RB 63/2018

Date: 28 June 2018

Subject: Notification on the initiation of antimonopoly proceedings

Legal basis:Art. 17 item 1 of MAR – confidential information

The Management Board of Benefit Systems S.A. with its registered office in Warsaw (the “Company”, the “Issuer”) informs that on 28 June 2018 its subsidiary Fit Invest sp. z o.o. with its registered office in Warsaw („Fit Invest”) received a decision of the President of Office of Competition and Consumer Protection („the President of UOKiK”) on the initiation of antimonopoly proceedings (“Proceedings”) against, among others, Fit Invest and the Company regarding the violation of the prohibitions set out in art. 6 item 1 point 3 and 6 of the Act on Competition and Consumer Protection ("OKiKU") and art. 101 item 1 letter c and art. 101 item 1 of the Treaty on the Functioning of the European Union ("TFEU").

The proceedings were initiated in connection with the suspicion of making an agreement on dividing the fitness club market, suspicion of making arrangements for exclusivity with fitness clubs and suspicions of limiting the possibility of offering services as part of sport and recreational services packages. The proceedings were also initiated against entities other than the Company, including entities in which the Issuer, directly or indirectly, holds shares or stakes, also through Fit Invest.

According to art. 106 item 1 point 1 and 2 of OKiKU, the President of UOKiK may impose on a company who, even unintentionally, violated the prohibition specified in art. 6 of OKiKU, to the extent not excluded in art. 7 and art. 8 of OKiKU, or the prohibition of art. 101 of TFEU, a fine in the amount not exceeding 10% of revenue achieved in the financial year preceding the year of imposing the fine.

The Company does not agree with the allegations of the President of UOKiK and will express its standpoint in the case within the time frame set by the President of UOKiK.

The risk of transformation of explanatory actions previously conducted by the President of UOKiK into proceedings against the Company and the risk of imposing a fine were communicated by the Issuer in, among others, the Management Board's report on the Company's operations and the consolidated Management Board’s report on Benefit Systems capital group operations in 2017 financial year.