Friday, 21/11/2014

Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and relevant legislation, Pozavarovalnica Sava, d.d., Ljubljana ("Sava Reinsurance Company") hereby announces the following:

Regarding the news article "Sava Re kupuje lastne delnice" (eng. "Sava Re Buys Own shares") by Silva Čeh published in the daily Delo on 21 November 2014, Sava Reinsurance Company hereby clarifies that the following sentence (given translated):

"Sava Re also informs all shareholders that trading in POSR shares through the regulated market of the Ljubljana Stock Exchange in order to affect quoted market prices was considered market manipulation, which is prohibited by law."

is an inadequate summary of the text in the "Invitation to submit a binding offer as a shareholder of Pozavarovalnica Sava d.d. in the OTC buy-back programme", which the Company published on 20 November 2014 on the website of the Ljubljana Stock Exchange d.d., in the SEOnet information system (http://seonet.ljse.si) and on the Company's official website (http: // www.sava-re.si).

The text of the notice to shareholders in the published invitation to shareholders reads as follows:

"Important notice regarding the market manipulation

Sava Re informs all shareholders that trading with POSR shares through Ljubljana Stock Exchange organized market in order to affect stock-exchange price may be considered as a market manipulation, which is prohibited by Financial Instruments Market Act (Official Gazette, number 67/07 with amendments) and by The criminal code (Official Gazette, number 55/08 with amendments)."

To avoid any potential misinterpretation of the above article, we provide below a further clarification.

The notice regarding market manipulation is intended to inform shareholders that transactions on a regulated market that are solely aimed at affecting stock market prices may constitute an act of market manipulation. 

This announcement willbe available on the Company's website at www.sava-re.si, at least five years from the date of the announcement.

distributed by