Conclusion of a material contract

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 informs that on 10 November 2011 the Company and Helical Sośnica Sp. z o.o. concluded a contract for the ‘Construction of the Europa Centralna Shopping Centre in Gliwice’.

The total value of the contract which will have been executed by 15.10.2012 amounts to PLN 181,632,035.20 net (PLN 223,407,403.29 gross).

The Parties have agreed upon the following financial securities:                              

-    a performance bond in the amount constituting 12% of the net value of the Contract, i.e. PLN 21,795,844.22, valid until 15.12.2012,

-    a retention bond in the amount constituting 5% of the net value of the Contract, i.e. PLN 9,081,601.76, valid until the expiry date of the 10-year guarantee period.

Moreover, the Parties have agreed that in the event of a delay in the execution of the subject matter of the Contract the Contractor shall pay the Investor a contractual penalty in the amount of 0.1% of the net value of the Contract per each commenced day of delay. The limit of contractual indemnities shall not exceed 10% of the net value of the Contract.

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