Agency for Investments and Competitiveness, Ulica grada Vukovara 78, 10 000 Zagreb, CroatiaDISCLAIMER: Information contained in this document has been provided by Agency for Investments and Competitiveness of the Republic of Croatia. Purpose of this document is to give short information

about companies and/or investment possibilities to potential investors.The profile is for information purposes only. No responsibility or liability is accepted for the information in this document.

TRANSACTIONRepublic of Croatia through the Agency for State Property Management (AUDIO) has the goal to finish the privatisation process of its tourism portfolio (hotel companies owned and partially-owned by the Republic of Croatia).

Sales model: shares will be sold through a public tender. Public tendering will consist of two steps:

• step 1 – stating the interest to invest in a formal letter of intent to buty shares,

• step 2 – bid invitation will be sent to companies/individuals that expressed interest in buying shares.

Objective:

To expand current business activities by investing in modernisation of existing facilities and construction of new facilities and amenities, raising service quality and introducing modern destination management practices.

COMPANY Hoteli Živogošće d.d. was established in 1975, and its core businesses are hospitality and accommodation services offered in its two hotels and an auto camp. It has strong business relations with foreign tour operators. Approximately 95% of arrivals in the last three years originated from international markets.

The Company’s facilities have excellent waterfront positions and are located near the City of Makarska, a famous tourist brand in Croatia and in close proximity to several attractive tourist destinations (Split and Medjugorje, and islands of Brač and Hvar).

The competitive advantages of Hoteli Živogošće are quiet locations ideal for family holidays (Živogošće and Igrane), beautiful beaches and easy accessibility (Zagreb-Split Highway and Split International Airport). There is a great potential for organizing cultural, sport and sightseeing excursions, while the vicinity of the mountain Biokovo offers a number of hiking, walking and cycling paths.

SALEShares on sale: 227,697 (75.21% of share capital)

Average price on stock market: 3.93 EUR (09.05.2012)

FINANCIAL DATA, in EUR

Year 2009 2010 2011

Operating revenues 4,232,000 3,503,733 4,081,333

Operating expenses 4,455,467 3,631,333 4,677,600

EBIT (223,467) (127,600) (596,267)

EBITDA 458,267 551,600 598,933

Net Income (436,400) (398,800) (591,600)

Total assets 14,116,800 34,196,800 32,994,667

Total liabilities 17,640,667 21,461,067 20,850,800

Number of employees 126 91 94

Company name: Hoteli Živogošće d.d.

Address: 21329 Živogošće, Porat 136

Web site: www.hoteli-zivogosce.hr

Hoteli Živogošće d.d., Živogošće

Agency for Investments and Competitiveness, Ulica grada Vukovara 78, 10 000 Zagreb, CroatiaDISCLAIMER: Information contained in this document has been provided by Agency for Investments and Competitiveness of the Republic of Croatia. Purpose of this document is to give short information

about companies and/or investment possibilities to potential investors.The profile is for information purposes only. No responsibility or liability is accepted for the information in this document.

REAL ESTATE PORTFOLIO

Hotels:

• Hotel Nimfa (***): 10 levels, 288 accommodation units, consisting of the main building (hotel) and four annexes, size 12,971 m2. The hotel is located in Živogošće and was built in 1971 and renovated in 2003,

• Hotel Punta (**): 4 levels, 166 accommodation units, consisting of the hotel building and 14 bungalows with 34 apartments, size 8,991 m2. The hotel is located in Igrane; its first structures were built in 1967 while new buildings were added in 1984.

Auto camps:

• Auto camp Dole with 500 camping slots.

Sports and recreation facilities:

• Two outdoor swimming pools, tennis courts, table tennis, sport boules court and mini golf.

Area:

• Total facility area: 21,962 m2,

• Net land area: 34,932 m2,

• Land area available for further construction: 4,000 m2 next to Hotel Nimfa (allowed onstruction density: 0.80, allowed construction efficiency: 0.60).

SPLIT-DALMATIA COUNTY INFORMATIONPopulation: 455,242

GDP per capita: 7,952 EUR

Unemployment rate: 24.0%

Average gross monthly salary: 961 EUR

Average gross salary in the sector (tourism): 878 EUR

The Split-Dalmatia County encompasses the territory of the historical region of Dalmatia, and is easily accessible via Highway Zagreb-Split and Split International Airport.

The most important economic activity is tourism. There is a total of 117 hotels (2 five-star and 39 four-star hotels, while the remaining 76 are three- or two-star). In addition to hotels, accommodation is provided in apart-hotels, tourist resorts, tour-ist apartments and auto camps. The overall accommodation capacity provided is approximately 13,000 beds. There are 10 marinas (4 on the islands and 6 on the mainland) with a total of 1,814 berths.

The present international hotel chains in Split include Le Meridien Lav and Hotel Hilton Marjan which is planned for opening.

The County’s tourist potential includes: a rich heritage and cultural offer, catholic pilgrimage destinations, active and sport holidays and health tourism. There are UNESCO heritage sites in Split (Diocletian Palace) and Trogir; catholic pilgrimage destinations (Sinj, Vepric and vicinity to famous Medjugorje); rafting on the River Cetina in Omiš area and hiking, walking and cycling paths on mountains Marjan and Biokovo.

A large number of high schools offer education in the hospitality and catering sector, while the Split University provides undergraduate and graduate programs in tourism.

PRIVATISATION PROCEDUREAfter submitting a formal letter of intent, receiving a bid invitation and signing the NDA the potential investor could participate in due diligence procedure.

Upon bid submission the best bidder will be selected based on tender criteria.

CONTACTS:

Agency for Investments and Competitiveness (AIK), www.aik-invest.hr, e-mail: info@aik-invest.hr

Agency for State Property Management (AUDIO), www.audio.hr, e-mail: info@audio.hr