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 ("Investment Manager"), in its capacity as Investment Manager of Fondul Proprietatea S.A. ("Fund") would like to update shareholders and investors on the status of its buyback programmes.

1. Termination of the tenth buyback programme

The buyback programme approved by Resolution no. 4 of 14 November 2018 of the Shareholders' Extraordinary General Meeting of Fondul Proprietatea. published in the Official Gazette of Romania, Part IV, no. 4592 on 4 December 2018 ("EGM Resolution"), will be terminated on 31 December 2019. The share capital decrease for cancelling the shares acquired during this buyback programme will be subject to shareholders' meeting during 2020.

2. Start of the eleventh buyback programme

In accordance with EGM Resolution no. 5 of 15 November 2019 published in the Official Gazette of Romania, Part IV, no. 5122 on 9 December 2019, the next buyback programme refers to the acquisition of a maximum number of 800,000,000 shares and/or equivalent global depository receipts corresponding to the Fund's shares ("GDRs"). The duration of the eleventh buyback programme is 1 January - 31 December 2020. 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.

Following the evaluation of the offers submitted in the brokers' selection process, Auerbach Grayson and Swiss Capital have been selected to provide brokerage services for the eleventh 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:

17 December 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