DIA Distribuidora Internacional de Alimentacion : Board of Directors announcement

Distribuidora Internacional de Alimentación, S.A. ("DIA" or the "Company"), in accordance with Articles 228 of the consolidated wording of the Securities Markets Law and 17 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, hereby announces the following

RELEVANT FACT

The Board of Directors of the Company has adopted, in today's meeting, among others, the following resolutions:

• I. In accordance with the resolution already announced by Ms Ana María Llopis in the last General Shareholders Meeting, the Board has accepted her resignation as Chairwoman of the Company with effect as of today. Ms Llopis will continue performing her duties as member of the Board until 31 December 2018.

• II. Appoint Mr Stephan DuCharme as First Vice-Chairman of the Board of Directors, thus becoming Mr Richard Golding and Mr Mariano Martín Second and Third Vice-Chairmans, respectively. Upon the resignation of the Chairwoman, Mr DuCharme will provisionally replace her in her duties until the appointment of a new Chairperson.

• III. At the proposal of the shareholder LetterOne Investment Holdings, to appoint Mr Sergio Ferreira Dias as board member on an interim basis (cooptación) (with the status of External Proprietary Director) to cover an already existing vacancy. The appointment of Mr Dias as director of the Company will be submitted for approval at the next General Shareholders' Meeting of the Company. It has also been approved to appoint him as a member of the Audit and Compliance Committee replacing Mr Stephan DuCharme, who has resigned from that position.

In addition, the Board has resolved to announce that, following a review process of the 2018 full year estimates, the Company reduces its estimated results for the current year.

In light of a decline in sales volume, which has also impacted gross margin, and an increase in operating expenses, the Company estimates that the 2018 adjusted EBITDA forecast will be in a range of EUR 350 and 400 million, compared to EUR 568 million in 2017.

The above estimates do not include the impact which might arise from the imminent application of IAS 29 financial reporting in hyperinflationary economies, which application will be mandatory for the Company and its group as of the third quarter of 2018 due to its activity in Argentina. On the occasion of disclosure of the third quarter 2018 results, the Company will provide full information on such impact.

On another score, as a result of the abovementioned review process, the Company considers that certain adjustments should be incorporated to the 2017 consolidated financial statements. Such adjustments may have an estimated negative impact on equity of approximately EUR 70 million. Once the validation and confirmation process of such figures is finalized, the Company will proceed, in the drafting of the 2018 annual financial statements, to restate 2017 figures, which are presented for comparative purposes.

In light of the above, the Board has resolved to put on hold the dividend distribution policy

for next year 2019.

The Company will shortly announce the changes to be carried on at the Group financial department.

In Madrid, 15 October 2018

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACIÓN, S.A.

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Mr Miguel Ángel Iglesias Peinado Vice-Secretary of the Board of Directors