Fabrity Holding S.A

Capital/Financing Update • Mar 13, 2019

Aforti Finance S.A. - the subsidiary, is beginnignegotiation of basic transaction conditions in order to obtain externalfinancing

The Management Board of Aforti Holding S.A. with itsregistered office in Warsaw (hereinafter: "Company", "Issuer"), inreference to the current report of ESPI No. 32/2018 dated 18/09/2018regarding the signing by the Issuer's subsidiary company: Aforti FinanceS.A. with its registered office in Warsaw (hereinafter: "AfortiFinance", "Subsidiary") of the special-purpose agreement, herebypublishes that on March 12, 2019 it received information that theSubsidiary received a letter of intent and a term sheet, concerning theacquisition of external financing by Aforti Finance.Inaccordance with the offer submitted to the Subsidiary by a foreigninstitutional investor, the level of the proposed amount of maximumcommitment to finance the Aforti Finance loan campaign was set at EUR 25million.An investor who submitted theterm sheet - the document containing the proposed preliminary terms ofthe transaction, is a British investment fund (hereinafter: "the Fund")based in London, operating on the European financial market since 2004.The Fund managed an asset portfolio valued at USD 4.3 billion on31/12/2018.Both parties are goinng toimmediately negotiate to establish detailed conditions for obtainingfinancing. A part of the negotation process will be also a due diligencesearch, which the Fund will conduct toward Aforti Finance.Accordingto the knowledge of the Issuer's Management Board, the negotiationprocess may take up to several weeks. The Company will inform about anysignificant changes in this with an appropriate current announcement.Inthe opinion of the Issuer's Management Board, the acquisition of aforeign investor will allow to strengthen the position of the AFORTIbrand on the Central and Eastern European markets where selectedcompanies from the Issuer's Capital Group are present.Inaddition, the acquired funds will be used for the further development ofthe loan action run by the Subsidiary. This will allow for the dynamicgrowth of Aforti Finance, which in the opinion of the Management Boardof the Subsidiary should influence on a gradual increase in its marketshare and thus affect the financial results posted by it.Legalbasis: Article 17 paragraph 1 of the MAR - confidential information