Fondul Proprietatea Regulatory News (FP.)

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

Current report according to Article 234 para. (1) letter k) of the Financial Supervisory Authority Regulation no. 5/2018 on issuers of financial instruments and market operations, as well as the provisions of Article 99 letter f) of the Code of the Bucharest Stock Exchange, Title II, Issuers and Financial Instruments.

Important events to be reported:

Registration with the Trade Registry of the decrease of the subscribed share capital following the cancellation of 158,508,824 treasury shares

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch ("the Investment Manager"), in its capacity of investment manager of Fondul Proprietatea SA ("the Fund"), would like to inform investors that on 29 June 2018, the Trade Registry registered Resolution no. 4/26 September 2017 of the Fund's Extraordinary General Shareholders' Meeting which approved the decrease of the subscribed registered share capital from RON 4,854,034,784.56 to RON 4,771,610,196.08, by cancelling a number of 158,508,824 treasury shares acquired by the Fund (90,849,151 shares repurchased within the seventh buyback programme and 67,659,673 shares repurchased within the eighth buyback programme).

The decrease was endorsed by the Financial Supervisory Authority through Endorsement no. 163/30 May 2018, enclosed herein for reference.

Consequently, as of today, the new value of the Fund's subscribed share capital is RON 4,771,610,196.08 (divided into 9,176,173,454 shares with a nominal value of RON 0.52/share), while the value of the paid-up share capital is RON 4,582,427,774.08 (divided into 8,812,361,104 shares with a nominal value of RON 0.52/share). The updated Constitutive Act can be also found on the Fund's webpage at: https://www.fondulproprietatea.ro/files/live/sites/fondul/files/en/corporate-governance/Constitutive%20Act%20in%20force%20updated%20at%2029%20June%202018.pdf

Following this decrease, the new limit for the maximum number of shares to be purchased under the current ninth buy-back programme is 1,761,024,502. Considering the treasury shares already acquired as at the end of the trading day of 22 June 2018, the Fund may now repurchase up to 385,358,168 shares during the ongoing buy-back programme.

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch acting as Investment Manager of FONDUL PROPRIETATEA S.A.

Oana Valentina TRUŢA

Legal Representative

Report date:

29 June 2018

Name of the issuing entity:

Fondul Proprietatea S.A.

Registered office:

78-80 Buzesti Street

7th floor, district 1,

Bucharest, 011017

Phone/fax number:

Tel.: + 40 21 200 9600

Fax: + 40 21 200 9631

Email:

office@fondulproprietatea.ro

Internet:

www.fondulproprietatea.ro

Sole Registration Code with the Trade Register Office:

18253260

Order number in the Trade Register:

J40/21901/2005

Register on Data Protection Notification Register under number:18668

Subscribed share capital:

RON 4,771,610,196.08

Paid-up share capital:

RON 4,582,427,774.08

Number of shares in issue:

9,176,173,454

Number of paid shares:

8,812,361,104

Regulated market on which the issued securities are traded:

Shares on Bucharest Stock ExchangeGDRs on London Stock Exchange