Echo Investment S.A.

Regulatory Filings • May 21, 2018

Conclusion by Echo Investment of the joint ventureagreement with R4R S.à r.l., a company controlled by a fund managed byone of the world's premier investment managers.

The Management Board of Echo Investment S.A. (the "Company")hereby informs that on 21 May 2018, the Company and R4R S.à r.l. ("R4R"),a company controlled by a fund managed by one of the world's premierinvestment managers, concluded a joint venture agreement ("Agreement")based on which a full-function joint venture ("JVCo") underthe joint control of R4R and the Company will be created. According tothe Agreement, R4R will acquire 70% of the shares and votes in the JVCoand the Company will acquire 30% of the shares and votes in the JVCo.

JVCo will operate as a development platform forresidential real estate for rent in Poland. The JVCo immediately afterthe establishment will develop apartments for rent in four locations inWarsaw, Łódź and Wrocław. After its establishment the platform will takeover four projects being under development and will conduct constructionof more than 1,200 apartments and another 1,700 apartments will be readyfor construction in the next 12 months. The first tenants will be ableto move in during the fourth quarter of 2019. Under the Agreement, theCompany will provide planning, design and developments services, whileJVCo will lead the operational management.

The Agreement is conditional and is subject to adecision of a relevant antimonopoly authority approving theconcentration.