Statement by the Management Board of FITEN S.A.

Dear Customers, Shareholders and Partners, on 10 August this year. District Court Katowice-Wschód in Katowice decided to open sanitation proceedings against FITEN S.A. at the Company's motion filed on 29 July this year. The decision to launch the restructuring process was dictated by the need to protect the Company and its stakeholders in the face of cumulative effects of unforeseen events and their expected adverse impact on the Company's future financial condition.

The events mentioned include:
- PKP Energetyka S.A.'s unjustified and contractually incompatible termination of its cooperation with FITEN S.A. in December 2015.
- the realisation of a very large volume of electricity supplies, which is a legacy of the cooperation with PKP Energetyka S.A., considering the Company's financial capabilities.
- an unexpected and, in the Company's opinion, not market-justified increase in electricity prices on the wholesale market in the second half of June this year.

Bezprawne zerwanie przez PKP Energetyka S.A. umowy ze Spółką spowodowało konieczność samodzielnej realizacji zobowiązań wobec klientów końcowych. Zaistniała sytuacja w połączeniu z bardzo wysokim i niemającym uzasadnienia wzrostem cen energii na rynku hurtowym, przełożyła się na ujemny poziom pozycji wynikowych Spółki w II kw. 2016 r. oraz skłoniła zarząd do podjęcia uchwały w sprawie otwarcia postępowania restrukturyzacyjnego, ostatecznie uruchomionego przez Sąd 10 sierpnia 2016 r.

I would like to emphasise that the restructuring process that has been initiated is primarily intended to protect the interests of the Company, its Customers, Shareholders, Partners and all other stakeholder groups.

The main premise of the planned restructuring is the stable development of the Company's business, and the need for restructuring itself is due to events beyond our control and unforeseeable, as a result of which, without the initiation of protective proceedings, the threat of insolvency would be very likely.

We emphasise once again that the concluded contracts for the supply of energy and gas will be carried out without hindrance, and that our overriding objective remains the high level of satisfaction of our customers.

Pursuant to the Court's decision, the Company will continue to manage the entire enterprise, while a reputable and experienced entity, PMR Restrukturyzacje S.A., was appointed as the administrator in the sanitation proceedings. In my opinion and the opinion of the entire Management Board of the Company, the above decisions of the Court will contribute to the effective implementation of the restructuring.

In recent periods, FITEN S.A. has been successfully developing its activity in the field of energy sales to end customers, enjoying numerous business successes, which confirmed the Management Board's earlier assumptions and were also an expression of your confidence in our business. I am deeply convinced that the initiated sanitation process will allow us to stabilise FITEN S.A.'s condition and enable a quick return to the previously chosen development track.

Roman Plushchev - Chairman of the Board
Sebastian Woźniak - Member of the Management Board
Krzysztof Czajka - Member of the Management Board