Conclusion of a material contract

The Management Board of Polimex-Mostostal S.A. (herein after referred as to the “Company”) with its registered office in Warsaw at ul. Czackiego 15/17 hereby informs that on 5 February 2013 a Subsidiary Company TORPOL S.A. concluded with Towarzystwo Ubezpieczeń i Reasekuracji „WARTA” S.A. a Machinery & Equipment All Risk Insurance Agreement.

Parties to the Agreement:

Insurer: Towarzystwo Ubezpieczeń i Reasekuracji „WARTA” S.A with its registered office in Warsaw;

The Insuring Party: TORPOL S.A., with its registered office in Poznań,

Insured:  Millennium Leasing Sp. z o.o. (the Lessor) the registered office in Warsaw

The subject matter of the agreement is the all risk insurance of the machinery: tamping machine for tracks type 09-32 CSM and profiling machine for tracks type SSP110 SW.

Terms and conditions of the Agreement:

Insurance sum: PLN 6,584,287.50

Insurance period: 10.02.2013 - 09.02.2014,

The insurance premium was determined upon the market terms;

The value of the Issuer's equity capital has been assumed to be the criterion for considering the Agreement to be material.

Within 12 months TORPOL S.A. has concluded with the abovementioned Insurer several dozen of Agreements of the total value amounting PLN 66,253,901.11.