Orbis : Conclusion by “Orbis” S.A. of a preliminary purchase agreement of real estate in Krakow

Current report no. 33/2018

September 28, 2018

Subject: Conclusion by "Orbis" S.A. of a preliminary purchase agreement of real estate in Krakow

Legal grounds: Article 17. 1 MAR - Confidential information.

The Management Board of "Orbis" Spółka Akcyjna (the "Issuer") hereby informs that on September 28, 2018, the Issuer executed a preliminary sales agreement based on which the Issuer intends to purchase a real property (plot of land) with a total area of 595 square meters, located in Krakow at 6, Worcella Street (the "Real Property"), for a net price of PLN 9.2 million plus the due tax on goods and services (VAT).

The parties agreed that the final sale and purchase agreement of the Real Property will be executed not later than by September 30, 2020, following fulfilment of conditions, including transfer of the decision on building conditions on the Issuer and demolition of the building currently located on the Real Property. In order to secure the transaction, after fulfillment of each particular condition, the Issuer shall gradually pay an earnest money (zadatek) to the seller in the total amount equal to 30% of the sale price.

The purchase of the Real Property is associated with the subsidiary new investment of the Issuer (hotel construction), which Issuer intends to implement on the above-mentioned Real Property and on the neighboring real property at 8, Worcella Street (the Issuer provided information about the purchase of this real property in the current report no. 6/2018 of February 20, 2018). The Issuer is analyzing the technical and operational details of the investment project, which will determine the choice of an optimal brand under which the hotel will operate. The purchase of the Real Property in combination with the real property at 8, Worcella Street, which is already owned by the Issuer, will permit increasing the size of the prospective hotel and selection of the brand with a greater flexibility.

The transaction is in line with the Issuer's strategy of concentrating its own investments in key city markets of the region that offer long-term value growth and an attractive investment yield.

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"Orbis" S.A., 16 Bracka street, 00-028 Warsaw, registered in the District Court for the Capital City of Warsaw, XII Commercial Division, National Court Register [KRS], Register of Business Operators no. 0000022622, share capital of PLN 92,154,016 (paid-up in full), tax identification number NIP 526-025-04-69.