With reference to current report no 29/2010 dated June 21st, 2010 on establishment of collaterals in connection with the Agreement on refinancing the debt of the Ciech Group referred to in current report no 16/2010 dated April 26th, 2010 (“Loan”), and the agreement between the creditors referred to in current report no 21/2010 dated May 18th, 2010, the Management Board of Ciech SA with its registered office in Warsaw ("Issuer", "Ciech SA"), informs that on October 20th, 2010 it was notified of establishment of joint capped mortgages on the following assets owned by subsidiary of Ciech SA, Zakłady Chemiczne Zachem SA which Zakłady Chemiczne Zachem S.A. is a perpetual usufructor or perpetual co-usufructor of, and which are entered in the following land and mortgage registers: BY1B/00063606/4, BY1B/00095704/4, BY1B/00015133/6, BY1B/00035041/0, BY1B/00042751/2, BY1B/00058465/5, BY1B/00078130/4, BY1B/00082451/1, BY1B/00082452/8, BY1B/00088911/6, BY1B/00091275/9, BY1B00082456/6, BY1B/00070791/9, BY1B/00082455/9, PO2P/00132556/7.
The joint capped mortgages have been established on the aforementioned plots of land in favour of the following banks (separate joint capped mortgage in favour of each bank):
1) Fortis Bank Polska S.A. up to the highest sum of PLN 10,950,596.53;
2) BNP Paribas S.A. Branch in Poland up to the highest sum of PLN 4,838,808.63
each of which has equal priority against each other and against the mortgage established in favour of Credit Agricole Corporate and Investment Bank S.A. Branch in Poland referred to in current report no 57/2010 dated October 19th, 2010, but 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.. described in current report no 57/2010.
The estimated total net value of the assets on which joint capped mortgages have been established accounts for approximately PLN 105 594 thousand.
The assets are considered assets of significant value since their value exceeds 10% of the Issuer’s equity.
There are no connections between people supervising and managing the Issuer and the banks in favour of which the collaterals have been established.
Establishment of joint capped mortgages results from the Agreement on refinancing the debt of the Ciech Group dated April 26th, 2010 and the Agreement between the creditors dated May 17th, 2010, and from execution of the documents notified by the Management Board of Ciech S.A. in current report number 29/2010 dated June 21st, 2010.