Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and relevant legislation, Sava Re d.d., Ljubljana hereby announces the following:

Sava Reinsurance Company d.d. signed a contract to purchase 49% of the shares of Kosovan non-life insurer Dukagjini kompania e sigurimeve sh.a., a company already majority-owned by Sava Re. The fixed portion of the purchase price for the 49-percent share of EUR 8.5 million is scheduled to be settled at the beginning of 2011. In addition, the purchase price includes a variable portion dependent on the business results of the target company in 2010 and 2011, the total purchase price not exceeding EUR 9.5 million. The shares will be transferred to Sava Re already in 2010.

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