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.

The Management Board of Mostostal Warszawa S.A. ("Company", "Defendant"), reports that it received, from District Court in Białystok, 1st Civil Division, a petition filed by the University in Białystok represented by the General Attorney of the Republic of Poland (“Petitioner”) against Mostostal Warszawa S.A.

The Petitioner demands the amount of PLN 204.1 million along with statutory interest for delay from 12 January 2018 until the date of payment, awarded from Mostostal Warszawa S.A. for the benefit of the University in Białystok.

The Petitioner demands payment of the amount due as contractual penalty for delays in removal, by the Defendant, of defects with respect to the agreements implemented for the benefit of the University of Białystok “Construction of Institute of Biology and Faculty of Mathematics and IT Together with University Computing Centre” and “Construction of the Faculty of Physics and Institute of Chemistry.”

The Company informed about the conclusion of agreements in question in current report No. 4/2011 of 26 January 2011. The total value of contracts amounted to PLN 168.72 million gross.

The Company, having analysed the content of the petition, fully refutes the validity of claims filed by the Petitioner.