OREANDA-NEWS. August 25, 2011.  The Management Board of Trakcja - Tiltra S.A. (the "Company") hereby announces that on 22 August 2011 it was informed by the Company’s subsidiary - Poldim S.A. with its registered office in Tarnow ("Poldim") that since the Company has taken control over Poldim (19.04.2011) Poldim’s turnover generated together with the Generalna Dyrekcja Drog Krajowych i Autostrad (General Directorate for National Roads and Motorways) company branch office in Lodz, with its registered office in Lodz ("GDDKiA O/Lodz" "Customer"), under the agreement number 3/06/R/2010 concluded between Poldim, acting as leader of the consortium composed of:
1. POLDIM Spolka Akcyjna with its registered office in Tarnow – Leader of the consortium;
2. Bogl a Krysl k.s. with its registered office in Prague – Partner to the consortium;
3. Bogl a Krysl Poland Sp.z o.o. with its registered office in Cieszyn – Partner to the consortium;

(hereinafter referred to as: the ˮContractorˮ)

and GDDKiA O/Lodz, on 18.06.2010 (the ˮAgreement”) on Construction of A1 Motorway on the section border of Kujawsko – Pomorskie voivodeship / Lodzkie voivodeship until Strykow junction from km 230+817 to km 295+850 - Task II, Section 2, Subsection 1 from km 245+800 to km 261+000, Sojki junction – Kotliska junction, exceeded a material value.

Total turnover since the day of taking over the control, until 22 August 2011, has amounted to PLN 52,547,646.24 net (in words: fifty two million five hundred forty seven thousand six hundred forty six zlotys 24/100).

Value of the Agreement:

Total net value of the Agreement 444.414.206,45 (in words: four hundred forty four million four hundred fourteen thousand two hundred six zlotys 45/100).
Part of the value of the net Agreement, which belongs to Poldim: PLN 226,076,606.39 (in words: two hundred twenty six million seventy six thousand six hundred six zlotys 39/100).

Subject Matter of the Agreement:

The Contractor pursuant to the Agreement shall perform the works involving construction of A1 Motorway on the section border of Kujawsko – Pomorskie voivodeship / Lodzkie voivodeship until Strykow junction from km 230+817 to km 295+850 - Task II, Section 2, Subsection 1 from km 245+800 to km 261+000, Sojki junction – Kotliska junction.

Contractual penalties:

The Contractor shall pay the Customer the following contractual penalties:
- for exceeding the Deadline for Completion of the works, in the amount equal to 0.02% of the net price, for each day of delay;
- for withdrawal from the Agreement for reasons attributable to the Contractor – in the amount equal to 10% of the net price;
- for failure to perform the Required Minimum Performance by the deadline, in the amount equal to 0.02% of the net price for each day of delay;
- for exceeding deadline to submit the Schedule, report and deadline to submit the detailed calculation of the unit prices in the amount of PLN 5,000 for each day of delay;
- for failure to meet deadline for defects removal and performance of minor outstanding works specified in the Take-over Certificate or for failure to meet deadline defects and performance of minor outstanding works during the period of warranty for defects within the period specified by the Engineer / the Customer, in the amount of PLN 5,000 for each day of delay.

The Customer shall pay the Contractor a penalty for withdrawal from the Contract for reasons attributable to the Customer, in the amount equal to 10% of the net price.

Terms and conditions of the agreement are similar to those commonly used for these type of agreements.

The amount of the above mentioned Agreement exceeds 10% of the equity of Trakcja - Tiltra S.A.

Legal basis: § 5 paragraph 1 point 3 of the Regulation of the Minister of Finance dated 19 February 2009 on the current and periodic disclosures to be made by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state.