Equity increase in subsidiary company

The Management Board of Stalexport S.A. informs that on 24.02.2006 the Company received from its proxy in Luxembourg the original documents concerning the registration of the increase in equity of the company "Stalexport Autoroute S.a.r.l." with seat in Luxembourg (Stalexport S.A. subsidiary company in 100%).

The company equity was increased from the amount of 15,000 EUR to the amount of 42,765,000 EUR, i.e. by the sum of 42,750,000 EUR, through the issue of 1,710,000 shares, with value of 25 EUR per each share.

The total number of votes, after registering the change in equity, amounts to 1,710,600.
The equity was increased by a contribution in kind made by Stalexport S.A. in a form of 100 % shares of the company Stalexport Autostrada

Małopolska S.A., with value of 42,973,363.08 EUR, out of which:

• the amount of 42,750,000 EUR will be allocated to the share capital
• the amount of 223,363.08 EUR ? for reserve capital..

The book value of the contribution in kind amounts to 163,75 m zloty,

A reserve by virtue of deferred income tax from the value of shares of the company Stalexport Autostrada Małopolska S.A., contributed to the company "Stalexport Autoroute S.a.r.l.", was created. The updated valuation of the shares contributed to the company  "Stalexport Autoroute S.a.r.l.". was the base to create the reserve by virtue of deferred income tax. The results of re-valuation of the shares of Stalexport Autostrada Małopolska S.A. as at 31.12.2005 amounted to 134,197 thousand zloty, and the reserve by virtue of deferred income tax amounted to 25,497 thousand zloty.

The contribution of shares of the company Stalexport Autostrada Małopolska S.A to "Stalexport Autoroute S.a.r.l." is an element of building the holding structure which is anticipated by the agreement in regard to granting the credit for financing the toll motorway project Katowice- Kraków section ( financial closing).