Conclusion of a material contract by a subsidiary company of the Issuer

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 informs that on 17 August 2011 a subsidiary company of the Issuer operating under the company name of TORPOL Sp. z o.o. with its registered office in Poznań, concluded a contract with Trakcja Tiltra S.A. with its registered office in Warsaw at ul. Złota 59.

The subject matter of the contract is designing and performing construction works on the Cracow – Medyka – state boundary railway line, along the Podłęże – Bochnia section within km 16.000 – 39.000 as part of the “Modernisation of the E30/C-E30 railway line Cracow-Rzeszów section, stage III” project.

Value of the contract amounts to: PLN 290,287,460.00 net (PLN 357,053,575.80 gross)

Works completion date: 31 December 2013

The defect warranty period amounts to 1 year.

The maximum value of contractual penalties amounts to 15% of the gross contract price, the Ordering Party may, however, seek compensation if the damage exceeds the aforementioned value of contractual penalties.

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 preceding the conclusion of the aforementioned contract, Torpol Sp. z o.o. concluded with Trakcja – Tiltra S.A. three contracts of the total net value of PLN 293,096,560.00. The aforementioned contract is the biggest one