AAA

Current report:

Signing of a Major Credit Contract.

Report number: 12/2006 day: 2006-03-14

The management of Barlinek S.A. ("the Company") hereby announces that on March 13th 2006 it signed a credit contract with Bank Zachodni WBK S.A., based in Wrocław ("the Bank") for its current account no. K0000723 for a sum of 43,000,000
(in full: forty million) PLN.

The credit was granted for the period until March 31st 2008.

The interest on the credit is variable, set based on the WIBOR 1M rate increased by the Bank’s profit margin.

The guarantee for the repayment of the credit is:

1. the Company’s own blank bill,
2. the guarantee of Barlinek Inwestycje ltd. based in Barlinek.

The contract was signed with suspension conditions: the credit may be used no earlier than the fulfilment of the following conditions:

1. The establishment of legal guarantees for the credit,
2. Presentation of attestations from National Insurance and the Tax Office of the state of settlement between the Company and the Guarantor.

The management of the Company announces that on March 13th 2006 the first condition was fulfilled – the guarantees were established.

The remaining provisions of the contract do not differ from those generally applied in such contracts.

The Contract does not provide for any contractual penalty exceeding 10% of the value of the Contract or exceeding the PLN equivalent of 200,000 Euro.

The Contract is considered significant due to the value of the contract, which exceeds 10% of the ownership capital of BARLINEK S.A.