Kruk S.A. — M&A Activity 2016

Jun 28, 2016

Current Report No. 69/2016

Date: June 28th 2016

Subject: Information on the aggregate value of agreements executedbetween the KRUK Group and CEC Bank S.A.

Legal basis: Art. 56.1.2 of the Public Offering Act - Current andperiodic information

Text of the report:

The Management Board of KRUK S.A. (the "Company") announces that on June28th 2016 its subsidiary KRUK Romania S.r.l. ("KRUK Romania") concludeda debt purchase agreement (the "Agreement") with CEC Bank S.A. (the"Bank"), as a result of which the total value of agreements executedbetween the KRUK Group and the Bank over the past 12 months reached PLN72.6m, VAT exclusive, and thus exceeded 10% of the Group's revenue forthe last four financial quarters.

The Agreement was the highest-value agreement executed in the period.Under it, KRUK Romania purchased from the Bank a portfolio of securedand unsecured debts with an aggregate nominal value of RON 313.3m (PLN306.5m, as translated at the mid rate quoted by the National Bank ofPoland for June 28th 2016) for a price of RON 59.5m (PLN 58.2m, astranslated at the mid rate quoted by the National Bank of Poland forJune 28th 2016) (the "Price").

The Agreement does not provide for any conditions precedent, conditionssubsequent or contractual penalties that would exceed the equivalent of10% or more of the value of the Agreement or the PLN equivalent of atleast EUR 200,000.

The other terms and conditions of the Agreement do not differ from thosecommonly used in agreements of such type.

The materiality criterion is met because the total value of theagreements exceeds 10% of the KRUK Group's revenue for the previous fourfinancial quarters.

Detailed legal basis: Par. 5.1.3 of the Regulation of the Minister ofFinance of February 19th 2009 on current and periodic information[...]