Current Report 25/2016

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.

In relation to receipt of internal sales reports on 6 October 2016, the Management Board of INPRO S.A. with its registered office in Gdańsk (the "Company") informs that in the third quarter 2016 the INPRO Group achieved preliminary sales (understood as the concluded preliminary sales agreements net) at the level of 95, which is 45% less than in the comparable period of the previous year covering July to September.

The decrease in the preliminary sales level against the comparable period was, in particular, influenced by a smaller number of flats for sale than last year, by the range of the offer, by placing further property development projects on the market being postponed, and by a high base effect. The third quarter of the last year was a record sales quarter over the last few years. For comparison, the decrease of the sales in the 3rd quarter 2016 in relation to a comparable quarter in 2014 is 11% (the Group recorded the same decrease in comparison to the 3rd quarter 2016 to 2013). At the beginning of the 3rd quarter 2016 INPRO S.A. offered 100 premises fewer than a year before. At the same time, the offer included a smaller number of popular flats and upper-end apartments in the price range from PLN 5,200 to 6,200/m2 than last year.

Work is under way related to the preparation of new projects and placing them on the market; the Company is waiting, among other things, for a decision on the building permit for the construction of the Azymut residential estate in Gdynia meeting the criteria of the upper-end segment.

At the same time, considering the observed demand on the property development market and the range of projects awaiting to be placed on the market, INPRO S.A. expects that the preliminary sales level will gradually increase in the months to come.

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 (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))