Conclusion of a partial contract between Izostal, S.A. and O.G.P. Gaz-System S.A. for the delivery of coated steel pipes DN 700.

Date  of issue: 2012-11-21
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Conclusion of a partial contract between Izostal, S.A. and O.G.P. Gaz-System S.A.  for the delivery of coated steel pipes DN 700.

CONTENT OF THE REPORT:
In connection to the current report no. 50/2012 of November 9, 2012, the Management Board of Izostal S.A.(Company, Contractor)informs that on November 21, 2012 Izostal S.A., as the consortium leader, was informed about the partial contract’s with Gas Transmission Operator Gaz-System S.A.(Customer) being signed by the other party. The partial contract will be executed within the scope of a framework agreement of which the Company informed in its current report no. 9/2011 of January 26, 2011.

The partial contract refers to the delivery of coated steel pipes DN700 for the investment project executed by the Customer: Szczecin – Lwowek gas pipeline, Phase 2: Gorzow Wielkopolski – Lwowek. Total net value of the Partial Contract is PLN 54.343.465,00, which is a gross value of PLN 66.842.461,95.Completion date of execution of the Partial Contract is from February 18, 2013 to August 31, 2013.

The maximum value of contractual penalties by the way of the execution of the Partial Contract mentioned above is limited up to 20% of the net renumaration specified in the Partial Contract. Detailed terms and conditions of the execution of the partial contract mentioned above, including the description of contractual penalties are specified in the Framework Contract, of which the Company informed in the current report no. 9/2011.

The Partial Contract meets the criterion of being a significant agreement as its value exceeds 10% of 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 2012-11-21
Management Board Vice President, Jacek Podwiński 2012-11-21
 
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