Takinga decision on the intention to start the procedure of merging the Issuerwith its subsidiaries. Management Board of the Korporacja Gospodarcza_quot;Efekt_quot; S.A. (Company, Issuer) announces that today the Issuer'sManagement Board decided to merge the _quot;EFEKT_quot; S.A. Business Corporation.(as the acquiring company - hereinafter also: the _quot;Acquiring Company_quot;)with subsidiaries: a) a company under the name: EFEKT-HOTELE SpółkaAkcyjna with its seat in Krakow b) a company under the name: _quot;LIDERHOTEL_quot; limited liability company with its seat in Krakow The merger ofthe companies will take place by transferring all assets of the AcquiredCompany to the Acquiring Company - merger by acquisition in accordancewith Art. 492 §1 point 1 of the Code of Commercial Companies(hereinafter: _quot;CCC_quot;). Due to the fact that the Acquiring Companydirectly holds 100% of shares in the share capital of the AcquiredCompany 1 (being a sole shareholder company of the Acquiring Company)and 100% of shares in the share capital of the Acquired Company 2, themerger of the companies will be carried out - pursuant to Art. 514 ofthe Commercial Companies Code, art. 516§6 in connection with joke. 516§5and art. 500§2ą of the Commercial Companies Code - according to thefollowing rules: - without increasing the share capital of the AcquiringCompany (Art. 514 of the Commercial Companies Code); - The Merger Planwill not contain the elements indicated in Art. 499§1 items 2-4 of theCommercial Companies Code, ie it will not define the ratio of exchangeof shares of the Acquired Company to shares of the Acquiring Company;rules regarding the allocation of shares in the Acquiring Company; theday from which the shares of the Acquiring Company issued to theshareholders of the Acquired Company entitle to participate in theprofit of the Acquiring Company (Art. 516§6 in connection with Art.516§5); - the Merger Plan will not be examined by a court expert byoperation of law (Art. 516§6 in conjunction with Art. 516§5 of theCommercial Companies Code); - The Merger Plan will not be published inMonitor Sądowy i Gospodarczy, but, together with attachments, will bemade available to the public free of charge on the websites of themerging Companies (Art. 500§2ą of the Commercial Companies Code). Inorder to present the reasons for and the assumed effects of the plannedmerger, the Management Boards of the merging Companies will preparenon-obligatory ones, pursuant to Art. 516§6 in connection with joke. 516§5 of the Commercial Companies Code, reports justifying the merger(taking into account the requirements specified in Art. 501 of theCommercial Companies Code). Due to the assumption that as a result ofthe merger there will be no increase in the share capital of theAcquiring Company and that there are no other circumstances requiringchanges to the Articles of Association of the Acquiring Company, theArticles of Association of the Economic Corporation _quot;EFEKT_quot; S.A. willnot be changed due to the merger of the Companies. For this reason, therequirement provided for in Art. 499 § 2 point 2 of the CommercialCompanies Code, providing for the obligation to attach to the MergerPlan the draft amendments to the Articles of Association of theAcquiring Company will also not apply. Justifying the above decision,the Management Board of KG _quot;EFEKT_quot; S.A. emphasizes that the intention tomerge with the subsidiaries EFEKT-HOTELE Spółka Akcyjna and _quot;LIDERHOTEL_quot; limited liability company is dictated primarily by the need tosimplify the security of liabilities which the Issuer is the guarantorof regarding the repayment of loans in the acquired Companies,implementation of consolidation assumptions aimed at ordering thecapital structure Korporacja Gospodarcza _quot;EFEKT_quot; S.A. and furtherreducing its operating costs. and further reducing its operating costs.In the opinion of the Management Board of _quot;EFEKT_quot; S.A., the plannedmerger with subsidiaries is also (mainly due to the possibility of usingthe simplified merger mode) the least expensive and the fastest mode tobe carried out to achieve the objectives and assumptions described above.