26/2010 - Information on the conclusion of a significant agreement

The Management Board of Trakcja Polska S.A. (the “Company”) hereby announces that on 20 August 2010 in connection with the performance of the agreement for the following task:

Performance of construction works for comprehensive modernization of the station and railways in the area of LCS Działdowo, as part of the project POliŚ 7.1-41:

“Modernization of the E 65/C-E 65 railway line on the Warsaw – Gdynia section – area of LCS Działdowo (“Contract”), the conclusion of which was notified by the Company in current report no. 9/2010 dated 31 May 2010,

it entered into an Executive Agreement no. K-1001/2010 with respect to the performance, under the Contract, of part of sectoral works (“Agreement”) with ZUE S.A. with its registered office in Kraków (30-443) at ul. Jugowicka 6a (hereinafter “Partner”).

Net value of the Agreement: PLN 125,523,614.11 (one hundred twenty five million, five hundred and twenty-three thousand, six hundred and fourteen zlotys, 11/100).

Payment conditions:

The Partner will issue VAT invoices for the performed and accepted works once per month for the net amount resulting from the acceptance record regarding the completed elements of works.

Advance payment:

No later than within 3 days from the date of receiving an advance payment by the Company under the Contract, the Partner will receive an advance payment equal to 10% of the net remuneration resulting from the Agreement increased by the VAT tax.

Disbursement of the advance payment is conditional on the Partner providing a guarantee for the return of the advance payment.

The content of the guarantee which must be presented by the Partner will be agreed with the Company in advance.

The Agreement does not envisage any contractual penalties.

The value of the above-mentioned Agreement exceeds 10% of Trakcja Polska S.A.’s equity and thus it constitutes a substantial agreement within the meaning of § 2 par. 1 item 44 of the Regulation of the Minister of Finance dated 19 February 2009 on current and periodic information published by issuers of securities and the conditions for regarding information required by the law of a non-member state as being equivalent (Journal of Laws No. 23, item 259).

Legal grounds: § 5 par. 1 item 3 of the Regulation of the Minister of Finance dated 19 February 2009 on current and periodic information published by issuers of securities and the conditions for regarding information required by the law of a non-member state as being equivalent.