ZPC Otmuchow S.A. — Major Shareholding Notification 2017

Jul 6, 2017

Zakłady Przemysłu Cukierniczego Otmuchów S.A., ul. Nyska 21,48-385 Otmuchów

Dear Sir or Madam.

Xarus Holdings Limited with its registered office in Larnaca (the Republic of Cyprus), Cypriot law company, address: 61 Lordou Vyronos Street, Lumiel Building, 4th Floor, 6023, Larnaca, Cyprus, entered to the Cyprian register of entrepreneurs under number HE: 260354 ("Xarus") based on Article 69 paragraph 2 point 1) and 2) in connection with Article 69 paragraph 4 points 1) - 9) of the Act of 29 July 2005 on Public Offering, the Conditions Governing the Introduction of Financial Instruments to Organized Trading, and on Public Companies (Journal of Laws 2016, item 1639, as amended) ("Act") notifies that:

as a result of the acquisition on the Warsaw Stock Exchange on 6th of July 2017 861.556 of shares of a public company ZAKŁADY PRZEMYSŁU CUKIERNICZEGO OTMUCHÓW S.A. with its registered office in Otmuchów, address: Nyska Street 21, 48-385 Otmuchów, entered into the Register of Entrepreneurs of the National Court Register maintained by the District Court in Opole, , VIII Commercial Division of the National Court Register under the KRS number: 0000028079 (hereinafter referred to as "Company") ("Transaction") there was a change in the shareholding representing more than 33% of the voting rights in the Company owned by Xarus as a result of the increase of 6.76% of the voting rights in the Company owned by Xarus.

On the day preceding the Transaction Xarus held 6.491.750 shares of the Company, representing 50,92% of the Company's share capital and entitling to 6.491.750 votes at the General Meeting of the Company, representing 50,92% of the total number of votes at the General Meeting of the Company.

Currently after the Transaction, Xarus hold 7.353.306 shares of the Company, representing 57,68% of the Company's share capital and entitling to 7.353.306 votes at the General Meeting of the Company, representing 57,68% of the total number of votes at the General Meeting of the Company.

There are no subsidiaries of Xarus which directly or indirectly hold the Company's shares.

are no circumstances mentioned in Article 87 paragraph 1 point 3 letter c) There in connection with Article 69 paragraph 4 point 6) of the Act therefore, there are no persons referred to in this provision.

There are no financial instruments referred to in Article 69 paragraph 4 points 7) - 8) of the Act.

In accordance to Article 69 paragraph 4 point 9) of the Act, currently after the Transaction, Xarus hold 7.353.306 shares of the Company, representing 57,68% of the Company's share capital and entitling to 7.353.306 votes at the General Meeting of the Company, representing 57,68% of the total number of votes at the General Meeting of the Company.

Sincerely, Kyriakos Kyriakou The Director