Withdrawal from the contract by the Company

The Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 (“Company”) informs that on 20 September 2013 the Company withdrew from the contract for construction works consisting in carrying out two separate projects, that is “Lubelskie Conference Center” and “Building of the Office of the Marshal in Lublin” of 8 February 2012 (“Contract”).

The reason of the Company’s withdrawal is non-performance by the Management Board of Lubelskie Voivodeship (“Ordering Party”) any of the proceedings indicated in the letter of 5 September 2013 within the period set in that letter, that is, among others, (i) non-delivery of alternative projects of the detailed design of the construction of the building of the Office of the Marshal, (ii) non-delivery to the Company of the alternative projects within the scope of the detailed design of the construction of the building of Lubelskie Conference Center, (iii) not providing to the Company full access to the construction site, (iv) non-conclusion with the Company of the annex to the Contract that shall provide for, i.a., changing the period of the execution of the construction works.

The actions undertaken by the Company, and as a consequence the decision of withdrawal from the Contract, resulted from i.a. the expertise by Stalko Sp. z o. o. with its registered office in Gdańsk, commissioned by the Company, in accordance to which the further execution of the construction works based on the design documentation handed over by the Ordering Party could result in construction disaster.

After conducting legal screening, the Management Board informs that the representations on withdrawal from the Contract made by the Ordering Party, on which the Company informed in current reports (i) no. 121/2013 of 6 September 2013 and (iii) no. 124/2013 of 26 September 2013 were not successfully filed towards the Company, and did not result in withdrawal from the Contract of the Ordering Party.