Duna House : Extraordinary information Authorization for own share purchase for employee share ownership plan 2018.02.15

EXTRAORDINARY NOTICE

DUNA HOUSE HOLDING Public Limited Company (seat: 1016 Budapest, Gellérthegy str. 17, Hungary; company registration number: Cg. 01-10-04838; hereinafter referred to as "Company"), with reference to Article 5 of the Regulation (EU) No 596/2014, Section 55 of Act CXX. of 2001 on the Capital Market, and the detailed provisions on public notice obligation of Decree No. 24/2008. (VIII.15.) PM of the Minister of Finance publishes the following information within the form of extraordinary notice:

The General Meeting of the Company, with its Resolution 22/2017. (04.20) has authorized the Board of Directors -for a definite 18 months' term counted from the passing of the Resolution- to purchase a maximum number of 153.050 pieces of common shares of series "A", with a nominal value of HUF 50 per share, issued by the Company, between HUF 3.300 and HUF 6.000 purchase price per share.

The Board of Directors of the Company, in compliance with the provisions defined in the above General Meeting Resolution, and upon the authorization granted by the same Resolution, on January 30, 2018 approved the purchuse of common shares of series "A", registered under ISIN code HU0000135090, issued by the Company, on the stock market or in over-the-counter transactions with the aim to enable the Company ensure the founder's financial contribution required for the future establishment of an Employee Stock Ownership Plan based on sections 24/A-24/L of the Act XLIV of 1992.

The Board of Directors shall publicly disclose information regarding own share transactions for the above purpose in accordance with Section 1.13 of Annex 4 of the detailed provisions on public notice obligation of Decree No. 24/2008. (VIII.15.) PM of the Minister of Finance, and shall submit a report on the consecutive General Meeting of the Company based on Section 3:223.§ (4) of the Civil Code, simultaneously with the submission of the detailed proposal on the establishment of the Employee Stock Ownership Plan.

In order to provide comprehensive information to our respected Investors, the proposal for the Remuneration Policy in the Employee Stock Ownership Plan, to be submitted on the forthcoming General Meeting, is attached to the present notice.

The objective of the proposed Remuneration Policy is the development of a remuneration system which is in compliance with the Company's business strategy and which aims at improving its performance, with a relevant HR strategy, the Company's long term interests and corporate values, and which, at the same time offers a motivating remuneration path for the Participants of the Program.

Implementation of the Remuneration Policy and the Employee Stock Ownership Plan based on the policy will, by incentivizing the long term improvement of corporate performance, ensure that the interest of the participants and the Company are in harmony. It is the Company's prime interest to motivate the participants to achieve performance increase in addition to high quality work, as well as to make the participants interested in the Company's long term profitable operation. The Remuneration Policy shall encourage deepening dedication of the participants of the program, and shall make them interested in increasing the value of the Company by keeping their remuneration connected to the price of DUNA HOUSE Shares. It is the further goal of the Employee Stock Ownership Plan to increase the long term dedication of the participants towards the Company.

As detailed in the proposal, participants of the Employee Stock Ownership Plan shall be granted call options in relation of the Company's common shares in case when certain profitability indicators of the Company improve, following an obligatory two years long defined legal relation with the Company. Participants will have 90 calendar days to execute the option at a price defined by the General Meeting. Participants are prohibited to sell the shares acquired by executing their options at a price lower, than the IPO price of the shares on the BSE, i.e. below HUF 3,960-, per share.

Based on the intent of the Board of Directors and the draft proposal for the Remuneration Policy, the Company's deputy to the CEO and the leaders of other business divisions and segments chosen based on strategic relevance can participate in the Employee Stock Ownership Plan.

In accordance with the proposal, the first share option program to be launched in 2018 will open with seven participants, and with the total number of acquirable common shares of 31.200 pieces.

Budapest, 1st of February, 2018.

Duna House Holding Plc