Confidential information - breach of material Agreement

With reference to current report no. 130/2012 of 21 December 2012 on the conclusion by and between Polimex-Mostostal S.A. (hereinafter referred to as the ‘Company’) and banks and bondholders (hereinafter referred to as the ‘Creditors’) of an agreement specifying terms and conditions of financing the Company by the Creditors (hereinafter referred to as the ‘Agreement’), the Management Board of Polimex-Mostostal S.A. with the registered office in Warsaw (hereinafter referred to as the ‘Company’) informs that on 28 June 2013 the Agreement was breached.

 The said breach involved default of payment by the Company to the Creditors being a party to the Agreement of total interest on: (i) credits covered by the Agreement, (ii) receivables of bondholders covered by the Agreement (which were not subject to conversion into the Company’s share capital) and (iii) recourse claims due to the guarantees issued by the banks being a party to the Agreement which accrued during the period from the day of concluding the Agreement to 28 June 2013. Pursuant to the Agreement, the Company was obliged to pay the aforementioned interest to the Creditors on 28 June 2013.

 The most significant result of the occurrence of the said breach is the likelihood of termination of the Agreement by each Creditor.

 The Company informs that it is in the course of signing with the Creditors of an annex to the Agreement, the aim of which is, among others, the Creditors’ consent to spread payment of interest referred to in this current report into monthly instalments. As of the day of the publication of this current report, the annex to the Agreement was signed by the Company and its subsidiary companies being a party to the Agreement as well as 30 out of 31 Creditors, with the proviso that the signature of one of the creditors enters into force on 1 July 2013. The annex will enter into force on condition that it is signed by all the Creditors being a party to the Agreement until 1 July 2013.