Indra Sistemas : Notice of the 2017 Annual General Meeting (25/05/2017)

Alcobendas, May 25th, 2017

According to article 228 of the Securities Market Act and related legislation, Indra makes public the following:

The Board of Directors of Indra has unanimously resolved today to call a General Ordinary Shareholders Meeting according to the agenda and proposals of resolutions enclosed herewith.

This notice will be also published in compliance with article 516.2 of the LSC (Spanish Corporations Act) and related rules.

From publication of the call to the meeting and at least until the General Ordinary Shareholders Meeting takes place, all the information included under paragraph "INFORMATION RIGHTS" will be available continuously for examination in the Company's website (www.indracompany.com).

The foregoing is reported for all pertinent effects. Yours faithfully,

By resolution of the Board of Directors, Shareholders are called to the Annual Shareholders Meeting of Indra Sistemas, S.A., to be held at the corporate offices located at Alcobendas (Madrid), Avenida de Bruselas 35, this upcoming June 28th, 2017 at first call at 12:30 p.m. or, in the event a quorum is not present the next day, June 29th, 2017 at the same time and place on second call in order to consider and decide the following matters:

increase of capital pursuant to this delegation may not exceed 20% of the capital stock of the Company at the time of authorization at the Annual Shareholders' Meeting, it being understood that said limitation includes the amount of any increase in capital which may arise from the approval and execution of the proposal contained in Item Sixth of the Agenda.

Sixth.- Delegation to the Board of Directors, with express power to sub-delegate, the authority to issue in one or more offerings, bonds or debentures, simple, convertible, exchangeable into or for shares of the Company, as well as other fixed income instruments, warrants, and any other instruments conceding the right to acquire new share issuances, outstanding shares of the Company or of other companies, with a limit of 1,500 M€. This authorization includes the delegation of powers necessary, when appropriate, to: (i) determine the bases and means of conversion, exchange or exercise;

1. increase capital stock in the amount necessary to carry out conversion requests; and

2. exclude pre-emptive rights for said issuances, limited to a maximum of 20% of the nominal value of capital stock.

Shareholders representing at least three percent of the capital stock may request that a supplement to the call of General Shareholders' Meeting be published in order to include one or more items on the Agenda, so long as the new items are accompanied with supporting arguments or are certified. This right shall be exercised by sending a certified notification indicating the identity of the Shareholder(s) exercising said right and the number of shares that they own, and must be received at the Company's registered office within five days following the date when the call of the General Shareholders' Meeting was published.

The supplement to the call, if any, will be published no less than fifteen days prior to 28 June 2017, the date set for the Shareholders' Meeting at first call.

During the same period of time described above, Shareholders representing at least three percent of Company equity may also present proposals based on matters already included or which ought to be included in the Agenda of the already called General Shareholders' Meeting. The Company will assure distribution of these proposed resolutions and their accompanying documentation.

Until the fifth day before the scheduled Meeting, Shareholders may request information which they deem appropriate or clarification from the Board of Directors or they may submit written questions which they deem relevant regarding items appearing in the Agenda. Additionally, they may request information or clarification or submit written questions regarding any public information which the Company has submitted to the CNMV since 20 February 2017, the date of the last Shareholders' Meeting. For these matters, Shareholders may apply to the Shareholder Office by telephone at 91- 4809800; or by email at accionistas@indracompany.com or use forms placed on the Company website for that purpose (www.indracompany.com). In order to do this, Shareholders should present reliable identification (DNI, passport, or NIE), as well as provide information regarding the shares they own.

From publication of the call and until the holding of the Meeting, every Shareholder who wishes to do so may review the following information at the corporate offices or the Company website (www.indracompany.com) and request that it be delivered immediately and free of charge:

1. Call notice.

2. The total number of Company shares and voting rights on the date the Meeting is called.

3. Documents referred to in Article 272 of the LSC (Annual Financial Statements and Management reports of Indra Sistemas, S.A. and its Consolidated Group for fiscal 2016, as well as the report from the external auditor), which will be submitted to the Annual Shareholders' Meeting for approval as Item One of the Agenda.

4. Also regarding Item One of the Agenda, the Annual Report on Corporate Governance, which forms an integral part of the Management Report.

5. The Annual Corporate Social Responsibility Report for 2016.

6. The report regarding the independence of the 2016 Financial Statements auditor drafted by the Audit and Compliance Committee.

7. The entire text of the proposals and resolutions regarding Items of the Agenda as well as reports from the Board of Directors or supporting information regarding their contents as required by law (Items 5 and 6) or which have been otherwise considered convenient.

8. The names, professional profiles and class of each of the Directors whose re- election is proposed in Item Four of the Agenda, as well as the reports from the