BITTNET SYSTEMS S.A. (hereinafter referred to as “the Company”) informs the investors about signing of a factoring agreement with Banca Transilvania for discounting invoices with a customer from telecom industry. The contract has the following coordinates:

• Bank product type: non-recurring factoring ceiling for prepayment of receivables

• Maximum ceiling: RON 3,000,000

• Coverage percentage: 100% of the invoices value

• Interest rate: 1.5% + ROBOR1M per year, calculated at the value of the invoices

• Validity: 16 months with possibility of extension

The factoring agreement was signed by the Company in order to optimize the cash flow