Valamar Riviera d.d.

Legal Proceedings Report • Jun 5, 2017

HANFA- Croatian Financial Services Supervisory Agency 24b Miramarska Street 10000 ZAGREB

HANFA – Official Registry of Regulated Information

Zagreb Stock Exchange 2a Ivana Lučića 10000 ZAGREB

HINA – Croatian News Agency ots@hina.hr

Poreč, 5/6/2017 File no: 17-49/17

Subject: Notification of legal transaction

Pursuant to Article 459 of the Capital Market Act and Article 2 of the Ordinance on disclosure of privileged information that are directly related to the issuer and determine the issuer's justified interests in terms of nondisclosure, Valamar Riviera d.d. with registered office in Poreč, 1 Stancija Kaligari, personal identification number (OIB) 36201212847 (hereinafter: the Company or Valamar) hereby notifies that the Company concluded a contract with Kinderhotels Europa Management-Marketing-Verwaltungs-und Verlags GesmbH regarding the purchase of the right to use the Kinderhotels brand for a period of 5 years and 5 months. With this, Valamar has become part of the Kinderhotel chain, specialized in family vacations.

Kinderhotels Europa is a marketing association that brings together high-quality premium family hotels under the Austrian "Kinderhotels" brand.

The collaboration between Valamar and Kinderhotels Europa will enable the hotel branding of Valamar Girandella Maro Resort in Rabac, planned to be opened in season 2018. There are 50 such hotels in Europe, with this one being the third in Croatia

Management Board of Valamar Riviera d.d.