Conclusion of a material contract by Subsidiary company.

With reference to the current report no. 23/2013 of 22.02.2013, the Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 informs, that today it obtained from the subsidiary company operating under the company name TORPOL S.A. an information on signing a contract by the Consortium of companies: Kapsch CarrierCom Sp. z o.o. (Consortium Leader) with its registered office in Warsaw, Kapsch CarrierCom AG (Consortium Partner) with its registered office in Vienna and TORPOL S.A. (Consortium Partner) with its registered office in Poznan;

for “design, construction and implementation of subsystem radio system ERTMS/GSM-R, design and construction of optical fibre track cables and construction of telecast systems as a part of the project POIiŚ 7.1-25 of “Construction of infrastructure system GSM-R in accordance with NPW ERTMS along the railway line E 20/C-E 20 tunnel F along the section Kunowice – Terespol” – partial bid A, C, D” with PKP Polskie Linie Kolejowe S.A. with its registered office in Warsaw.

The total price of the partial orders A, C and D for the entire consortium:

PLN 214,347,465,360 gross (PLN 174,266,232,000 net) including TORPOL S.A. share of 65%.

Execution period: for part C and D is 18 months, for part A is 26 months.

The period of reporting defects is 60 months.

The maximum amount of contractual penalties is 30% of the gross contract price.

The value of the POLIMEX-MOSTOSTAL S.A. equity capital has been assumed to be the criterion for considering the Contract to be material.