AAA

Current report:

Establishing of joint capped rate mortgages on assets of significant value

Report number: 31/2009 day: 2009-07-29

Legal basis

Art. 56 paragraph 1 item 2 of the Public Offering Act - current and periodic information

Contents of the report:

The Management Board of Barlinek S.A. (the Issuer) hereby announces that yesterday it received information that on July 27th 2009 Barlinek Inwestycje Sp. z o.o. based in Barlinek (a subsidiary of Barlinek S.A.) received announcements from the Regional Court in Myśliborz dated 24th and 27th of July 2009 regarding the entry of mortgages on property owned by Barlinek Inwestycje Spółka z o.o. in Barlinek (a subsidiary of Barlinek SA), on behalf of Corporate Regional Branch in Szczecin of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (Polish Savings Bank PLC) into the land and mortgages register.

The announcements concerned the establishment of joint capped rate mortgages:

1. worth 90,000,000 PLN on the perpetual usufruct rights to the land and ownership of the buildings located in Barlinek at ul. Przemysłowa 1, for which the Regional Court in Myśliborz keeps the land and mortgage register No SZ1M/00037352/7, SZ1M/00037344/8, SZ1M/00036338/6. The perpetual usufructer of the land is Barlinek Inwestycje Sp. z o.o. based in Barlinek at ul. Przemysłowa 1, as a hedging of credit granted by PKO BP S.A. to Barlinek Inwestycje Sp. z o.o. of a value of 60,000,000 PLN on the basis of the credit agreement dated 28.06.2006.

2. worth 105,000,000 PLN on the perpetual usufruct rights to the land and ownership of the buildings located in Barlinek at ul. Przemysłowa 1, for which the Regional Court in Myśliborz keeps the land and mortgage register No SZ1M/00036339/3, SZ1M/00037389/5. The perpetual usufructer of the land is Barlinek Inwestycje Sp. z o.o. based in Barlinek at ul. Przemysłowa 1, as a hedging of credit granted by PKO BP S.A. to Barlinek S.A. of a value of 70,000,000 PLN on the basis of the credit agreement dated 29.01.2006.

The book value of the aforementioned property in the ledgers of Barlinek Inwestycje Sp. z o.o. stands at 51,271,753.08 PLN as of 30.04.2009.

There is no association between Barlinek S.A. and PKO BP Bank S.A. There is no association between managing or supervisory persons in Barlinek S.A. and managing or supervisory persons in PKO BP Bank S.A.

Criteria for considering the assets to be of significant value - assets for which the mortgage is set exceeds 10% of Barlinek SA’s equity capital.

Legal basis: § 5 item 1 point 1 of the Ordinance of the Minister of Finance of 19 February 2009 regarding current and periodic information to be submitted by issuers of securities and the conditions for recognition as equivalent of the information whose disclosure is required under the laws of a state which is not an EU member state (Journal of Laws No 33/2009, item 259).