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

Date of issue: 2011-09-21

Legal basis:  Art. 56 cl. 1 item 2  of the Public Offering Act - current and periodic information

SUBJECT:

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

CONTENT OF THE REPORT:
With reference to the current report no.  46/2011 of September 2, 2011, the Management Board of Izostal S.A. (Company) informs that on September 21, 2011 Izostal S.A. as the consortium leader (Contractor) concluded two partial contracts with Operator Gazociągów Przesyłowych GAZ‐SYSTEM S.A. (Customer) for the supply of coated steel pipes for investment projects executed by the Customer. Said partial contracts will be implemented within the concluded framework contract, about which the Company informed in the current report no. 9/2011 of January 26, 2011.  

The net value of the first partial contract for the supply of coated steel pipes for the pipeline Gustorzyn – Odolanów accepted for implementation by Izostal S.A. in favor of the Customer is PLN 46,883,512.20. The partial contract will be implemented in the period from February 28, 2012 to May 10, 2012.

The net value of the first partial contract for the supply of coated steel pipes for the pipeline Gustorzyn – Odolanów accepted for implementation by Izostal S.A. in favor of the Customer is PLN 41,574,138.21. The partial contract will be implemented in the period from November 7, 2011 to February 3, 2012.

Maximum contractual damages for implementation of a given partial contract are limited to 20% of net consideration specified in the partial contract.

Total value of aforesaid partial contracts is PLN 88,457,650.41 (net).

Specific conditions of aforesaid partial Contracts, including specification of contractual damages, were defined in the Framework Contract, about which the Company informed in the above-mentioned current report no.  9/2011.

Partial contracts meet the significant contract criterion, as the value of either of them exceeds 10% of Company's equity.

Specific legal basis: § 5 cl. 1 item 3 of the regulation of the Minister of Finance of February 19, 2009 on current and periodic information provided 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, General Director Marek Mazurek 2011-09-21
Management Board Vice President, Commercial Director Jacek Podwiński 2011-09-21

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