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

Date  of issue: 2012-05-11

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.

SUBJECT: Conclusion of Izostal S.A. of a partial contract for the delivery of coated steel pipes to O.G.P. Gaz-System S.A.

CONTENT OF THE REPORT:
Following the current report no. 20/2012 of April 23, 2012, the Management Board of Izostal S.A. (Company, Contractor) informs that on May 10, 2012 Izostal, as the consortium leader, concluded a partial contract with Operator Gazociągów Przesyłowych GAZ‐SYSTEM S.A. (Customer) for the delivery of coated steel pipes for the investment project of the Customer - Szczecin – Gdańsk pipeline: Stage II Karlino – Koszalin, Stage III Koszalin – Słupsk. Said partial contract will be a part of the framework contract of which the Company informed in its current report no. 9/2011. of January 26, 2011. 

Total net value of the Contract is PLN 46,764,461.24, which is PLN 57,520,287.32 gross. The partial contract will be realized from August 1, 2012 to December 31, 2012.

The maximum value of contractual damages under the partial contract is limited up to 20% of the net consideration specified in the partial contract.

The detailed terms and conditions of the said partial contract, including the description of contractual damages, are specified in the Framework Contract, of which the Company informed in the current  report no. 9/2011.

The partial contract meets the condition of a significant agreement 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 2012-05-11
Proxy, Michał Pietrek 2012-05-11

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