Fondul proprietatea : is celebrating the five year anniversary since listing on the Bucharest Stock Exchange

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FRANKLIN TEMPLETON INVESTMENT MANAGEMENT

LIMITED UNITED KINGDOM Bucharest Branch

Premium Point Building 78-80 Buzesti, 8th floor Bucharest 011017

Romania

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FROM: Franklin Templeton Investments

www.franklintempleton.co.uk

For more information, please contact: Bucharest: Elena Birjovanu, +40 21 200

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FOR IMMEDIATE RELEASE: 26 JANUARY 2016

FONDUL PROPRIETATEA IS CELEBRATING THE FIVE YEAR ANNIVERSARY SINCE LISTING ON THE BUCHAREST STOCK EXCHANGE

Bucharest, 26 January 2016 - Franklin Templeton Investment Management Limited UK Bucharest Branch, in its capacity of Sole Director and Fund Manager of Fondul Proprietatea

S.A. ("the Fund"), celebrates its five year anniversary since the Fund's listing on the Bucharest Stock Exchange ("BVB") on 25 January 2011 and marks a period of major achievements for the Fund and its underlying companies following ongoing efforts to create value for its shareholders, improve corporate governance in state-owned enterprises ("SOEs") and develop the local capital market.

Dr. Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, commented: "Looking back over the last five years, we are proud to see the great transformation of the Fund and the companies in its portfolio, and the immense contribution of the local team of analysts on the ground. Fondul Proprietatea is undoubtedly the most visible and liquid company on the Bucharest Stock Exchange. It has also acted as a gate into the country for foreign capital, having attracted since its listing over EUR 1.4 billion1in direct portfolio investments from foreign institutional investors. We are looking forward to the next five years of achievements."

Commenting on what lies ahead for the Fund, Greg Konieczny, Fund Manager of Fondul Proprietatea, said: "Fondul Proprietatea has lobbied continuously for the development of the capital market. There is still much work to be done and the only way further progress can be achieved is through the listing of new companies on the stock exchange. We are constantly working towards improving the efficiency and profitability of portfolio companies, but it is now the Government's turn to make the next move and demonstrate their commitment to listing them on the stock exchange. Companies such as Hidroelectrica, Aeroporturi Bucuresti, Portul Constanta, Posta Romana and Salrom are viable candidates and we hope to see them listed in 2016 and 2017".

1 Source: Fund Manager, as at 25 January 2016

Commenting on the significant interest of investors in the EMEA region, Greg added: "2015 was a record year for the EMEA region in terms of the privatization IPO volume, which stood at EUR 13 billion (five IPOs), up significantly from €2billion (four IPOs) in 20142. Unfortunately, Romania has not attracted any funds through privatisations in 2015. We hope the Government will take advantage of this window of opportunity this year".

In the five years since its listing, Fondul Proprietatea has had a major positive impact on the companies within its portfolio, advocating for corporate governance, which has firmly positioned Romania on the radar of the largest investors in the world, while generating added value for its shareholders.

Some of the most significant highlights achieved in the last five years since the Fund's listing on the BVB were:

• The discount has narrowed from an average of roughly 55.7% in 2011 to a year-to-date level of 35%3and a record low of 20% in April 2015, before the Fund's listing on the London Stock Exchange.

• The cumulative performance of the share price of the Fund has gone up over 71%4since 2011, while the NAV per share it has increased by nearly 24%5over the past 5 years.

• The shareholders have received a total of RON 6.29 billion (EUR 1.42 billion)6in the last five years, through dividends, returns of capital and share buybacks.

• The Fund has been the main promoter of listing of state owned companies on the Bucharest Stock exchange and 2 out of 3 IPOs that have taken place in 2013 and 2014 are from the Fund's portfolio (Romgaz and Nuclearelectrica).

• The Fund has increased the visibility of Romania and the local market through the successful secondary listing on the London Stock Exchange, through Analyst & Investor Days events in Bucharest, London, and New York, as well as numerous road-shows that have attracted significant interest from large foreign institutional investors.

• The Fund has also sold partial or entire stakes in some of the largest SOEs (Romgaz, Transelectrica, Transgaz, and Conpet) and OMV Petrom to generate liquidity for the Fund and to help increase the free float of those companies. The total value of the Fund's Shares Placements exceeded EUR 445 million7.

• The continuous efforts to improve corporate governance in portfolio companies have resulted in significant performance for the 21 SOEs in the Fund's portfolio:

  • The total EBITDA for the 21 companies increased by 71% in 2014 compared with 2011, to RON 7.13 billion8, while the net profit has gone up 80%9in the same period.

  • Hidroelectrica is one positive example, by going in just two years from RON 500 million losses in 2012 to a record profit of RON 941 million in 201410.

2 Source: ING's 2015 Equity Capital Markets Review‌

3 As at 22 January 2016

4 As at 31 December 2015

5 As at 31 December 2015 6 Source: Fund Manager 7 Source: Fund Manager‌‌

8 Source: Financial statements of SOEs in Fondul Proprietatea portfolio for FY 2014

9 Source: Financial statements of SOEs in Fondul Proprietatea portfolio for FY 2014

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Launched in December 2005, Fondul Proprietatea ("the Fund") was established to compensate Romanians whose properties were confiscated by the former communist government. An international tender was announced in December 2008, and Franklin Templeton Investments officially took over as investment manager and sole administrator of the Fund on 29 September 2010. The Fund is a closed-end investment company and its investment objective is the maximization of returns and per-share capital appreciation via investments mainly in Romanian equities and equity-linked securities. Fondul has been trading on the Bucharest Stock Exchange since 25 January 2011 and has been listed on the Specialist Fund Market of the London Stock Exchange by means of global depositary receipts ("GDRs") on 29 April 2015.

Franklin Templeton established an office in Bucharest in May 2010, with a team of 30 employees, including 6 locally based investment professionals who are further supported by the over 40 portfolio managers and analysts of the wider Templeton Emerging Markets team.

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. Through specialized teams, the Company has expertise across all asset classes- including equity, fixed income, alternative and custom solutions. The Company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California-based company has more than 65 years of investment experience and over $763 billion in assets under management as of December 31, 2015. For more information, please visit www.franklintempleton.co.uk.

Franklin Templeton Investment Management Ltd.'s office in Bucharest is located at Premium Point, 7-8th floors, 78-80 Buzesti, District 1, Bucharest, Romania. Tel: [phone], Fax: [phone]. For more information on Fondul Proprietatea, please visit http://www.fondulproprietatea.ro.

This press release is intended to be of general interest only, and does not constitute professional advice. Franklin Templeton Investments and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton Investments makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton Investments shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. Any research and analysis contained in this document has been procured by Franklin Templeton Investments for its own purposes.

Issued by Franklin Templeton Investment Management Limited UK Bucharest Branch. Franklin Templeton Investment Management Limited UK Bucharest Branch is authorised and regulated in Romania by ASF.

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10 Source: Financial statement of Hidroelectrica for FY 2014