Creating joint mortgages on real properties of the Company and its subsidiaries

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 (the “Company”) informs that in order to carry out the provisions of the Agreement of 24 July 2012 on refraining from enforcement of the Company’s liabilities, (“Agreement”) concluded between the Company and the following banks: Bank Polska Kasa Opieki S.A., Powszechna Kasa Oszczędności Bank Polski S.A., ING Bank Śląski S.A., Bank Ochrony Środowiska S.A., Kredyt Bank S.A., Bank Gospodarki Żywnościowej S.A., Bank Millennium S.A., Bank DnB Nord Polska S.A., Deutsche Bank S.A., BNP Paribas Bank Polska S.A., BRE Bank S.A., Raiffeisen Bank Polska S.A., Svenska Handelsbanken AB S.A. Branch in Poland, RBS Bank (Polska) S.A., Credit Agricole Corporate and Investment Bank S.A. Branch in Poland as well as the bondholders having bonds issued by the Company with the total nominal value of PLN 395 million, the Company and the following subsidiaries: Polimex-Development Kraków sp. z o.o., Polimex-Mostostal Development sp. z o.o. and BR DEVELOPMENT sp. z o.o. (jointly with the Company referred to as the ”Companies”) concluded on 10 August 2012 agreements on creating joint mortgages in order to secure liabilities due to:

a)    Credit Agricole Corporate and Investment Bank S.A. Branch in Poland (“Credit Agricole”) resulting from guarantee agreements and claims against the Company regarding the guarantees issued;

b)    each of the bondholders holding 10 bonds of the Company with a total nominal value of PLN 1 million (the “Bondholder”) resulting from the bonds held;

Joint mortgages have been created on the Company’s land properties, rights of perpetual usufruct of land (including ownership of buildings and equipment situated thereon) as well as on the interests in these rights, located in the following localities: Katowice, Kraków, Nowy Dwór Mazowiecki, Opole, Warszawa, Siadło Dolne, Bielkowo and Ustroń (jointly referred to as „Real Properties”). The total book value of the encumbered Real Properties amounts to PLN 253,7 million.

The total value of receivables of Credit Agricole and the Bondholder secured by mortgages amounts to PLN 64 million.

There are no connections between the Company and its Subsidiaries, their Managers and Supervisors and the Credit Agricole and the Bondholder, in favour of which the mortgage have been created as well as their Managers.

The basis for issuing the current report is the fact that assets for which the mortgages have been created constitue substantial assets (their value exceeds 10% of the Company’s equity capital) and the value of the mortgages created exceeds the equivalent of EUR 1 million converted according to the average exchange rate of the National Bank of Poland as of the day of creating mortgages.