Valamar Riviera d.d.

Related Party Transaction • Nov 23, 2021

LEI: 529900DUWS1DGNEK4C68 Member State: Republic of Croatia ISIN: HRRIVPRA000 Security: RIVP (RIVP-R-A) Bloomberg: RIVP CZ; Reuters: RIVP.ZA Listing: Prime Market of Zagreb Stock Exchange

HANFA- Croatian Financial Services Supervisory Agency Franje Račkog 6 10 000 ZAGREB

HANFA – Official Registry of Regulated Information

Zagreb Stock Exchange Ivana Lučića 2a 10 000 ZAGREB

HINA – Croatian News Agency ots@hina.hr

Poreč, 23/11/2021 File no: 1-85/21

Subject: Notice of business relationship with a related party and expansion of business in Austria (inside information)

Valamar Riviera d.d. with its registered office in Poreč, Stancija Kaligari 1, OIB 36201212847 (hereinafter: the Company or Valamar), informs that the Supervisory Board of the Company, without the participation of the Chairman Mr. Gustav Wurmböck, has given prior consent on November 23, 2021 in accordance with the provisions of Articles 263 and 270 Of the Companies Act to the transactions in the subsidiary Valamar A GmbH with its registered office at Forstamtsgasse 6, 5580 Tamsweg, Austria (hereinafter: Valamar A) which will increase its share capital and its reserves via payment from the investor - a new member of Wurmböck Beteiligungs GmbH based in Plösslgasse 8, 1040 Vienna, Austria (hereinafter: WB), whose sole member is Mr. Gustav Wurmböck, Chairman of the Supervisory Board of the Company, with a total capital increase in the amount of EUR 11,070,000.00. Following the recapitalization, Valamar will have a business share of 24.54% and WB will have a share of 75.46% in the share capital of Valamar A. Consequently, a new partnership agreement will be concluded between the members of Valamar A which will regulate mutual relations and changes in accordance with the relevant Austrian regulations. The purpose of the transaction is the acquisition of ContiEstates AG, a joint stock company (Aktiengesellschaft) based in Grub (AR), Switzerland by Valamar A and its related-party Eff neunzigsieben Beteiligungsverwaltung GmbH based at Porzellangasse 51, 1090 Vienna. ContiEstates AG owns the Marietta Hotel in Obertauern, which should thus become the second hotel in Austria managed by Valamar. In the coming two years, Valamar plans further investments in Austria which will include investments in repositioning and upgrading the quality of services in Marietta Hotel and Valamar Obertauern Hotel.

Hotel Marietta 4 * has 120 keys and is one of the largest and most successful hotels in the Obertauern ski resort. It offers guests a great location within the ski resort and is close to all amenities in the destination. After the finalization of the takeover process, Valamar will manage two hotels in Austria where more than 130 Valamar employees from Croatia can be employed during the winter season.

This acquisition with a new investor is an important advance for Valamar in expanding its portfolio internationally, and managing hotel and tourist properties in the best winter holiday destinations in Austria and Italy. One of the largest Austrian shareholders of Valamar Riviera, Gustav Wurmboeck, has initiated the recapitalization of the Austrian subsidiary Valamar A GmbH with the aim of accelerating the expansion of the Valamar Group's portfolio whereby the acquisition of the Marietta hotel represent the first step towards new growth and development.

The completion of these transactions is subject to certain steps and conditions that need to be met and the same is expected by the end of 2021.

Valamar Riviera d.d.