Conclusion of a material contract

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 hereby informs that on 31 August 2012 r it signed a contract with Alstom Power Sp. z o.o. for “Design and delivery of two machinery islands together with supervision, installation and start-up works” for PGE Opole power units 5 and 6.

The remuneration for the performance of the subject matter of the Contract amounts to PLN 1,900,000,000.00 net.

The Parties agreed that the limit of the contractual penalties due to delays in the performance of the subject matter of the Contract and failure to fulfil the requirements regarding technical parameters amounts to 15% of the net contractual remuneration, whereas the total limit of contractual penalties has been set at the level of 25% of the net contractual remuneration.

The Contract has been concluded under the suspensive condition that is the approval by the Investor i.e. PGE Elektrownia Opole S.A. The performance of the subject matter of the Contract shall commence after issuing a Notice to Proceed by PGE Elektrownia Opole S.A., pursuant to the main contract with PGE.

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