Concluding a significant agreement with Salzgitter Mannesmann Grossrohr GmbH.

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Concluding a significant agreement with Salzgitter Mannesmann Grossrohr GmbH.
 
CONTENT OF THE REPORT:
The Management of Izostal S.A. (the Company) informs that on February 22, 2016 it concluded subsequent contracts with Salzgitter Mannesmann Grossrohr GmbH seated in Salzgitter in Germany.

As a result of the transaction, total value of sales and purchase contracts concluded by the Company with Salzgitter Mannesmann Grossrohr GmbH and entities from Salzgitter Group since November 25, 2015 (current report no. 22/2015) exceeded 10% of equity of the Company and equaled PLN 26.259 thousand (net).

Within the covered period the highest value contract is the transaction concluded on February 22, 2016 of purchasing by Izostal S.A. (the Buyer) from Salzgitter Mannesmann Grossrohr GmbH (the Seller) of spiral-welded steel pipes DN 1000, with a total value of EUR 4.636 thousand (net), which after conversion by applying an average exchange rate of the National Bank of Poland as at the date of signing of the contract amounts to PLN 20.321 thousand (net).

According to contractual stipulations, the subject of the order will be delivered by the Seller until May 18, 2016.
 
In the case of delay in delivery, the buyer has the right to demand compensation in the amount of 0.3% of the value of the delayed batch of pipes for each calendar day of delay. The maximum value of the penalty payment for any delays in delivery shall be limited to 10% of the contract net value. The other conditions of the contract do not differ from the conditions applied commonly for such contracts.

The transactions concluded with Salzgitter Mannesmann Grossrohr GmbH and entities from Salzgitter Group in the above-mentioned period meet the criteria of a significant agreement due to the fact that their total value exceeds 10% of the value of the Company’s equity capital.

Specific legal basis: §5 clause 1 item 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, Marek Mazurek 2016-02-22
Proxy, Mariusz Spałek 2016-02-22
 
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-113 Kolonowskie Opolska 29
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678