AAA

Current report:

Significant contract with a dependent company

Report number: 58/2006 day: 2006-10-24

Legal basis

Art. 56 par. 1 pt 2 of the Bidding (current and periodic information) Act

Contents of the report:

The management of Barlinek S.A. hereby announces that in the period from May 4th 2006 it has signed four loan contracts with "Barlinek Invest" ltd, based in Vinnitsa in Ukraine, (a dependent body of Barlinek S.A.) with a total value of 8,350,000 USD, equivalent to 25,772,275 PLN according to the NBP’s average rate on 24.10.2006 (1 USD = 3.0865 PLN).

The purpose of these loans is to finance the expenditure connected with constructing the floorboard factory in Vinnitsa, Ukraine.

Characteristics of the highest valued contract:

The loan contract was signed with "Barlinek Invest" ltd based in Vinnitsa in Ukraine, on October 12th 2006. The value of the loan is 3,400,000 USD, equivalent to 10,494,100 PLN according to the NBP’s average rate on 24.10.2006 (1 USD = 3.0865 PLN). The repayment date has been set as 30.12.2010. The contract contains no stipulations regarding contractual penalties.

The conditions of the contract do not differ from the conditions generally applied for this type of contract.

The contract is considered significant as the total value of the loan contracts signed with Barlinek Invest ltd exceeds 10% of the ownership capital of Barlinek S.A.