Pursuant to the Rules of the Ljubljana Stock Exchange d.d., Ljubljana and relevant legislation, Sava Reinsurance Company d.d., Dunajska 56, 1000 Ljubljana, hereby announces the following:

In accordance with Articles 106 and 386 of the Financial Instruments Market Act (Official Gazette of the Republic of Slovenia, no. 67/2007) relating to the publication of regulated information, Sava Reinsurance Company d.d. hereby announces that on 3 February 2010 the Board of Directors of the fund management company Sava Invest a.d. with registered office at Partizanski odredi 43b/1-03, Skopje, Macedonia, adopted the decision to voluntarily wind up the legal entity. This decision triggers proceedings for the liquidation of the investment funds Sava Invest Rasteči and Sava Invest Balansirajuči before the competent authorities in the Republic of Macedonia. The assets of the funds are, subsequent to settlement of any debts, distributed among investors in proportion to their investments.

Sava Invest a.d. is jointly owned by Sava Reinsurance Company d.d. and the insurer Sava Tabak a.d.o. based in Skopje, Macedonia, and is a subsidiary of the Sava Re Group. The global economic crisis with strong repercussions in stock markets impacted the results of the company. We believe that the investment will not yield satisfactory results in the short term, neither is the activity complementary to the Group's core business.

Over the past three years, we developed an insurance group with the long-term goal of providing the highest-quality insurance and financial services in its target markets. We wish to continue providing our clients with quality service and our shareholders with the planned returns; therefore, the Sava Re Group remains committed to tradition and to its primary activities, insurance and reinsurance.

The decision on the winding up of Sava Invest a.d. has no influence on the existence and operation of Sava Tabak a.d.o., the second largest general insurer in Macedonia with an 18% market share.
This announcement will also be available on the Company’s website at www.sava-re.si, at least five years from the date of the announcement.

The Management Board