The Republic of Croatia and Orco Property Group Suspend Arbitration Proceedings

Pursuant to the agreed roadmap, the parties will suspend the arbitration proceedings that
consist of Orco's claim and the State of Croatia's counterclaim. In the following months the
parties will try to find solutions to stabilize the company, improve their mutual relationship
and define future cooperation (a new shareholders' agreement) for the benefit of their joint
investment in Sunčani Hvar d.d. in order to conclusively terminate the arbitration
proceedings.

Jean-François Ott, President and CEO of Orco stated: "This is a significant step towards
the ongoing financial and operational recovery of Sunčani Hvar. I thank the
representatives from the State of Croatia who have diligently worked with me over the past
few weeks to put together a roadmap that I trust will soon be formalized with a new
shareholders' agreement. With the arbitration proceedings suspended, we can focus our
energies during the summer season on providing our guests to the Island of Hvar with an
exceptional experience."