CIG Pannonia Eletbiztosito : Extraordinary announcement on the decision of the Board of Directors regarding to the capital increase

September 12, 2017

CIG Pannónia Life Insurance Plc. (registered seat: H-1033 Budapest, Flórián tér 1.; company registry number: Cg.01-10-045857; hereinafter: 'the Company') hereby notifies its shareholders and other capital market participants that the Board of Directors decided today on the capital increase effected by means of a private placement. The nature of the capital increase effected by means of a private placement is issuing registered dematerialized, 'A' type ordinary shares representing voting rights of nominal value HUF 40 per each.

The reason for the decision on the capital increase effected by means of a private placement is that in accordance with the provisions of the investor information memorandum and the share conversation agreement the 1,881,139 pieces of 'B' and 'C' types of interest bearing shares were automatically converted into 'A' type ordinary shares on 11 September 2017.

The owners of the former interest bearing shares are entitled to get additional ordinary shares in relation with the conversion.

In order to honour its additional share issue obligations the Company's share capital has to be increased effected by means of a private placement with HUF 245,249,240,- (that is two hundred and forty-five million two hundred and forty-nine thousand two hundred and forty Hungarian Forints) by the way of issuing 6,131,231 pieces (that is six million one hundred and thirty-one thousand two hundred and thirty-one pieces) of registered dematerialized 'A' type ordinary shares representing voting rights of nominal value HUF 40 per each. The minimal planned amount of the capital increase is HUF 100,000,000,-(that is one hundred million Hungarian Forints.)

The 1,881,139 pieces of ordinary shares converted from the interest bearing shares, and the 6,131,231 pieces of ordinary shares that will be issued under the capital increase effected by means of a private placement will be listed on the stock exchange (after the creation of the shares) from 18 October 2017 according to the preliminary plans.

The legal basis of the capital increase was established by the authorisation included in the General Meeting resolution No. 28/2012. (VIII.16.).

CIG Pannónia Life Insurance Plc.

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