Investor relations

Report concerns:
Mortgage establishment

Report’s text:
Acting pursuant to para. 5 subpara. 1 point 1 of the Ordinance of the Minister of Finance of October 19, 2005 regarding current and periodical information submitted by issuers of securities (Journal of Laws No. 209, item 1744) (“Ordinance”), J.W. Construction Holding S.A. with its registered office in Ząbki (“Company”) announces that on June 23, 2008, the Company received a notification from the District Court in Szczecin, 13th Land and Mortgage Register Division (“Court”) of June 12, 2008, stating that on June 11, 2008, in section IV of the land and mortgage registers maintained for the following properties owned by the Company:

1. land with an area of 0.5261 hectares situated in Szczecin, ul. Odzieżowa 33 – Aleja Wyzwolenia, Land and Mortgage Register No. SZ1S/00082676/9 maintained by the Court;
2. land with an area of 0.1478 hectares situated in Szczecin, ul. Wyzwolenia 50, Land and Mortgage Register No. SZ1S/00082677/6 maintained by the Court

(“Properties”)

an entry was made concerning a contractual capped mortgage established for the benefit of Bank Ochrony Środowiska S.A., Branch No. 1 in Warsaw (“Bank”) amounting to PLN 160,000,000. The mortgage was established in connection with the conclusion of an annex increasing the amount of loan granted by the Bank and the change of collateral, which was announced by the Company in Current Report No. 19/2008 of April 11, 2008.

The value of the Properties in the Company’s books of account has been recognized at acquisition price and does not exceed 10% of the Company’s equity. There are no ties between the Bank and the Bank’s management on the one hand and the Company and the members of the Company’s Management Board or Supervisory Board on the other hand. The criterion for deeming the mortgage in question subject to disclosure pursuant to para. 5 subpara. 1 point 1 of the Ordinance was its amount, which exceeded the Polish zloty equivalent of EUR 1,000,000.