Refusal to pay funds from the guarantee issued to GDDKiA

With reference to the current report no. 20/2014 dated 04.02.2014 on receipt by Polimex-Mostostal SA ("the Company") from Bank Pekao SA ("the Guarantor") of the information on receipt by the Guarantor from the State Treasury - Generalny Dyrektor Dróg Krajowych i Autrostrad (the General Director of National Roads and Motorways; "the Beneficiary") of a demand for payment of the amount of PLN 55,996,064.23 due to the bank performance bond and the quality guarantee of 17.09.2010 issued in relation to performance by the consortium of companies Polimex-Mostostal SA, Doprastava.s of the contract for the construction of a section of the A4 motorway Rzeszów (Rzeszów-Wschód junction) - Jarosław (Wierzbna junction) from 581 + 250 km to 622 + 450 km, the Management Board of the Company informs that on 12 February 2014 it was informed by the Guarantor that it had made a decision to refuse to pay funds from the guarantee, of which the Beneficiary was informed in letter dated 10 February 2014. The Company was not provided with reasons of the refusal.