The Management Board of INTERSPORT Polska S.A. (“The Company”) with the seat in Cholerzyn, further to the current report No 36 dated 7 November 2016 Company on the change of the trading area due to the termination, by the owner of the building located in Dowborczyków and Kilińskiego streets in Lodz where the INTERSPORT store is located, of the lease agreement concluded with Alma Market S.A. in, informs of the resulting termination of the sub-lease agreement concluded between the Issuer and Alma Market S.A. (the “Lessor”) pursuant to art. 688 par. 2 of the Civil Code. Based on the information received on 21 December 2016 the leased premises was finally returned.

In connection with the aforesaid the Company has estimated the final cost incurred due to the premature expiry of the sub-lease agreement of the trading area located at No 122-128 Kilińskiego street leased from the Lessor.

The cost analysis conducted as at the date of the return of the whole premises shows that nondepreciated part of the tangible asset of the closed store amounts to PLN 1,139 thousand which will significantly decrease the annual financial result of the Company.

However, pursuant to the provisions of the sub-lease agreement the Company has the right to claim the actual and documented expenses incurred for the subject of the lease that are permanently linked with the same and left therein, decreased by the depreciation amount. In the sub-lease agreement the Parties fixed the upper amount of such settlements which will cover in full the non-depreciated part of the tangible asset of the closed store, indicated above.

Irrespective of the above, the Company wishes to indicate that the closure of the premises subleased from Alma Market S.A. will have a positive effect on the Company’s financial result in 2017 as the said store generated a significant loss.