The Management Board of Mostostal Warszawa S.A. (“Company”) informs that today, the Company signed an agreement with Mennica Polska S.A. for performance of construction work as part of an investment task under the name: construction of a multi-family residential building with service functions and underground garage, area management, entry to the real property and the necessary technical infrastructure, including municipal transformer stations, located in the area of plots with Nos. 110/1, 110/3, 110/4 within area 6-01-06, constructions of exits on fragments of road lanes of ul. Pereca, plot No. 10/1 within area 6-01-06 and construction of the necessary technical infrastructure on plots with No. 6, 10/1 within area 6-01-06 at ul. Waliców 11 in Warsaw, along with disassembly of a part of the Aurum office building located on plot with No. 110/3 within area 6-01-06 at ul. Waliców 11 in Warsaw.

Completion deadline of the agreement: 31 May 2019.

The value of the agreement amounts to: PLN 103.150 million net + VAT.

Payment deadline: 30 days from invoice receipt.

Guarantee period:

- 6 years for the investment task in total, encompassing, in particular, construction work and additional work, including finishing work;

- a minimum of 24 months for equipment and machines or for a longer period of time resulting from a guarantee indicated by the manufacturer of the equipment.

Performance bond for the contract: bank performance bond for the total amount of 10% of the net contract value.

Starting from 2011 and 2012, Mostostal Warszawa S.A. (“Company”) recognized revenues on account of claims in financial statements. According to the status as of 31.12.206, they amounted to PLN 224 million. The chartered accountant challenged such statements by declaring that the recognition failed to fulfil IAS 11. In 2017, the Polish Financial Supervision Authority (“PFSA”) issued a recommendation on renewed audit of posted revenues on account of claims and on performance of adequate correction of financial statements.

In line with the recommendation of the PFSA and in compliance with the International Accounting Standards, the Management Board decided to audit all court and arbitration disputes in which the Company is a party. On 12.02.2018 the Management Board decided to correct the amounts previously recognized as revenue estimating that the correction would decrease equity by the amount of PLN 94.3 million.

The described correction is of accounting nature and has no impact on the Company’s financial liquidity or pending court disputes with respect to which Mostostal is expecting positive decisions.

In the financial statement for 2017, the Company recognized revenues on account of some claims processed in the accounting year, as well as other write-offs which will have a positive impact on the profit and loss account in the amount of PLN 11 million.

The Company stipulates that the amounts above are estimates only and may be changed in the course of an audit of financial statements by a chartered accountant. The final amounts will be presented in the Company's annual financial statement.