ZPC Otmuchow : Current report No. 23/2016

Otmuchow, September 9th 2016

Current report no 23/2016

Subject: Information on intragroup transactions of purchase of shares between subsidiaries.

Legal Basis: Art. 17 paragraph 1 MAR - confidential information.

According to report No. 13/2016 on the transfer of assets within the ZPC Otmuchów, the Board of ZPC Otmuchów SA (The Issuer) hereby informs that in the course of transformation processes related to the implementation of the updated strategy of the Capital Group of the Issuer, on September 9, 2016, the Extraordinary General Meeting of Shareholders Otmuchów Marketing Sp. o.o. (Otmuchów Marketing) adopted a resolution on reduction of share capital through redemption of Otmuchów Marketing 454 963 own shares Otmuchów Marketing.

At the same time on the same day the transaction takes place of purchase for redemption by Otmuchów Marketing companies own shares entitled Jedność sp. z o.o. and the Przedsiebiorstwo Wyrobow Cukierniczych "ODRA" SA a total volume of 454 963 shares. The shares were acquired for a total consideration of approx. 4.8 million zł, the shares were valued by net assets.

In connection with the acquisition and redemption of own shares of the companies Jedność and PWC Odra currently the sole shareholder of Otmuchów Marketing Sp. z o.o. remains ZPC Otmuchów SA. Reduction of the share capital in Otmuchów Marketing due to the eliminations has no effect on the consolidated financial statements of the Issuer.

Current report ZPC OTMUCHOW S.A.

At the same time, the Issuer explains that the event referred to above is the next step to re-organize business areas of the ZPC Otmuchów in connection with the updated strategic directions of development of the Capital Group ZPC Otmuchów, about which the Issuer informed in the current report no 3/2016 of 30 March 2016.

- 2 -