Current Report 03/2017

Only the Polish version of this document is legally binding.
This translation is provided for information only.
Every effort has been made to ensure the accuracy of this publication.

The Management Board of INPRO S.A. (the "Company") informs that on 23/01/2017 it received a notice of entry on 03/01/2017 by the Gdańsk-North District Court in Gdańsk, 3rd Land and Mortgage Division, in section IV of land and mortgage register No. GD1G/00049979/1, of contractual real estate mortgages on the assets of INPRO S.A. constituting a legal security for the repayment of credit granted to the Company by a consortium of banks: SGB - Bank S.A. with its registered office in Poznań, Bank Spółdzielczy in Pruszcz Gdański with its registered office in Pruszcz Gdański ("BS I") and Bank Spółdzielczy in Tczew with its registered office Tczew ("BS II"), collectively called the "Bank," on the basis of working capital credit agreement No. OBRKK/6/2016/35239 of 14/07/2016 up to the amount of PLN 22,500,000.00.

The Company advised of the conclusion of the credit agreement in current report No. 23/2016 of 14/07/2016.

The mortgage entry was made in division IV of land and mortgage register No. GD1G/00049979/1 and concerns:

the following mortgages established on the equal priority principle:
1. The contractual real estate mortgage up to PLN 22,500,000 for SGB-Bank securing the principal with interest and other costs under credit agreement No. OBRKK/6/2016/35239 of 14/07/2016, encumbering the ownership right of INPRO S.A. to real estate covered by the Optima project, stage I, located in Gdańsk, Stężycka Street, for which real estate the Gdańsk-North District Court keeps land and mortgage register No. GD1G/00049979/1;

2. The contractual real estate mortgage up to PLN 2,250,000 for BS II securing the principal with interest and other costs under credit agreement No. OBRKK/6/2016/35239 of 14/07/2016, encumbering the ownership right of INPRO S.A. to real estate covered by the Optima project, stage I, located in Gdańsk, Stężycka Street, for which real estate the Gdańsk-North District Court keeps land and mortgage register No. GD1G/00049979/1;

3. The contractual real estate mortgage up to PLN 9,000,000 for BS I securing the principal with interest and other costs under credit agreement No. OBRKK/6/2016/35239 of 14/07/2016, encumbering the ownership right of INPRO S.A. to real estate covered by the Optima project, stage I, located in Gdańsk, Stężycka Street, for which real estate the Gdańsk-North District Court keeps land and mortgage register No. GD1G/00049979/1;

The value of the asset (land) on which the above security was established is, in the books of accounts of INPRO S.A., PLN 4,040,325.00.

There are no connections between the Company, its managers and supervisors and the Bank and its managers.

The Company's Supervisory Board gave its consent to establishing the above mortgage by way of resolution No. 19/2016 of 28 June 2016.

Detailed legal grounds: Article 17 par. 1 of the Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014 on market abuse (the market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (also referred to as the MAR)