Conclusion of a significant contract with Salzgitter Mannesmann Grossrohr GmbH.

Date  of issue: 2012-07-25

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Conclusion of a significant contract with Salzgitter Mannesmann Grossrohr GmbH.

CONTENT OF THE REPORT:
The Management Board of Izostal S.A. (Company) informs that on July 25, 2012 Izostal S.A. concluded a pipes purchase transaction with Salzgitter Mannesmann Grossrohr GmbH seated in Germany.

The highest value contract is the one concluded on July 25, 2012 between Izostal S.A. (Buyer) and Salzgitter Mannesmann Grossrohr GmbH (Seller) for the delivery of steel pipes. The value of this contract is EUR 4,429,254.50 which converted to PLN according to the mean interest rate announced by the National Bank of Poland as on the day of concluding the contract is PLN 18,607,741.08 (net). The partial contract will be realized from August 29, 2012 to October 31, 2012.

The contract provides for liquidated damages for delay in the delivery of pipes in the amount of 0.5% of undelivered batch’s value for each week of delay.

The maximum value of contractual damages under the partial contract is capped at 5% of the value of an undelivered batch of pipes.

The other conditions of the transaction do not differ from the conditions applied commonly for such contracts.

For the Company this contract is a significant one as it exceeds 10% of equity of Izostal S.A.

A total value of the contracts concluded by Izostal S.A. with Salzgitter Mannesmann Grossrohr GmbH over last 12 months has amounted to PLN 28,472,008.51.
 
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 2012-07-25
Management Board Vice President, Jacek Podwiński 2012-07-25
 
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