Confidential information - breach of material Agreement

With reference to the current report no. 130/2012 dated 21 December 2012 on conclusion by Polimex-Mostostal S.A. (hereinafter referred to as the “Company”) with banks and bondholders (hereinafter referred to as the “Creditors”) of agreement specifying the terms and conditions of financing the Company by the Creditors (hereinafter referred to as the “Agreement”), the Management Board informs that as of the end of 28 February 2014 occurred the breaches of the Agreement.

Breaches of the Agreement consisted in:

(i)             failure to obtain until 28 February 2014 a cash inflow in the amount specified by the Agreement under the sale process of the real estate and the stock in the subsidiay companies;

(ii)           lack of full implementation until 28 February 2014 of a system and key procedures of the internal audit, risk management, cost estimation and bidding.

The most significant result of occurrence of said breaches of the Agreement is the likelihood of termination of the Agreement by the Majority Creditors. The Company has applied to the Creditors for revocation of the abovementioned breaches simultaneously indicating the new dates for performance of the abovementioned obligations.