Conclusion by Izostal S.A. of partial contracts for the delivery of coated steel pipes to OGP Gaz-System S.A.

Date  of issue: 2012-06-22
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Conclusion by Izostal S.A. of partial contracts for the delivery of coated steel pipes to OGP Gaz-System S.A.

CONTENT OF THE REPORT:
Following the current report no. 28/2012 of May 23, 2012, the Management Board of Izostal S.A. (Company, Contractor) informs that on June 22, 2012 Izostal, as the consortium leader, was informed about the partial contract’s with Operator Gazociągów Przesyłowych GAZ‐SYSTEM S.A. (Customer) being signed by the other party. Said partial contracts will be a part of the framework contract of which the Company informed in its current report no. 9/2011 of January 26, 2011.

The first contract refers to the delivery of coated steel pipes for the purposes of the Customer’s investment project:  Gustorzyn-Odolanów pipeline. Total net value of the contract is PLN 29,422,123.17, which is PLN 36,189,211.50 gross. The partial contract will be realized from August 1, 2012 to October 31, 2012.

The second contract refers to the delivery of coated steel pipes for the purposes of the Customer’s investment project:  Szczecin-Gdańsk gas pipeline, Stage I Płoty - Karlino. Total net value of the contract is PLN 12,449,584.23, which is PLN 15,312,988.60 gross. The partial contract will be realized from August 1, 2012 to October 31, 2012.

The maximum value of liquidated damages under the partial contract is capped at 20% of net consideration specified in the partial contract.

The detailed terms and conditions of the partial contracts, including the description of liquidated damages, are specified in the Framework Contract, of which the Company informed in the current  report no. 9/2011. The partial contract is considered a significant contract as its value exceeds 10% of Company’s equity.
 
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 2012-06-22
Management Board Vice President, Jacek Podwiński 2012-06-22
 
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: 47-120 Zawadzkie Polna 3
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