Regarding penalty to board member Linas Strelis and his resignation

AUGA group AB (Company) was informed that the Bank of Lithuania imposed EUR 200,000 fine on the Company’s board member Linas Strelis. According to the Supervisory division of the Bank of Lithuania, the fine was imposed on Strelis because he allegedly has entered into transactions for the acquisition and sale of shares of AB „Žemaitijos pienas“ in possession of and using inside information, and encouraged his family members to do the same; as a result, he has breached the prohibition of insider trading established by Regulation of the European Parliament and of the Council on market abuse.

The fine imposed on the board member is not related to the activities of the Company and/or its financial instruments (securities).

Board member Linas Strelis informed the Company, that he does not agree with the decision of the Bank of Lithuania, deems it ungrounded and illegal and considers appealing against it in court. On 23 May 2019 Linas Strelis, taking into account the Company’s interests, delivered to the Company a notice of resignation from the position of a board member effective immediately, which was accepted by the Company. Linas Strelis seized to be a board member with effect from 23 May 2019.

Given that upon resignation of Linas Strelis the board is not in full composition, the Company shall convene an extraordinary shareholders’ meeting for election of the new member to take the open position. There shall be a separate announcement made on convocation of the meeting.

Chief Financial Officer

Martynas Repecka