Payment of the 2019 financial year dividend

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

Current report according to Article 77 of the Issuer Law no. 24/2017, Article 145 para. (1) 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:

Payment of dividends related to the 2019 financial year

Franklin Templeton International Services S.À R.L., in its capacity as alternative investment fund manager and sole director (the "Fund Manager") of Fondul Proprietatea S.A. (the "Fund"), would like to inform shareholders that the Fund will start the payment of the dividends related to the 2019 financial year on 1 July 2020 ("Payment Date").

The gross value of the dividend is RON 0.0642 per share, as approved on 28 April 2020, during the Fund's Ordinary General Meeting of Shareholders.

Holders of fully paid-up shares registered in the Fund's shareholders' registry kept by the Central Depositary, on the Registration Date of 10 June 2020, are entitled to receive this dividend. The Ex - Date is 9 June 2020.

The payment shall be performed as follows:

a) directly by the custodian bank or broker for shareholders having a custodian/brokerage account;

b) for all other shareholders:

(i) by the Central Depositary, through BRD Groupe Societe Generale (acting as payment agent and further referred to as the "Payment Agent"), for bank transfers when the supporting documentation required by the Central Depositary, along with a payment request, have been submitted.

(ii) by the Payment Agent for cash payments at any of its agencies, or by bank transfer (when the supporting documentation required by the Payment Agent, along with a payment request, have been submitted to the Payment Agent).

More details regarding this dividend payment, including its tax implications, documents to be submitted to benefit of certain tax exemptions or lower tax rates, can be found in the payment procedure available on the Fund's webpage at https://www.fondulproprietatea.ro/home/investor-relations/dividends-distributions.html.

In relation to the said tax exemptions and reduced tax rates, we would like to emphasize that all documents and/or clarifications entitling shareholders to benefit from a reduced withholding tax rate or tax exemption must be provided to the Fund by 23 June 2020 (as further detailed in the said payment procedure). Given that some tax issues may require a more detailed analysis or additional clarifications, it is strongly recommended that the necessary documents to be submitted to the Fund prior to 23 June 2020.

Also, as an important notice to shareholders, this dividend payment is subject to the general statute of limitation. As such, shareholders may request the payments only within a three-year term starting with the Payment Date, namely by 1 July 2023.

We would want to remind shareholders that we maintain the measures to prevent and limit the impact of COVID-19 in place. The Fund Manager has in place a business continuity plan for cases when the activity can no longer be performed from the Fund's headquarters as in the normal course of business, plan that involves remote work.

Since the first COVID-19 case was confirmed in Romania, the Fund Manager has carefully monitored the evolution of the situation as presented by the authorities and implemented additional hygiene and disinfection measures.

At the same time, the Fund Manager has decided that it is safer to restrict the access of any visitors to the Fund headquarters during pandemic period (at least when a state of emergency or a state of alert is in place), with the possibility of extending these measures even after it, according to of the evolution of events regarding COVID-19 in Romania.

FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l. Luxembourg Bucharest Branch acting as Alternative Investment Fund Manager of FONDUL PROPRIETATEA S.A.

Johan MEYER

Permanent representative

http://www.rns-pdf.londonstockexchange.com/rns/3552O_1-2020-5-29.pdf

Report date:

29 May 2019

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