Agros Development Company "Proodos" Public LTD

Board/Management Information • Apr 6, 2017

AGROS DEVELOPMENT "PROODOS" PUBLIC COMPANY LIMITED

To Cyprus Stock Exchange Nicosia

ANNOUNCEMENT

Agros Development "Proodos" Public Co Ltd owner of Rodon Hotel in Agros announces that the reasons of the decision and announcement to terminate the operations of the hotel as of the 15 September 2016 are all mentioned in the announcement of the company dated 25 April 2016 which has been sent to you.

Immediately after the termination of the operations of the hotel the Board of Directors has taken all necessary actions in order to examine whether it is possible for the hotel to operate again as a viable hotel establishment. The board is taking all the necessary steps and actions in order to achieve its objective.

• 1. We are making every effort to extent the tourist season in order to make the hotel viable and competitive. Towards this we had meetings with both Tour Operators and other organizations specializing in Medical tourism in order to examine the possibility of attracting tourism throughout the year.
• 1. We are in advanced talks with money lending institutions in order to find funds with lower interest rates and more favorable repayment terms so that the company can meet its financial obligations. This funding will aim at the total renovation and upgrading of the hotel and its services.
• 1. We are expecting the announcement of the C.T.O. plan for grants to tourist establishments in order to be able to decide on the size of the loan and the extend of the renovation. This grant will play a very important part in all our future decisions.

Within the frame of the above actions we have prepared the plans and called for tender for all construction, electrical and mechanical works which are now being evaluated by our expert consultants.

It is very important to mention that the Board of Directors will only examine whether and how the hotel will operate only when all the above three conditions are met as described in our announcement.

By order of the Board of Directors

Nicosia, 6 April 2017

Notice: Cyprus Securities & Exchange Commission