Conclusion with Bank PEKAO S.A. of a credit agreement and an annex to the agreement establishing general terms and conditions of credit facilities

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 informs that on 28 July 2011 it obtained, as signed by Bank PEKAO S.A., a multi-purpose, multi-currency credit facility agreement and an annex to the agreement establishing general terms and conditions of credit facilities.

Under the foregoing Agreement Polimex-Mostostal S.A. will utilise a credit limit in the amount of PLN 420,000,000.00. The credit will be made available in the form of:

-        an operating credit up to the amount of PLN 200,000,000.00 (including: PLN 50,000,000.00 of overdraft for working capital, PLN 150,000,000.00 of revolving credit in tranches to finance the contracts being executed),

-        bank guarantees granted by the Bank up to the total amount of PLN 250,000,000.00, subject to the fact that utilisation of PLN 250,000,000.00 shall depend on reducing utilisation of the operating credit by PLN 30,000,000.00.

The credit has been granted until 31 July 2012. The order to grant the guarantees within the limit may be placed by 31 July 2012, subject to the guarantee maximum period of validity amounting to 10 years and that the guarantees may not be valid beyond 31 July 2022.

The Agreement governs the terms and conditions of cooperation between the Company and Bank PEKAO S.A., and supersedes the currently valid agreements listed below and regarding:

1)   overdraft for working capital no. 2008/359/DDF dated 10 October 2008 as amended, with the limit of PLN 50,000,000.00, valid until 31 July 2011,

2)   multi-currency credit facility no. 2008/360/DDF dated 10 October 2008 as amended, with the limit of PLN 70,000,000.00, valid until 31 July 2011,

3)   overdraft for working capital no. 12/2009/IIMCK dated 30 December 2009 as amended, with the limit of PLN 5,000,000.00 (agreement with incorporated ZRE Kraków Sp. z o.o.),

4)   general agreement establishing terms and conditions of cooperation within the scope of credit guarantee line with no. 2009/521/DDF dated 1 December 2009 as amended, with the limit of PLN 100,000,000.00 (including credit debt limit  of up to PLN 50,000,000.00, valid until 31 July 2011, maximum period of validity of guarantees issued under the agreement until 31 July 2016),

5)   capital no. 2010/300/DDF dated 28 June 2010 as amended, with the limit of PLN 50,000,000.00, valid until 27 July 2011,

6)   general bank guarantee agreement no. 3016/2004 dated 26 February 2004,

7)   general bank guarantee agreement no. 2008/361/DDF dated 10 October 2008 as amended, with the limit of PLN 118,500,000.00, with orders to be placed until 31 July 2011,

8)   general bid guarantee agreement no. 2010/87/DDF dated 29 March 2010 as amended, with the limit of PLN 30,000,000.00, with orders to be placed until 31 July 2011,

Part of the securities of the foregoing Agreement has been renegotiated and the amount of commission and charges has been agreed upon on market terms.

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