Confidential information - breach of material Agreement

With reference to the current report no. 130/2012 of 21 December 2012 on the conclusion of Agreement specifying the terms and conditions of financing the Company by the creditors (hereinafter referred to as the ‘Agreement’), the Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw (hereinafter referred to as the ‘Company’) informs that in the light of the provisions of the Agreement as of 31 May 2013 there was a breach of the Agreement.

The breach of the Agreement consisted in failure to conclude by the Company in the period specified by the creditors being the Party to the Agreement (i.e. until 31 May 2013) annexes to selected construction contracts of the Company on conditions specified by the creditors being the Party to the Agreement.

The most significant result of occurrence of said breach is the likelihood of termination of the Agreement by the creditors, whose receivables constitute at least 66,6 and 2/3% of the total exposure of all the creditors being the party to this Agreement.

The Company is negotiating with the Ordering Parties being the Parties to the abovementioned contracts, however the negotiating positions of the particular Ordering Parties are currently diverge from the conditions required by the creditors being the Party to the Agreement. The Company informs that it has submitted to the financial creditors - arties to the Agreement - a petition for revocation of the breach of the Agreement described in this current report.