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, Poland (henceforth the Company) hereby reports that on 27 October 2008 the Company received a Decision of the District Court for Warsaw Mokotów 9th Land and Mortgage Division dated 22 October 2008 stating that on 20 October 2008, in the 4th section of the Land and Mortgage Register Kw No. WA3M/00104425/2 kept by that Court for the real estate owned by the Company and marked as a record parcel No. 7 from precinct 4-01-07 with the area of 12,221 sq m, located in Warsaw at ul. Odkryta 65 (henceforth the Real Estate), a contractual ordinary mortgage in the amount of PLN 35,000,000 and a contractual capped mortgage to the highest amount of PLN 8,610,000 were entered in favour of Fortis Bank Polska S.A. with its seat in Warsaw (henceforth the Bank) as a collateral for the loan agreement No. WAR/3013/08/168/CB. On the Real Estate, the Company carries out a property development project, i.e. the construction of a multi-family housing estate. The value of the Real Estate in the Company’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 mortgages in question are subject to disclosure pursuant to section 5.(1) of the Ordinance was their value, which exceeded the PLN equivalent of EUR 1,000,000.