Current reports

With reference to current report no. 29/2010 dated June 21st, 2010 on establishment of securities in connection with the Agreement on refinancing the debt of the Ciech Group and agreement between the creditors, the Management Board of Ciech S.A. with its registered office in Warsaw (“Issuer”, “Ciech SA”), pursuant to § 5 (1) (1) of the Ordinance of the Minister of Finance of February 19th, 2009 on current and periodic information published by issuers of securities and the conditions of considering as equivalent of information required by the laws of a country not being a member state, with reference to current report no. 29/2010 dated June 21st, 2010 on establishment of securities in connection with the refinancing agreement referred to in current report no. 16/2010 dated April 26th, 2010 (“Loan”), informs that on August 9th, 2010 it was notified of establishment of aggregate capped mortgages on the following assets of Ciech SA’s subsidiary, Zakłady Chemiczne "Organika-Sarzyna" S.A.:

1. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 32252 (thirty two thousand two hundred and fifty two) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
2. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 36175 (thirty six thousand one hundred and seventy five) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
3. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 44291 (forty four thousand two hundred and ninety one) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
4. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 41507 (forty one thousand five hundred and seven) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
5. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 29668 (twenty nine thousand six hundred and sixty eight) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
6. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 39995 (thirty nine thousand nine hundred and ninety five) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
7. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures situated thereon, entered in land and mortgage register no. 33400 (thirty three thousand four hundred) maintained by the District Court in Leżajsk, Land and Mortgage Register Division;
8. perpetual usufruct of land located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province, entered in land and mortgage register no. 12110 (twelve thousand one hundred and ten) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
9. perpetual usufruct of land located in Wola Zarczycka, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures and facilities situated thereon, entered in land and mortgage register no. 44394 (forty four thousand three hundred and ninety four) maintained by the District Court in Leżajsk, Land and Mortgage Register Division;
10. perpetual usufruct of land located in Wola Zarczycka, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures and facilities situated thereon, entered in land and mortgage register no. 47100 (forty seven thousand one hundred) maintained by the District Court in Leżajsk, Land and Mortgage Register Division;
11. real property located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province, entered in land and mortgage register no. 37221 (thirty seven thousand two hundred and twenty one) maintained by the District Court in Leżajsk, Land and Mortgage Register Division;
12. real property located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province, entered in land and mortgage register no. 37920 (thirty seven thousand nine hundred and twenty) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
13. real property located in Nowa Sarzyna, Nowa Sarzyna district, Leżajsk poviat, Podkarpackie Province, entered in land and mortgage register no. 43382 (forty three thousand three hundred and eighty two) maintained by the District Court in Leżajsk, 5th Land and Mortgage Register Division;
14. perpetual usufruct of land located in Sarzyna, Leżajsk poviat, Podkarpackie Province and ownership of buildings and other structures and facilities situated thereon, entered in land and mortgage register no. 30886 (thirty thousand eight hundred and eighty six) maintained by the District Court in Leżajsk, Land and Mortgage Register Division;
15. perpetual usufruct of land located in the town of Zawóz, Solina district, Lesko poviat, Podkarpackie Province and ownership of buildings and other structures and facilities situated thereon, entered in land and mortgage register no. KS1E/00009898/1 maintained by the District Court in Lesko, 4th Land and Mortgage Register Division.

Aggregate capped mortgages on the aforementioned real property were established for the following banks (separate aggregate capped mortgage for each bank):

1. Fortis Bank Polska S.A. with its registered office in Warsaw, aggregate capped mortgage up to the maximum sum of PLN 5,914,652.03 (five million nine hundred fourteen thousand six hundred and fifty two zloty and three grosz), to secure the bank’s claims towards Zakłady Chemiczne Organika Sarzyna Spółka Akcyjna with its registered office in Nowa Sarzyna arising from the Agreement between Creditors, on account of guarantee for repayment of liabilities of “Ciech S.A.” with its registered office in Warsaw under  fixed term loan given by  Fortis Bank Polska S.A. to the Issuer pursuant to the loan agreement dated June 11th, 2010;
2. Credit Agricole Corporate and Investment Bank S.A. Branch in Poland with its registered office in Warsaw, aggregate capped mortgage up to the maximum sum of EUR 870,041.66 (eight hundred seventy thousand and firty one euro and sixty six cents) to secure the bank’s claims towards Zakłady Chemiczne Organika Sarzyna Spółka Akcyjna with its registered office in Nowa Sarzyna arising from the Agreement between Creditors, on account of guarantee for repayment of liabilities of “Ciech S.A.” with its registered office in Warsaw under  the loan agreement dated June 14th, 2010;
3. BNP Paribas S.A. Oddział w Polsce with its registered office in Warsaw, aggregate capped mortgage up to the maximum sum of PLN 2,613,544.31 (two million six hundred thirteen thousand five hundred and forty four zloty and thirty one grosz) to secure the bank’s claims towards Zakłady Chemiczne Organika Sarzyna Spółka Akcyjna with its registered office in Nowa Sarzyna arising from the Agreement between Creditors, on account of guarantee for repayment of liabilities of “Ciech S.A.” with its registered office in Warsaw under  the loan agreement dated June 14th, 2010.

each of which has equal, lower priority than the mortgages established in favour of ING Bank Śląski S.A., Bank Handlowy w Warszawie S.A., Bank Polska Kasa Opieki S.A., Powszechna Kasa Oszczędności Bank Polski S.A., BRE Bank S.A., Bank Millennium S.A.,  DnB Nord Polska S.A.. to secure their claims, which were notified by the Management Board of Ciech SA in report no. 38/2010 dated August 10th, 2010.

Accoding to the International Accounting Standards, the total net value of the assets on which aggregate capped mortgages were established accounts for approximately PLN 54 868 thousand (as at Juy 31st, 2010).

The assets are considered assets with significant value since their value exceeds 10% of the Issuer’s equity.

There are no connections between people supervising and managing the Issuer and banks in favour of which the securities were established.

Establishment of aggregate capped mortgages results from the Agreement for refinancing the debt of the Ciech Group dated April 26th, 2010 and the Agreement between the creditors dated May 17th, 2010 and from documents notified by the Management Board of Ciech S.A. in current report number 29/2010 dated June 21st, 2010. The Management Board of Ciech S.A. assumes that notifications of establishment of other securities notified in current report number 29/2010 will be delivered soon.
Thus, the final formalities relating to refinancing the debt of the Ciech Group will be completed.

Signatures of the Company’s Representatives : Artur Osuchowski – Member of the Management Board