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 21 October 2011 the Company signed with Halla Engineering & Construction Corporation Branch in Poland a contract for the “Construction of the Manufacturing Plant for Automotive Parts in Wałbrzych”.

The total value of the contract, which will be executed within the period from 21.10.2011 to 15.08.2012 amounts to PLN 87,200,000.00 net (PLN 107,256,000.00 gross).

The Parties have agreed to the following financial securities:

- advance payment in the amount of 9% of the contract net value, i.e. PLN 7,848,000.00, within 7 days from the date of submission of the advance payment bank guarantee;

- contract performance bond in the amount constituting 12% of the contract net value, i.e. PLN 10,464,000.00, valid until 29.08.2012;

- retention bond in the amount of 3% of the contract net value, i.e. PLN 2,616,000.00, valid during the guarantee period: 10 years - roof, steel structure, 3 years - the remaining works.

Furthermore, the Parties have agreed that in the case of delay in the performance of the subject matter of the contract, the Contractor shall pay the Ordering Party the contractual penalty in the amount of 0.10% of the contract net value for each day of delay, counting from 31.08.2012. The total value of contractual penalties shall not exceed the amount of 10% of the contract net value.

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