Investor relations

Report concerns:
Mortgage establishment

Report’s text:
Acting pursuant to section 5.1.(1) of the Ordinance of the Minister of Finance on current and periodical reporting by issuers of securities of 19 October 2005 (Journal of Laws of 2005 No. 209, item 1744) (henceforth the Ordinance), J.W. Construction Holding S.A., with its seat in Ząbki (henceforth the Company) hereby reports that on 29 August 2008 a company operating under the business name Construction Invest Spółka z o.o. with its seat in Ząbki (henceforth the Subsidiary), a Company’s subsidiary, received a notification from the District Court for Warsaw Mokotów in Warsaw 13th Land and Mortgage Division (henceforth the Court) of 26 August 2008 to the effect that on 18 August 2008 in the 4th section of the Land and Mortgage Register No. WA2M/00110066/5 kept by that Court for the real estate being in perpetual usufruct of the Subsidiary and located in Warsaw at ul. Pileckiego, marked as the record parcel No. 5/1 from precinct 1-10-73 with the area of 0.7622 hectare (henceforth the Real Estate), a contractual capped mortgage to the highest amount of PLN 10,000,000 was entered in favour of INVEST - BANK S.A. with its seat in Warsaw, Branch in Warsaw (henceforth the Bank). The Subsidiary intends to construct a commercial building on the Real Estate. The value of the Real Estate in the Subsidiary’s accounting records is recognized at its purchase price and does not exceed 10% of the Company's equity. There are no relations between the Bank / its managers and the Company / members of its Management and Supervisory Board. The criterion for deciding that the mortgage in question is subject to disclosure pursuant to section 5.(1) of the Ordinance was its value, which exceeded the PLN equivalent of EUR 1,000,000.