Correction of financial results forecasts of Izostal S.A. for 2011.

Date of issue: 2011-12-09

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

SUBJECT:
Correction of financial results forecasts of Izostal S.A. for 2011.

CONTENT OF THE REPORT:
The Management Board of Izostal S.A. (Company), having analyzed the potential financial result attainable in 2011 corrects the Company results' forecasts for 2011 published in the Company Prospectus approved by the Financial Supervision Authority on December 8, 2010.

• Sales revenues before the correction - PLN 193,028 thousand; after the correction - PLN 252,980 thousand
  • Dynamics: before the correction - 157.6%; after the correction - 182.9%

• Operating costs (costs of products, goods and materials sold, costs of sale and overheads): before the correction - PLN 166,675 thousand; after the correction - PLN 227,503 thousand
  • Dynamics: before the correction - 149.3%; after the correction - 177.0%
• Gross sales profit: before the correction - PLN 38,215 thousand; after the correction - PLN 38,230 thousand
• Depreciation and amortization: before the correction - PLN 3,540 thousand; after the correction - PLN 3,556 thousand
• EBITDA: before the correction - PLN 30,467 thousand; after the correction - PLN 30,028 thousand
• Operating profit: before the correction - PLN 26,927 thousand; after the correction - PLN 26,472 thousand
• Net profit: before the correction - PLN 19,003 thousand; after the correction - PLN 19,044 thousand
  • Dynamics: before the correction - 269.7%; after the correction - 256.0%

The above-mentioned dynamics refers to the comparison against 2010 results.

The analysis of the Company's order book for 2011 makes it possible to assume that some values will differ from the items included in the recent forecasts announced to the public by more than 10%.   

Increase in the sales revenues was influenced by increased goods sales.

This forecast correction has not been reviewed by a chartered auditor.

The Company will monitor forecast feasibility via ongoing control of actual financial performance based on the internal reporting system

Specific legal basis: §5 clause 1 item 25  of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information submitted by issuers of securities, and conditions of recognizing information required by law of a non-EU state as equivalent.

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-12-09
Proxy Marek Matheja 2011-12-09

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