Bank BPH : Registration of the decrease of share capital of Bank BPH S.A.

Registration of the decrease of share capital of Bank BPH S.A.

20 October 2016

The Management Board of Bank BPH S.A. ('Bank BPH') with reference to Bank BPH's current report No. 10/2016 of 1 April 2016 concerning the information from significant shareholders regarding the execution of a share purchase and demerger agreement regarding the acquisition of the demerged business of Bank BPH and the execution by Bank BPH of a pre-demerger and co-operation agreement with Alior Bank S.A.('Alior Bank'), current report No. 12/2016 of 30 April 2016 on agreeing and signing the demerger plan of Bank BPH ('Demerger Plan') and the first notification of the intended demerger of Bank BPH and current report No. 26/2016 of 30 June 2016 concerning the second notification of the intended demerger of Bank BPH, gives notice that on 20 October 2016 it learned about the registration on 20 October 2016, by the District Court for Gdańsk-Północ in Gdańsk, 7th Business Division (National Court Register) of the decrease of Bank BPH's share capital from the amount of PLN 383,339,555.00 to PLN 148,498,800.00 (the 'Registration of the Bank BPH Share Capital Decrease'), in connection with the demerger of Bank BPH pursuant to Article 529 § 1 Clause 4 of the Commercial Companies Code adopted based on the resolution of the Extraordinary General Meeting of Bank BPH dated 28 September 2016.

The Registration of the Bank BPH Share Capital Decrease marks one of the milestones of the registration process connected with the divestment to Alior Bank of part of Bank BPH's business, in the form of an organized part of the Bank BPH business enterprise comprising all the assets and liabilities defined in the Demerger Plan, constituting the core business of Bank BPH (the 'Bank BPH Core Business'). The transfer of the Bank BPH Core Business to Alior Bank shall take place upon the registration of the demerger of Bank BPH and increase of the share capital of Alior Bank related to the demerger by the District Court for the Capital City of Warsaw in Warsaw, 13th Business Division (National Court Register), which is the relevant court for Alior Bank, of which Bank BPH shall give notice in a separate current report.

As a result of the Registration of the Bank BPH Share Capital Decrease, all of the Bank BPH shares held by Alior Bank, i.e., 46,968,051 Bank BPH shares, will cease to exist.