Echo Investment S.A.

Management Reports • Mar 18, 2020

Impact of the coronavirus SARS-CoV-2 and COVID-19outbreak on the operations and financial results of the Company

In relation to the recommendations of the EuropeanSecurities and Markets Authority and Polish Financial SupervisionAuthority dated 12 March 2020, the Management Board of Echo InvestmentS.A. with its registered office in Kielce (the "Company")hereby announces the information on the potential impact of thecoronavirus SARS-CoV-2 and COVID-19 outbreak on the operations andfinancial results of the Company.

Based on preliminary analysis, the Management Boardof the Company announces that, according toitscurrent knowledge and assessment, the coronavirus SARS-CoV-2 andCOVID-19 outbreak and subsequent Government imposed limitations relatedto them may, depending on their duration and intensity, significantlyand adversely affect the operations and financial results of theCompany, in particular:

a)income generated by shopping centers(as the Company indirectly owns the following retail objects: "Libero"in Katowice and 30% of "Galeria Młociny" in Warsaw) due to thelimitations imposed on shopping centers' functioning, including cinemasand gastronomic establishments;

b)residential apartments' sales volume,in particular in the event of potential tightening of the mortgage loaneligibility criteria by banks or other disruptions on the housing orbanking market;

c)timely execution of projects andtransactions undertaken by the Company or its related entities within aplanned schedule, in particular due to possible delays in constructionworks, caused by potential shortages of the construction personneland/or interruptions in supplies of material and components;

d)timing of the sale of commercialprojects and their prices that may be achieved; and

e)availability and terms of new financingif banks and other lenders are materially affected by the extendedeconomic downturn.

The Management Board of the Company is implementingcertain actions aimed at mitigating to the extent possible the adverseimpact of the factors mentioned above, which, in particular, may bepartially offset in the future by the potential decrease in costs ofconstruction works resulting from the reduced demand.

The Management Board of the Company ensures that itis monitoring the development of the coronavirus SARS-CoV-2 and COVID-19outbreak and its impact the Company's operations on an ongoing basis.

This report was issued pursuant to Article 17,section 1 of the MAR - confidential information.