IN RELATION TO THE INSOLVENCY OF "HIDROELECTRICA" Lawyer Duţescu asks for an investigation of a potential market abuse concerning the Proprietatea Fund

Law firm "Duţescu şi Asociaţii" has asked the CNVM to initiate an emergency probe of the potential market abuse committed in relation to the shares of the Proprietatea Fund, by people who had knowledge of that Hidroelectrica S.A. would file for insolvency on June 15th, 2006, according to a press release.

According to the legal dispositions in effect, any issuer admitted for trading on a regulated market is required to notify right away any information which might have a significant impact on the price of the securities it has issued, the press release states.

"As acknowledged by the issuer itself in the report published on June 18th, 2012, the insolvency of SC HIDROELECTRICA S.A. will lead to the re-evaluation of the 20% stake in Hidroelectrica S.A., < by booking a value of zero for the shares >, leading to a drop in the value of the net assets of the Proprietatea Fund ofby 3,288,710,000 lei".

"As a result, approximately 21% of the current net asset of the Proprietatea Fund will have a net value of zero if the filing for insolvency submitted by SC HIDROELECTRICA S.A. gets approved", the representatives of the law firm also say.

According to them, it is certain that the investors which bought shares in the Proprietatea Fund in the trading session of June 18th, should consider themselves harmed by the absence of the information about Hidroelectrica SA filing for insolvency".

Under these circumstances, the lawyers estimate that the CNVM should quickly initiate an investigation which would establish the moment when the representative of the Proprietatea Fund on the Board of Directors of Hidroelectrica S.A. knew about the decision to file the request for insolvency, as well as the reasons why the issuer of the Proprietatea Fund did not immediately publish the information about the insolvency, on June 15th, 2012, or at the latest before the opening of the trading session of June 18th, 2012, (information which was theoretically public anyway as the request for insolvency had been filed been registered with the Court of Bucharest on June 15th, 2012) .

The CNVM should also establish within the briefest delays whether the insider information concerning the filing for insolvency by Hidroelectrica S.A. was used or sent, or was the basis of any investment recommendation, before becoming public on June 18th, 2012, and to act, if needed, against the guilty individuals.