Issue of shares of F series - issue price

Referring to report no 41 of 08.06.2004 re the resolution of the Management Board concerning the capital increase ( issue of shares of F series), the Management Board informs that on 29.09.2005 the Management Board and the Supervisory Boards passed the resolutions regarding the issue of shares of "F" series, i.e.:

1. on the basis of par 8 passage 2 point 3 of the Company`s Charter the Management Board of STALEXPORT S.A determined the issue price of shares of F series, which will be issued within an increase of stock capital of the Company in the range of the target capital, at the level of 2 zloty (two zloty) for one share. Simultaneously we inform that on the basis of par. 8 passage 2 point 3 of the Company`s Charter, the Supervisory Board approved the price determined by the Management Board.
2. moreover, the Supervisory Board acting o the basis of par. 8 passage 2a of the Company`s Charter authorised the Management Board to deprive the existing shareholders of the right to acquire shares of F series, which will be issue on the strength of the Management Board resolution within an increase of the stock capital of the Company in the range of the target capital.

The approval for the above mentioned price and the auhtorisation of the Management Board to deprive the existing shareholders of the right to acquire shares of F series, are valid till 31st December 2005. After this date the Management Board will be obliged, according to § 8 passage 2 point 3 and § 8 passage 2a of the Company`s Charter, to address the Supervisory Board with a motion to agree on determining the issue price of shares of F series by the Management Board and on authoring the Management Board to deprive the existing shareholders of the right to acquire the shares of F series.

As from today the resolution no 5/2004 of the Supervisory Board of Stalexport S.A. dated 7.06.2004 on an increase of stock capital by the Management Board in the range of target capital and giving consent to deprive the existing shareholders of the right to acquire shares becomes void.