Conclusion of a package of factoring agreements with Bank Millenium S.A.

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego15/17, with reference to the current report no. 46/2011 published on 19 July 2011 informs that on 3 October 2011 it received a package of factoring agreements signed by Bank Millenium S.A. Among others, the agreements concluded include:

1)   an annex to the factoring agreement dated 18 July 2011 reducing the initial service limit from PLN 36,700,000.00 to the level of PLN 34,400,000.00 and extending the maximum clearing cycle regarding receivables not covered thereby from 30 September 2014 to 31 March 2015;

2)   an annex to the reverse factoring agreement with the limit set at the level of PLN 22,000,000.00 extending the maximum period to repay the Company’s liabilities from 180 to 225 days of the date of arising of the supplier’s receivables against the Company.

The Parties have agreed that the total exposure under the agreements provided for in subparagraphs 1 and 2 hereinabove may not exceed the amount of PLN 34,000,000.00.

3)   a new factoring agreement with a limit at the level of PLN 20,500,000.00to purchase receivables due to the Company from the Municipality of Cracow, with the maximum clearing cycle expiring on 31 May 2014.

Total, maximum limit of exposure under the factoring service, made available by Bank Millennium S.A. to Polimex-Mostostal S.A., currently amounts to PLN 281,200,000.00 and comprises a package of the foregoing agreements, the factoring agreement of which the Company informed in current report no. 80/2010 on 4 October 2010, and the factoring agreement of which the Company informed in current report no. 90/2010 on 25 November 2010.

Commissions and securities with respect to the factoring agreements have been agreed upon on arm’s length terms.