After a careful and thorough review, Samsung C&T is progressing with the proposed merger by due process with the goal of gaining traction for mid to long-term growth and to maximize shareholder value.

Regarding the contents disclosed by foreign hedge fund Elliott in the morning of June 26 (KST), Samsung C&T sees that the material includes no new argument, and will not dignify it with a response.

Regarding Elliott's assertion that Samsung C&T denied the possibility of the merger when asked in early 2015, Samsung C&T said the Company replied to Elliott that the merger was not being discussed at the time of the inquiry. Also, it would be both realistically and legally not possible for Samsung C&T to discuss future possibility of a merger.

Through external accounting and legal advisors, Samsung C&T has conducted extensive due diligence on Cheil Industries and valuation of the businesses and assets of both companies. Following a comprehensive and fair assessment on all legal and business issues, the Company concluded that the transaction would be in the best interest of Samsung C&T and all shareholders; accordingly, the merger was approved by the Company's board of directors.

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