Request for payment

The Management Board of Polimex-Mostostal S.A. with the registered office in Warsaw at ul. Czackiego 15/17 (the “Company”) informs of the submission made by Doprastav a.s. dated on 31 January 2014 of two following requests for payment of contractual penalty:

1.     request for payment of a contractual penalty at the amount of PLN 176,954030.25 by the State Treasury - Generalny Dyrektor Dróg Krajowych i Autostrad (the General Directorate of National Roads and Motorways (“GDDKiA”) as the withdrawal from the contract dated 22 December 2010 referring to the project and construction of the A1 motorway Stryków - "Tuszyn" junction along the section from 295 + 850 km (from "Stryków I" junction without the junction) to 335 + 937.65 km by fault of the Generalna Dyrekcja Dróg Krajowych i Autostrad,

2.     request for payment of a contractual penalty at the amount of PLN 219,592,408.75 by the State Treasury - Generalny Dyrektor Dróg Krajowych i Autostrad as the withdrawal from the contract dated 23 September 2010 referring to construction of the A4 motorway Rzeszów (junction Rzeszów Wschód) - Jarosław (junction Wierzbna) from 581+250 km to 622+450 - by fault of the Generalna Dyrekcja Dróg Krajowych i Autostrad,

3.     request for payment at the amount of PLN 78,810,044.69 by the State Treasury - Generalny Dyrektor Dróg Krajowych i Autostrad as the withdrawal from the contract dated 20 July 2010 referring to the construction of the S69 Expressroad Bielsko-Biała – Żywiec – Zwardoń, junction along the section „Mikuszowice” („Żywiecka/Bystrzańska”) – Żywiec from 9 + 1000,00 km to 24 + 660 km by fault of the Generalna Dyrekcja Dróg Krajowych i Autostrad.

In addition, the Company informs of receiving by the Company on 31 January 2014 of a request from the Generalny Dyrektor Dróg Krajowych i Autostrad (GDDKiA) for payment of a contractual penalty at the amount of: PLN 221,381,096.20 as the withdrawal from the contract provided for in subparagraph 2 by GDDKiA. In the Company's assessment the request of GDDKiA for payment of the aforementioned amount is groundless due to the fact that the Party which effectively withdrew from the abovementioned contracts was the Consortium of companies, a part of which the Company was. Withdrawal by GDDKiA from the abovementioned contracts - as the later one towards statements of the Consortium of the companies - was not valid and therefore the request for payment of contractual penalty ought to be deemed groundless.

At the same time on 31 January 2014 Polimex-Mostostal S.A. as well as Doprastav a.s. returned accounting notes in the total amount of PLN 104,255,027.00 which were groundlessly issued by GDDKiA and referred to the contract provided for in subparagraph 3.