Equity increase

Referring to the report no 38 dated 27.06.2006 regarding an increase in the equity, the Management Board of STALEXPORT S.A. informs that on 02.08.2006 the Company received the Decision of the District Court in Katowice, Economic Department of the National Judicial Register (KRS) dated 27.07.2006 in regard to an increase in the company?s equity.
The Court`s decision resulted in:

1. increasing the company`s equity from 247,205,290 zlotys (say: two hundred forty seven million two hundred five thousand two hundred ninety) to 315,524,046 zlotys (say: three hundred fifteen million five hundred twenty four thousand forty six), i.e., by the amount of 68,318,756 zlotys (say: sixty eight million three hundred eighteen thousand seven hundred fifty six r),
2. increasing the number of shares from 123 602 645 (say: one hundred twenty three million six hundred two thousand six hundred forty five) to 157 762 023 (say: one hundred fifty seven million seven hundred sixty two thousand twenty three), i.e. by 34 159 378 (say: thirty four million one hundred fifty nine thousand three hundred seventy eight) ordinary bearer shares with nominal value of 2.00 zloty (two zloty) each share.

The estimated structure of shareholders possessing more than 5% shares in the Company`s equity/ in total number pf votes at GSM, is as follows:

• AUTOSTRADE S.p.A. z siedzibą w Rzymie 34.159.368 tj. 21,65 %
• Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej 18.022.835 tj. 11,42 %
• PKO Bank Polski S.A. 8.870.385 tj. 5,62 %