1.HETA ASSET RESOLUTION AG, having its seat at the address Alpen-Adria-Platz 1, 9020 Klagenfurt am Wörthersee, Austria, a company owned by the Republic of Austria ("HETA") intends to sell a non-performing portfolio of loans and claims (the "Portfolio") of one defined Group of Borrowers currently consisting of 16 individual borrowers (individually a "Borrower", collectively the "Borrowers") with total exposure of approximately EUR 137m (the "Transaction").

2. The Portfolio currently consists of 25 loans secured by a broad range of real estate assets. The main security instruments for the claims are first-rank mortgages over commercial, residential, industrial, hotel real estate as well as land plots, each located in Croatia (the "Mortgaged Real Estate"). Most of the loans are also secured by personal guarantees and other collaterals such as share pledges, promissory notes, bills of exchange, or a combination of these instruments, as the case may be.

3. Expressions of interest ("EOI") for the Portfolio shall be submitted according to the procedure set out below.

4. The Transaction will be conducted in an open, transparent and non-discriminatory manner and is anticipated to commence shortly after the receipt of the EOIs by the Interested Party/-ies. The commercially best bid will be selected.

5. HETA has appointed PwC Advisory Services GmbH ("PwC") as the exclusive financial adviser to assist with the Transaction.

6. EOIs to participate in the Transaction submitted by interested parties (individual entities / persons or consortia; each an "Interested Party") shall at least contain the following:

a)  Name, address and short description of the Interested Party (or of each consortium member in case of a consortium), including its ultimate beneficial owner, and contact details of the person(s) who can be contacted in case of queries;

b) confirmation that the Interested Party is acting as principal for its own account or, in case of agents or brokers submitting an EOI on behalf of an Interested Party, submission of written and adequate proof of the power of representation of such agent or broker; and

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c) sufficiently precise information demonstrating that the Interested Party has the financial resources (including an indication of the envisaged debt and/or equity financing of the Transaction), proven expertise and incentive necessary to acquire the Portfolio.

7.  Interested Parties are required to submit their written EOI in English, titled "Expression of Interest for the Participation in the Transaction regarding the non-performing loan portfolio, by 12 pm CET on 01 August 2016 electronically per e-mail to the e-mail addresses below (followed by a hard copy of the EOI promptly thereafter).

8. After receipt and evaluation of the EOIs, Interested Parties may be invited to take part in the Transaction and receive further information regarding the Portfolio and the Transaction, subject to the execution of a non-disclosure agreement provided by HETA.

9. HETA reserves the right to extend the above stated deadline for the submission of EOI, amend the time limits or other terms of the Transaction, discontinue or amend the Transaction as a whole or in part, or modify the Transaction structure or change, reduce or add receivables to the Portfolio at any time, provided that HETA will at all times act in a way consistent with the principles of an open, transparent and non-discriminatory bidding process.

10. HETA also reserves the right to allow bids for a substantial part of the Portfolio at a later stage of the Transaction, provided that all or substantially all of the Portfolio can be sold as part of the Transaction. However, preferential treatment will be given to offers for 100% of the Portfolio at all stages of the transaction.

For further clarification or enquiries, Interested Parties may contact the contact persons at PwC stated below.

Project E-mail:

project.sapphire@at.pwc.com

Nikola Avramovic

E-mail: nikola.avramovic@at.pwc.com

Mathias Fritsch

E-mail: mathias.fritsch@at.pwc.com

Original copies have to be sent to:

PwC Advisory Services GmbH

Erdbergstrasse 200

1030 Vienna, Austria

to kind attention of Nikola Avramovic