Receipt of a demand for payment under guarantees

The Management Board of Polimex-Mostostal S.A. (”Company”) hereby informs that on 24 July 2013 it was notified by BNP Paribas Bank Polska S.A. (”Bank”) of receipt by the Bank from a German company WTE Wassertechnik GmbH (”Beneficiary”) of a demand for payment of the amount of EUR 767,446.85 under a guarantee regarding performance of obligations issued by the Bank.
The said guarantee was issued upon the order of the Company in favour of the Beneficiary in relation to the performance of the contract regarding construction of a mechanical and biological wastewater treatment plant Pomorzany, inclusive of a deposit management system, for Zakład Wodociągów i Kanalizacji Sp. z o.o. of Szczecin. 
In the opinion of the Company, the Beneficiary has been abusing its rights under the issued unconditional bank guarantee. Should the undertaken mediations not result in abandonment of the claim, legal proceedings with respect to the matter shall be undertaken in accordance with the terms of the contract binding the Company and the Beneficiary.