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4 January 2007

Sava Re announces acquisition of majority stake in Tabak

Tomorrow Sava Re will be the owner of 7.972 shares of the Macedonian insurer Tabak, corresponding to 53,65 percent of Tabak’s capital stock at the price of MKD 404.332.881 (EUR 6,6 million). The order for this transaction was placed after Sava Re obtained permission for the acquisition of this shareholding from the Macedonian Ministry of Finance. On completion of this transaction, the Sava Re Group will be larger by one more subsidiary, after in October, Sava Re took over of the Serbian insurer Polis (99,71 percent stake) and the Kosovo insurer Dukagjini (51 percent stake). The remaining Group members are Tilia (99,9 percent) and Maribor (45,63 percent).

Tabak is a non-life insurer based in Skopje. The Company has branches in all major towns in Macedonia. The insurer Tabak is, according to 2005 data, the third largest insurer in the Macedonian market (consisting of 10 insurers) with a market share of 16.1 percent. Compared to other insurers in the region it has a relatively low portion of motor policies. In 2005 Tabak generated a profit of EUR 330,000, while premium income increased 10 percent. For 2006 a premium growth of 5 percent is planned.

After the takeover, Sava Re will propose a Shareholders’ Meeting in which new members of the Management Board will be appointed.

POZAVAROVALNICA SAVA d.d.

Sava Re