Djuro Djakovic dd : General Assembly of Đuro Đaković Group Plc. adopted the decision to conduct new recapitalization of the Company

Following the resolution of the Management of Đuro Đaković Group Plc. in May 2017 to continue the Company recapitalization process, the decision to increase the nominal capital of the Company by cash contributions and issuance of New Shares with the complete exclusion of priority rights of existing shareholders in the subscription of New Shares of the Company was reached at the session of the General Assembly of the Company held earlier today, by way of exception from the obligation to previously publish a prospectus regarding the securities offer. This decision may result in an increase in the nominal capital of the Company of HRK 151,933,680 by the maximum amount of HRK 152,000,000 to maximum HRK 303,933,680.

The nominal capital increase will be carried out by public offer with the total exclusion of priority rights of existing shareholders in the subscription of New Shares. The subscription of New Shares will be carried out in one round, with any investor who makes the deposit of a minimum of HRK 800,000 per offer, for the subscribed securities, being eligible for the subscription of New Shares. The said investors can subscribe in the period of no more than three (3) months from the date indicated in the public invitation for the subscription of New Shares, providing that the place and time for the subscription of New Shares by means of written statements, as well as the payment deadline for the subscribed New Shares will be indicated in the public invitation for the subscription thereof.

All current Company shareholders may participate in the New Share subscription procedure under the same conditions applicable to other investors.

The New Share issue will be considered successful if 2,500,00 - 7,600,000 new regular registered shares, each having the nominal value of HRK 20.00, are subscribed and paid for within the previously established subscription and payment deadline. The final price of New Shares will depend on investors' demand and be determined by the decision of the Management Board of the Company within two (2) workdays following the expiry of the subscription deadline.

'Positive operating result realized in the first quarter 2017 is proof of successful implementation of the comprehensive restructuring of Đuro Đaković Group, following years of stagnation and loss generation. At this pivotal moment for the Group, the repeated nominal capital increase procedure will improve the sources of funding in the shortest period possible, to maintain the achieved level of operation in the future', stated Tomislav Mazal, CEO of Đuro Đaković Group Plc.