: Bucharest Stock Exchange – Department of Operations Issuers Regulated Markets

Financial Supervision Authority - General Directorate Supervision - Issuers Division

Date of the communiqué: March 28, 2019 Name of Issuer Company: CNTEE TRANSELECTRICA SA, company managed by two-tier system Headquarters: Blvd. Gheorghe Magheru 33, Bucharest 1 Working location: Str. Olteni 2-4, Bucharest 3 Phone / fax numbers: 021 30 35 611/021 30 35 610 Single registration code: 13328043 LEI Code: 254900OLXCOUQC90M036 Number in the Trade Register: J40/8060/2000 Share capital subscribed and paid: 733.031.420 RON Regulated market where the issued securities are transacted: Bucharest Stock Exchange

Communiqué – subsidiary SMART SA

The Board of administration of Subsidiary Company for Maintenance Services of the Electricity Transmission Grid Smart SA has notified the company's shareholders (CNTEE TRANSELECTRICA SA and the Romanian State, via the Ministry of Economy) the significant deterioration of the company's financial situation these last years because of absent financial resources to pay legal liabilities and due contractual amounts, which has led to accruing total payable liabilities amounting to 4.19 million Lei, and exceed the due term by more than 60 days. Under such circumstances the Board of administration of Smart SA transmitted to shareholders' approval an economic-financial Restructuring Plan for the activities of Smart SA, which includes as central item the need to capitalise Smart in quantum of 24 million Lei.

Considering the role of Smart SA as maintenance subsidiary for the electricity transmission grid and the particular significance of grid maintenance operations for the safe operation of the National Power System, the executive management of CNTEE Transelectrica SA has urgently examined the company's state and decided initiating legal steps as necessary to adopt measures solving the circumstances of Smart, so as not to endanger the continuity of maintenance activities and avoid the insolvency of Smart SA.

Based on art. 121 of the Companies Law no. 31/1990, the shareholders of Smart SA, respectively CNTEE Transelectrica SA and the Romanian State through the Ministry of Economy met on 28 March 2019 at the General Shareholders Meeting, where the Smart SA Economic and Financial Restructuring Program had been unanimously approved.

Marius – Dănuț CARAȘOL Constantin SARAGEA

Executive Director General Directorate Chairman

Directorate Member

LANGUAGE DISCLAIMER: This document represents the English version of the original official Romanian document filed with the Financial Supervisory Authority ASF. The English version has been created for English readers' convenience. Reasonable efforts have been made to provide an accurate translation, however, discrepancies may occur. The Romanian version of this document is the original official document. Any discrepancies or differences created in the translation are not binding. If any questions arise related to the accuracy of the information contained in the English version, please refer to the Romanian version of the document which is the official version.