PG Plc

Share Issue/Capital Change • May 4, 2017

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by PG p.l.c. " or the "Company") pursuant to Chapter 5 of the Malta Financial Services Authority Listing Rules.

Date of Announcement Reference

26th May 2017 001/2017

Announcement on allocation policy in respect of the offer of 27,000,000 Ordinary Shares

in PG p.l.c. with a nominal value of €0.25 each

QUOTE

The Company is pleased to announce the method of application of the allocation policy referred to in the Prospectus dated 27 March 2017 (the "Prospectus"), in respect of applications received further to the offer for sale by Mr. Paul Gauci of 27,000,000 PG p.l.c. ordinary shares of a nominal value of €0.25 per share (the "Shares"), at the price of €1.00 per share.

As explained in section 5.2 of the Prospectus, an aggregate amount of 20,000,000 Shares was preallocated to three financial intermediaries, namely Bank of Valletta plc, Jesmond Mizzi Financial Advisors Limited, and Rizzo, Farrugia & Co. (Stockbrokers) Limited.

A further tranche of 1,000,000 shares was reserved for the employees of PG plc and its subsidiary companies. 74 applications for a total of 1,180,000 shares were received from such employees. The Company shall be satisfying all applications received from employees as follows:

• i.
• with respect to applications above 10,000 Shares, the Company will be allocating the first ii. 10,000 Shares in full and a further 76.92% of the remaining balance of all such applications.

PG GROUP, HEAD OFFICE, PAMA SHOPPING VILLAGE, VALLETTA ROAD, MOSTA, MST 9017, MALTA

T. (+356) 2349 6100 F. (+356) 2142 1336 E. info@pggroup.com.mt

Company Reg. C78333

A member of PG Group

ZARA

A final tranche of 6,000,000 Shares was the subject of an Intermediaries' Offer through selected financial intermediaries consisting of the three intermediaries listed above together with Calamatta Cuschieri Investment Services Limited and Charts Investment Management Service Limited. Applications for a total of 90,792,855 Shares were received by the Company in the Intermediary's offer. In terms of the Prospectus, in the case of over subscription, applications made through subscription agreements are due to be scaled down on a pro-rata basis. Accordingly, applications made through the financial intermediaries participating in the Intermediaries' Offer shall be allocated 6.61% of the number of Shares applied for.

In total, applications for 111,973,655 shares were received for the 27,000,000 Shares on offer. As a result, 881 shareholders will be added to the register of the Company held with the Central Securities Depository of the Malta Stock Exchange.

The Board of Directors of the Company would like to thank the financial intermediaries, the investing public and the Group's employees for the remarkable support shown towards this sale of shares and for the confidence expressed in the PG Group.

The shares will be admitted to listing on the Official List of the Malta Stock Exchange on 3rd May 2017 and trading will commence on Thursday 4th May 2017.

UNQUOTE

Signed:

Dr Fransina Abela Company Secretary

PG GROUP, HEAD OFFICE, PAMA SHOPPING VILLAGE, VALLETTA ROAD, MOSTA, MST 9017, MALTA

T. (+356) 2349 6100 F. (+356) 2142 1336 E. info@pggroup.com.mt

Company Reg. C78333

A member of PG Group

ZARA

OMF