ECHO POLSKA PROPERTIES N.V. - Voluntary strategic update

Voluntary strategic update

ECHO POLSKA PROPERTIES N.V.
(Incorporated in The Netherlands)
(Company number 64965945)
JSE share code: EPP
ISIN: NL0011983374
(“EPP” or “the Company”)


VOLUNTARY STRATEGIC UPDATE


EPP would like to provide further context to the announcements released on SENS and the website of the Luxembourg
Stock Exchange on 20 December 2017 regarding the resignation of former non-executive director Mr. Przemyslaw Krych,
whose resignation was effected as soon as was practically possible.

According to media reports, Mr. Krych’s detention was in connection with the relationship with senator Kogut, who runs
the Foundation for Disabled People (www.fpon.org). EPP made a donation, along with other Polish corporates, in June
2017 to the foundation run by senator Kogut. These funds were allocated to the development of a national center of Autism.
This donation was among several others that EPP made to other similar foundations in the ordinary course of business
during 2017. The donation made to the Foundation for Disabled People is backed by an agreement restricting the application
of the donation by the recipient to its intended cause.

Hadley Dean, CEO of EPP said: “So far as the Company is aware, the investigations and charges against Mr. Krych relate
to Mr. Krych in his personal capacity and not in his capacity as non-executive director of EPP. Mr. Krych has never acted
for nor made any executive decisions on behalf of EPP and therefore his departure has no impact on EPP's operations, the
value of its real estate or its prospects. No EPP employee is subject to investigation or has been detained. There are no
transactions, to which EPP is a party, that have in any manner transgressed the law. From a company perspective, it is
business as usual and we continue to focus on realising our strategy and targets, which we have communicated to the
market.”

EPP wishes to note the following strategic updates:

-     EPP is proceeding with realising its strategy of becoming a leading Polish retail landlord. This includes EPP’s
      acquisition strategy which is focused on retail properties located in regionally growing Polish cities with a large
      catchment area and a proven track record as well as the recycling the Company’s office portfolio. The Company is
      progressing with all announced acquisitions and disposals as planned.

-     All funders for the first tranche of the acquisition of the Polish retail property portfolio (M1 Portfolio) as announced
      on 4 December 2017 remain committed. The transaction is proceeding as planned. The sale of EPP’s office assets is
      also proceeding as planned.

-     EPP would like to further emphasize that good corporate governance is of utmost importance to the Company and
      the Company’s management team and board of directors remain confident that all business practices are sound and
      governance principles continue to be robust.

“EPP will closely monitor the outcome of the Polish Central Anticorruption Bureau investigation. As and when more
information becomes available we will take whatever steps necessary to protect EPP’s reputation”, concludes Dean.

22 December 2017


JSE Sponsor
Java Capital
                                                                        
LuxSE Listing Agent
M Partners

More information:

Magda Cieliczko, Marketing Director Echo Polska Properties
Mobile: +48 603 203 619
magda.cieliczko@echo-pp.com

Java Capital, JSE Sponsor
Phone: +27 11 722 3050

M Partners, LuxSE Listing Agent
Phone: +352 263 868 602

Jacques de Bie, South Africa, Investor Relations, Singular Systems IR
Mobile: +27 (0)82 691 5384

Michèle Mackey, South Africa, Investor Relations, Singular Systems IR
Mobile +27 82 497 9827

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