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 today the Company has signed a contract with Polski Koncern Naftowy ORLEN S.A. with its registered office in Płock for the design, delivery and building in a turnkey system of a catalytic denitrification and exhaust gas dedusting installation in OOG-320 boilers Nos. 1, 2 and  3 as well as in OOG-420 boilers Nos. 4, 5,  6 and 7 of a heat and power plant in Polski Koncern Naftowy ORLEN S.A. factory.

The net remuneration for the execution of all the works, necessary for the performance of the contract, is 
PLN 379,032,024.66.

The Parties have established that the total value of contractual penalties paid by the Contractor to the Ordering Party for any reasons related to the upgraded boiler is limited to 30% of the net remuneration for the upgraded boiler, except for the first upgraded boiler, where the contractual penalty limit is 30% of the net remuneration for all the works, necessary for the performance of the contract.

Moreover, the Ordering Party reserves the right to seek supplementary damages covering the total amount of the damage on general terms, taking into account the limits stipulated in the contract.

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