C.N.T.E.E. Transelectrica

Legal Proceedings Report • May 16, 2019

To the: Bucharest Stock Exchange – Department of Operations Issuers Regulated Markets Financial Supervision Authority - General Directorate Supervision - Issuers Division

Current report according to the provisions of article 82 of Law 24/2017 Date of the report: May 16, 2019 Name of Issuer Company: CNTEE TRANSELECTRICA SA, company managed under Two-tier System Headquarters: Bucharest 1, Blvd. Magheru no. 33 Working location: Bucharest 3, Str. Olteni no. 2-4 Phone / fax numbers: 4021 3035 611 / 4021 3035 610 Single registration code: 13328043 LEI Code: 254900OLXCOUQC90M036 Number in the Commercial Register: J40/8060/2000 Share capital subscribed and paid: 733,031,420 Lei Regulated market where the issued securities are transacted: Bucharest Stock Exchange

Event to report

The National Power Grid Company Transelectrica SA informs the shareholders and investors about its signing a contract amounting to more than 50,000 Euro with subsidiary SMART SA.

Contract: C 10 / 15.05.2019, registered under no. 5049 / 15.05.2019;

Parties: CNTEE Transelectrica SA, Transmission Branch Sibiu, as Purchaser; SC SMART SA, as Provider;

• Contractual object: "Installing the 400 MVA AT2 and associated bays in Iernut substation and upgrading the command-control system of the 400/220/110/6 kV substation Iernut; RET connection of the CCC 430 MW Iernut generation point belonging to SNGN ROMGAZ SA as well as design & execution work for protection systems associated to electric lines connecting the new units of SPEE Iernut";
• Contractual value: 30,740,270.00 Lei, VAT free;
• Guarantees: Performance bond of the contract constituted by the provider amounting to 3,740,270.00 Lei, representing 10% of the VAT free contractual value;
• Penalties: For the failure to achieve the activities, from the Provider's / Subcontractors' / Suppliers' exclusive guilt, in accordance with the deadlines specified in the execution schedule elaborated and updated as per contractual provisions, the Provider owes to the Purchaser 0.1% delay penalties applied to the value of activities from the respective stage, beginning with the first day of delay beginning with the date following the due day of the liability until payment date (inclusive). The amount of penalties will not exceed the cumulated value of activities from the respective stage.

Penalties will be paid based on a Purchaser-issued invoice. The Provider will pay the invoice within maximum 30 days from its receipt.

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.

	For the failure to pay the Provider-issued invoices upon agreed terms in the Contract the Purchaser owes to the Provider, namely to Subcontractors for the part / parts they executed of the sectorial contract, delay penalties in quantum equal to the interest rate owed for the failure to pay in due time the obligations to the state budget applied to the owed amount, for each day of delay, beginning with the date following the due day of the liability until payment date (inclusive).
Mutual receivables:	None.

Terms of payment: Within 30 days from the registration date of the Purchaser's fiscal invoice, provided contractual clauses are observed.

Marius – Dănuț CARAȘOL Constantin SARAGEA

Executive Director General Directorate Chairman

Directorate Member