Pursuant to the Capital Market Law and the Zagreb Stock Exchange Rules, we hereby notify that the session of the Management Board of PODRAVKA Inc. was held on 20^th February 2017 and the audited Financial Statements of PODRAVKA Group (consolidated) and PODRAVKA Inc. (non-consolidated) for 2016 were established and the proposal on profit distribution of PODRAVKA Inc. for the business year 2016.

In accordance with Article 300 b of the Companies Law, the audited financial statements for the year 2016 and proposal on profit distribution of PODRAVKA Inc. for the business year 2016 shall be submitted to the Supervisory Board of PODRAVKA Inc. for examination and approval.