Entry into force of IPS changes

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

Current report according to Article 234 para. (1) letter z) thereof, 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 letters c) and d) of the Code of the Bucharest Stock Exchange, Title II, Issuers and Financial Instruments.

Important events to be reported:

Entry into force of changes for Investment Policy Statement

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 the changes to the Investment Policy Statement, as approved by shareholders during the Extraordinary General Meeting of Shareholders on 28 April 2020, enter into force on 23 July 2020.

The Investment Manager reminds investors that Law no. 243/2019 regulating the alternative investment funds and amending and supplementing certain normative acts (the "AIF Law") entered into force on 23 January 2020, repealing, among others, a number of the relevant provisions regulating the Fund starting with 23 July 2020. According to the AIF Law, the Fund is expressly qualified as an alternative investment fund oriented to retail investors.

All investment restrictions are published on the Fund webpage, Investments section, Investment Strategy.

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

Johan MEYER

Legal Representative

Report date:

22 July 2020

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:

[email protected]

Internet:

www.fondulproprietatea.ro

Sole Registration Code with the Trade Register Office:

18253260

Order number in the Trade Register:

J40/21901/2005

Subscribed share capital:

RON 3,959,264,762.44

Paid-up share capital:

RON 3,770,082,340.44

Number of shares in issue:

7,613,970,697

Number of paid shares:

7,250,158,347

Regulated market on which the issued securities are traded:

Shares on Bucharest Stock ExchangeGDRs on London Stock Exchange