Institut IGH d.d. — Share Issue/Capital Change 2014

Apr 1, 2014

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, 19 March 2014

10000 Zagreb 10000 Zagreb

HANFA ZAGREB STOCK EXCHANGE

Miramarska 24b Ivana Lučića 2a Odjel uvrštenja

The company INSTITUT IGH d.d., holder of the personal identification No. OIB 79766124714 (hereinafter referred to as: the Company), issued on 5 March 2014 its "Invitation for the expression of interest to participate in the increase of the Company's share capital", which follows after the end of the restructuring procedure as called for in the Pre-Bankruptcy Settlement No. 72 Stpn-305/13 reached on 5 December 2013. In accordance with the said invitation, and based on the expression of interest to participate in the increase of the Company's share capital, the Company's intention was to initiate the procedure aimed at increasing the share capital through payments in cash, the objective being to strengthen the capital base of the Company, to fulfil all obligations assumed in accordance with the said pre-bankruptcy settlement arrangement, and to create preconditions for the development and expansion of the Company's core business, and this based on knowledge and continuous investment in research and development.

After issuance of the above-mentioned "Invitation for the expression of interest to participate in the increase of the Company's share capital", the Company received the expression of interest for the inscription of 305,000 company shares at the price of HRK 190.00 per share, through payment in money. Consequently, the Company received the expression of interest for the increase of its share capital in the amount of HRK 57,950,000.00 (in words: fifty-seven million nine hundred and fifty thousand Croatian kunas).

The said interest was expressed by Mr. Sergej Gljadelkin, holder of the personal identification No. OIB 53315489840. Mr. Gljadelking advised the Company through his written Expression of Interest that during his twenty years of working experience he has continuously been involved in the establishment, investment

in, and management of companies from construction sector. At the time of submittal of his Expression of Interest Mr. Gljadelkin is the owner of a group of companies with over 20 members. The mother holding company Avenue Holdings GmbH, Republic of Austria, in which Mr. Gljadelkin is the majority owner, realizes the annual consolidated revenues of some US\$ 500 million, according to Mr. Gljadelkin. In addition, Mr. Gljadelkin has advised the Company that he intends to make the said investment through his own funding.

Following the Company's Invitation for the expression of interest to participate in the increase of the Company's share capital, and after the above mentioned expression of interest, the Management Board and the Supervisory Board of the Company have decided to convene the Company's General Assembly meeting during which the decision will be made about the said increase in share capital.

In this respect, the Company wishes to emphasize that the increase in share capital of HRK 57,950,000.00 would mark the end of the restructuring procedure, a full financial consolidation, and a stronger cash flow standing, which is all a precondition for the final fulfilment of the Company's vision as a company of knowledge focused on its core activity.

INSTITUT IGH, d.d.

Investor Relations Office