Sale of shares

Stalexport SA informs that on 21.07.2004 STALEXPORT SA and the company Celsa Huta Ostrowiec Sp. z o.o. from Ostrowiec Świętokrzyski concluded the agreement of shares sale.
The agreement concerns the sale by STALEXPORT S.A of 17 426 shares of the company Przedsiębiorstwa Przerobu i Obrotu Złomem ?Złomhut? Sp. z o.o. with seat in Bodzechów, with nominal value of 1000 zlotys each share, representing 65,45 % of the equity and votes at the general meeting.
The total sale price of shares amounts to 9.500.000 zlotys. The book value as on 20.07.2004 amounts to 2.218.735,51 zlotys.
The agreement will come into force as soon as the following suspending condition is fulfilled, i.e. the transfer of legal title:

• the property of shares will be transferred as soon as the Purchaser (Celsa) receives from PKO BP SA its declaration regarding the consent to strike the register lien, on the shares, off the Register of Liens, which secures a part of credits granted STALEXPORT SA by the bank. In return for striking off the register lien by the bank, the Purchaser ( Celsa) will pay the bank, on the behalf of the Seller (STALEXPORT SA ) the amount of 5.700.000 zlotys ? a part of the sale price, in virtue of payment of a part of credits.

After this transaction Stalexport SA will not possess shares in the company Przedsiębiorstwo Przerobu i Obrotu Złomem ?Złomhut? Sp. z o.o. with seat in Bodzechów.
The sale of shares of this company is a successive stage of executing the restructuring plan of the Capital Group of Stalexport SA.