Equity increase in subsidiary company

The Management Board of Stalexport S.A. informs that on 22.03.2006 the Company was notified by its proxy in Luxembourg about registration of the increase in equity of the company "Stalexport Autoroute S.a.r.l." with seat in Luxembourg (Stalexport S.A. subsidiary company in 100%).

The company equity was increased from the amount 42,765,000 EUR to the amount of 47,565,000 EUR, i.e. by the sum of 4,800,000 EUR, through the issue of 192,000 shares, with value of 25 EUR per each share.
The total number of votes, after registering the change in equity, amounts to 1,902,600.

The equity was increased by a contribution in kind made by Stalexport S.A. in a form of 55 % shares of the company Stalexport TRANSROUTE Autostrada S.A., with value of 5,067,810.54 EURO, out of which:

• the amount of 4,800,000 EUR will be allocated to the share capital
• the amount of 267,810.54 EURO ? for reserve capital..

The book value of the contribution in kind amounts to 19,730 thousand zloty,
A reserve by virtue of deferred income tax from the value of shares of the company Stalexport Transroute Autostrada S.A. contributed to the company "Stalexport Autoroute S.a.r.l." was created.

The updated valuation of the shares contributed to the company  "Stalexport Autoroute S.a.r.l." was the base to create the reserve by virtue of deferred income tax.

The results of re-valuation of the shares of Stalexport Transroute Autostrada S.A. as at 31.12.2005 amounted to 19,455 thousand zloty, and the reserve by virtue of deferred income tax amounted to 3,696 thousand zloty.

The contribution of shares of the company Stalexport Transroute Autostrada S.A. to "Stalexport Autoroute S.a.r.l." is an element of building the holding structure which is anticipated by the agreement in regard to granting the credit for financing the toll motorway project Katowice- Kraków section ( financial closing).