Institut IGH d.d. — Capital/Financing Update 2013

Oct 1, 2013

IGH-R-A Regular Share, ISIN HRIGH0RA0006 Offered at the official market of the Zagreb Stock Exchange Notice issued in accordance with Article 459 of the Capital Market Act

Zagreb, 1 October 2013

10000 Zagreb 10000 Zagreb

HANFA ZAGREBAČKA BURZA

Miramarska 24b Ivana Lučića 2a Odjel uvrštenja

Subject: Change of conditions for the issuance of IGH-0-176A bonds

Further to provisions contained in the Capital Market Act (Official Gazette 88/08, 146/08, 74/09, te 54/13) and according to Zagreb Stock Exchange Rules, we wish to advise you as follows:

On 1 June 2012, the company Institut IGH d.d. advised the investor community that it has published on the company's web pages the Public Invitation for the Inscription of Convertible Bonds, while on 6 June 2012 the company Institut IGH d.d. issued convertible bonds marked IGH-0-176A, ISIN: HRIGHH0O176A8 in the amount of € 10,000,000.00, with the annual interest rate of 9%, and with the due date: 6 June 2017.

Also on 6 June 2012, the Central Depository & Clearing Company LLC included the bonds in the depository services and the netting and settlement services. According to Article 11.1 of the Bond Issuance Agreement, and in order to guarantee payment by the Issuer of all bond-related obligations, the decision was made to establish a lien on real property items (specified in the preamble of the Bond Issuance Agreement), which are owned and are in possession of the Issuer at the moment when Financial Documents are signed.

Furthermore, on 10 June 2013, the FINA's Settlement Council ZG07 made the Decision on the opening of the pre-bankruptcy settlement procedure for the company INSTITUT IGH d.d.

It should be noted that convertible bond holders as secured creditors (based on the agreement on securing the money claim by forming lien over the Company's real estate items) have not renounced their right to separate recovery within the prebankruptcy settlement procedure and, according to Article 56 of the financial Operations and Pre-bankruptcy Settlement Act, they have the right to start and conduct the distraint procedure (via the court or a notary public) for the sale and

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conversion into money of the real estate items even after the pre-bankruptcy settlement procedure has been opened.

In other words, convertible bond holders have the right to start separate distraint procedures for the settlement of their claims through sale of the real estate items specified in the Bond Issuance Agreement.

Nevertheless, the Issuer emphasizes that in case the funds obtained through distraint procedure are not sufficient for the full coverage of Secured Claims, the bond holders will not have the right to the payment of the difference until the total amount of secured claims, and their claim shall be considered settled through realization of the mentioned distraint.

INSTITUT IGH d.d.

Investor Relations Office

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