Institut IGH d.d. — Share Issue/Capital Change 2011

Jul 8, 2011

Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, igh@igh.hr, www.igh.hr

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

Zagreb, 8 July 2011

HANFA Miramarska 24b 10000 Zagreb

ZAGREBAČKA BURZA Ivana Lučića 2a 10000 Zagreb Odjel uvrštenja

Subject: Strategic business decision

Pursuant to the Capital Market Act and Zagreb Stock Exchange rules, the company INSTITUT IGH d.d., with the registered seat in Zagreb, Janka Rakuše 1, PIN: OIB 79766124714, CRN: MBS 080000959, issues herewith the following

PRESS RELEASE

• $\mathbf{I}$ In order to strengthen its international operations through organic growth, acquisitions, and reduction of expenditures, INSTITUT IGH, d.d. has initiated, together with its lead financial advisor, Nova Capital Partners LLC, a New York based emerging markets specialist investment banking firm, and legal advisor, Weil, Gotshal & Manges LLP, one of the world's leading international law firms, a process of investigating possibilities for a potential increase in its share capital through a new issue of shares.
• Accordingly, INSTITUT IGH, d.d. announces that it has initiated discussions ₩ with financial institutions and potential strategic partners about possibilities for a potential increase in its share capital through a new issue of shares, but it can in no way give any assurances that such discussions will actually result in an increase in the company's share capital. In addition, at this stage in the process, INSTITUT IGH, d.d. cannot provide any assurances as to the price at which new shares would be issued, nor about the number, kind, type and rights attributed to such shares, or about whether an increase in share capital will include the right of preference for the subscription of new shares, or the total or partial exclusion of the right of preference, all as related to and in accordance with Article 308 of the Companies Act.

Djelotnost: 73102 AR-3758272 Poslovna banke Zagrebačka banka d.d. Zagreb, Paramlinska 2 2io-račun:
2360000-1101243767 devizni ročun kad Zogrebačke banke d.d. Zagreb: 2100085026 018:79766124714

Isaavački sud u Zaarebu. registarski uložak s matičnim brojem (MBS) 080000959

Mierodavní sud.

Temelini kapital: 63 432 000.00 kg uplaćen u cijelosti Broj izdanih dionica: 158.580, nominalna vrijednost dionice 400 km

prof. dr.sc. Jure Rodić, direktor. zastupa društvo pojedinačno i samostaino Nadzorni adbor. dr.sc. Franjo Gegurić, predsjednik

SPLIT 21 000 Matice hrvatske 15 Tel:021/558-666 Fax:021/465-335

RIJEKA 51 000 Slavka Tomašića 5 Tel:051/206-100 Fax:051/206-106

OSUEK 31 000 Drinska 18 Tel:031/253-101 Fax:031/253-104

VARAŽDIN 42 000 Hallerova aleja 7 Tel:042/210-970, 042/210-722 Fax:042/211-285

DUBROVNIK 20 000 Vukovarska 8 Tel:020/412-489, 020/411-628 Fax:020/412-489

PULA 52 100 Rizzijeva 40 Tel:052/508-220 Fax:052/508-221

KARLOVAC 47 000 Primorska 16 Tel:047/416-987, 047/416-988 Fax:047/416-989

SISAK 44 000 Ferde Hefelea b.b. Tel:044/571-255 Fax:044/571-256

ZADAR 23 000 Dobriše Cesarića 1 Tel:023/220-910. 023/323-299 Fax:023/323-225

Institut IGH d.d.

Ш

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401. igh@igh.hr, www.igh.hr

• INSTITUT IGH, d.d. will inform its shareholders and the investment community about the progress of the proposed transaction and will release appropriate information, all in accordance with provisions of the Capital Market Act, and in keeping with the Zagreb Stock Exchange rules RUEKA 51 000 and other relevant regulations and subordinate acts.
• $\mathsf{IV}$ By means of the above mentioned new financing, INSTITUT IGH, d.d. expects to additionally strengthen its financial standing and market position, keep for the long-term its leading position in the company's core business in the Republic of Croatia, and establish itself more rapidly on international markets, for which IGH has all the prerequisites in terms of project references, industry expertise and an unrivalled regional knowledgebase in the field of civil engineering.
• $\vee$ INSTITUT IGH d.d. is continuing its three-year optimization of its businesses, with an aim to increase productivity and acquire greater market share both in the Republic of Croatia and on other similar growth markets. Despite the difficult macroeconomic situation, and the effects of recession in the construction sector in the Republic of Croatia, INSTITUT IGH, d.d. has succeeded in maintaining a profitable business model, and is building the foundation for acquiring greater market share at home and abroad with a goal of delivering value to its existing and future shareholders.
• $VI$ INSTITUT IGH, d.d. ("IGH") is the leading construction design, engineering and consulting company in Central and South-Eastern Europe. INSTITUT IGH, d.d. core business focuses on design and technical supervision for large-scale infrastructure and building projects that require the most exacting global standards. IGH is viewed as a centre of excellence for engineering laboratory certifications and research and an innovator in the field infrastructure development.

SPLIT 21 000 Matice hrvatske 15 Tel:021/558-666 Fax:021/465-335

Slavka Tomašića 5 Tel:051/206-100 Fax:051/206-106

OSIJEK 31 000 Drinska 18 Tel:031/253-101 Fax:031/253-104

VARAŽDIN 42 000 Hallerova aleja 7 Tel:042/210-970. 042/210-722 Fax: 042/211-285

DUBROVNIK 20 000 Vukovarska 8 Tel:020/412-489, 020/411-628 Fax: 020/412-489

PULA 52 100 Rizzijeva 40 Tel:052/508-220 Fax:052/508-221

KARLOVAC 47 000 Primorska 16 Tel:047/416-987, 047/416-988 Fax:047/416-989

SISAK 44 000 Ferde Hefelea b.b. Tel:044/571-255 Fax: 044/571-256

ZADAR 23 000 Dobriše Cesarića 1 Tel:023/220-910, 023/323-299 Fax:023/323-225

INSTITUT IGH, d.d. Investor Relations Office

Belatard: 73102 MB: 3750272 Paslowna banka .
Zagrebočke banka d.d Zagreb, Paramánska 2 Sto-ročun 2360000-1101243767 devizni ročun kod Zngrebočke bonke d.d. Zagreb: 2100085026 018.79766124714

Mierodmini sud Trgovački sud u Zagrebu, registarski ulažak s matičnim brojem (MBS) 060000959

Jemaini kontrol 63 432 000,00 km uplaćen u cijelosti Broj izdanih dionica: 158.580, nominalna vrijednost dionice 400 kn

prof. dr.sc. Jure Rodić, direktor, zastupa društvo pojedinačno i samostaino Nadzorni adbor. dr.sc. Franjo Gegurić, predsjednik