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 Dalma d.d. was originally established as a trading company. However, with the expansion of the City of Split it re-oriented its business from trading to tourism. Its business is implemented through two tourist facilities: the Dalmina Hotel in Split and the Brzet Hotel in the neighbouring town, Omiš. As part of the Company there are two other companies: Dalma Transport and Cargo Terminal.

The Company owns a 26,000 m2 business complex where it plans to build a new hotel (the Dalma – Maritime Project). It should become an independent profit-generating entity. The new hotel should have 172 accommodation units furnished to obtain four-star category and it should employ approximately 100 employees.

Dalma’s guests are predominantly from abroad and they accounted for more than 80% of all guests in the last three years.

SALEShares on sale: 1,046,303 (84.30% of share capital)

Average price on stock market: listed company but without trading history

FINANCIAL DATA, in EUR

Year 2009 2010

Operating revenues 2,012,933 1,851,600

Operating expenses 3,223,200 4,664,533

EBIT (1,210,267) (2,812,933)

EBITDA (842,533) (2,529,200)

Net income (1,583,733) (3,483,867)

Total assets 27,486,000 27,074,667

Total liabilities 9,242,000 12,409,067

Company name: Dalma d.d.

Address: 21000 Split, Kopilica 5

Web site: www.hoteldalmina.hr, www.brzet.hr

Dalma d.d., Split

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 PORTFOLIOThe total accommodation capacity is 306 beds distributed between the hotels Dalmina and Brzet.

Hotels:

• Dalmina (****); a new hotel in the City of Split with 52 accom-modation units, a cocktail bar and congress facilities; especially created to meet the needs of business people,

• Brzet (***); the pavilion-like hotel close to Omiš with 88 accommo-dation units, consisting of three 2-level pavilions with total facility area of 2,606 m2 and net land area of 17,363 m2.

Convention centre:

• There are congress facilities in hotel Dalmina (166 m2) with a meet-ing room and a conference/banquet hall accommodating up to 200 people.

Additional facilities:

• The Kopilica Complex with a total area of approximately 26,000 m2 with approximately 24,000 m2 gross construction capacity,

• 12 smaller offices on the outskirts of Split.

SPLIT-DALMATIA COUNTY INFORMATION

Population: 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