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Current report no. 34/2014

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 on 24 February 2014 it obtained the information about a breach of the Agreement. The breach of the Agreement consisted in receipt of the demand by the Company for payment of the amount EUR 2,179,559.17 under the aval of the Company granted to Intesa Sanpaolo Bank Romania (“Bank”) for the liabilities of the subsidiary company - S.C. Coifer Impex SRL resulting from the investment credit granted to this subsidiary company by the Bank. The most significant result of occurrence of said breach 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 breach. The Company has entered into negotiations with the Bank in order to agree on the acceptable debt repayment schedule.