Update regarding the Fund's buyback programmes

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

Current report according to Article 99 of the Rule book of the Bucharest Stock Exchange Market Operator, Title II, Issuers and Financial Instruments

Important events to be reported:

Update regarding the Fund's buyback programmes

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch ("the Investment Manager"), in its capacity as Investment Manager of Fondul Proprietatea S.A. ("the Fund") would like to update shareholders and investors on the status of its buyback programmes.

1. Termination of the ninth buyback programme

The ninth buyback programme approved by Resolution no. 5 of the Extraordinary Shareholders' Meeting of Fondul Proprietatea S.A. of 26 October 2017 ("EGM Resolution"), will be terminated on 31 December 2018.

The share capital decrease for cancelling the shares acquired during this buyback programme will be subject to a future shareholders' meeting during 2019.

2. Start of the tenth buyback programme

In accordance with EGM Resolution no. 4 of 14 November 2018 published in the Official Gazette of Romania, Part IV, no. 4592 on 4 December 2018, the tenth buyback programme refers to the acquisition of a maximum number of 750,000,000 shares and/or equivalent global depository receipts corresponding to the Fund's shares ("GDRs"). The duration of the tenth buyback programme is 1 January - 31 December 2019. The shares repurchased during this buyback programme will be cancelled.

The trade price range for the programme is RON 0.2 / share to RON 2 / share. Currently, the maximum amount allocated to this programme for the maximum number of shares as described above is RON 1,500,000,000 (excluding brokerage fees and other acquisition related costs).

Following the evaluation of the offers submitted in the brokers' selection process, Auerbach Grayson and Banca Comerciala Romana S.A. have been selected to provide brokerage services for the tenth buyback programme.

The Fund is allowed to buyback daily up to 25% of the average daily volume of the Fund's shares (whether in the form of ordinary shares of the Fund or GDRs) on the regulated market on which the purchase is carried out, calculated in accordance with the applicable law. The Investment Manager will report on a weekly basis on the progress of this buyback programme according to legislation in force.

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

Călin METEȘ

Legal Representative

Report date:

28 December 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:

[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 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