Investor relations

Current report of J.W. Construction Holding S.A. Number 17/2011

Legal basis: Article 56.1.(2) of the Act on Public Offering - current and periodic information

Acting pursuant to section 19.3 of the Minister of Finance of 19 February 2009 on current and periodic information released by of issuers of securities and conditions for recognising information required under regulations of a non-member state as equivalent (Journal of Laws of 2009, No.33, Item 259), ) (the "Ordinance") the Management Board of J.W. Construction Holding S.A with its seat in Ząbki (the "Company", "Acquiring Company") recommends to the Company's shareholders, the Company's merger with the companies: Interlokum Spółka z o.o. with its seat in Warsaw, Stadnina Mazowiecka Spółka z o.o. with its seat in Ząbki, Construction Invest Spółka z o.o. with its seat in Ząbki, Project 55 Spółka z o.o. with its seat in Warsaw („Acquired Companies”) and voting "for" at the Annual General Meeting of Shareholders which is convened on 29 June 2011.

Basic information about the conditions of the proposed merger:

1.Type, the company and seat of the merging companies:

1.1 The acquiring company

J.W. Construction Holding Spółka Akcyjna domiciled in Ząbki at Radzymińska 326 Street, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the Capital City of Warsaw, XIV Commercial Division of the National Court Register under the KRS number 0000028142, Share capital of the Company amounts to PLN 10,814,656 and is divided into 54,073,280 ordinary bearer shares with a par value of PLN 0.20 each. The company is a public company within the meaning of the Act of 29 July 2005 on public offer and the conditions for introducing financial instruments to the organized trading system, and on public companies (Journal of Laws No. 184, item. 1539, as amended).

1.2 Acquired companies

1.2.1 Interlokum Spółka z o.o with its seat in Warsaw, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the City Warsaw, XII Commercial Division of the National Court Register under KRS number 0000170216. Share capital of the Company amounts to PLN 50.000 and is divided into 100 shares with a par value of PLN 500 each. 100% of the share capital is hold by the Company.

1.2.2 Stadnina Mazowiecka Spółka z o.o with its seat in Ząbki, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the City Warsaw, XIV Commercial Division of the National Court Register under the KRS number 0000271065, Share capital of the Company amounts to PLN 50.000 and is divided into 1.000 shares with a par value of PLN 50 each. 100% of the share capital is hold by the Company.

1.2.2 Construction Invest Spółka z o.o with its seat in Ząbki, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the City Warsaw, XIV Commercial Division of the National Court Register under the KRS number 0000250688, Share capital of the Company amounts to PLN 50.000 and is divided into 100 shares with a par value of PLN 500 each. 100% of the share capital is hold by the Company.

1.2.2 Project 55 Spółka z o.o with its seat in Ząbki, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the City Warsaw, XII Commercial Division of the National Court Register under the KRS number 0000139665, Share capital of the Company amounts to PLN 7.528.500 and is divided into 15.057 shares with a par value of PLN 500 each. 100% of the share capital is hold by the Company.

2. Merger methods

The merger will be conducted in accordance with art. 492.1.1 in conjunction with art. 516.6 of the Polish Commercial Companies Code by transferring all assets and liabilities of the Acquired Companies to the Acquiring Company- as the sole shareholder of the Acquired Companies. As a result of the merger, the Acquired Companies will be dissolved without liquidation. The merger will be performed on the basis of resolutions adopted by the general meeting of the Acquiring Company and the meeting of shareholders of the Acquired Companies, in accordance with the provisions of the Commercial Companies Code.

3. Legal basis of merger

3.1 The legal basis of the merger constitute provisions of the Commercial Companies Code and the provisions of the Articles of Association of the Acquiring Company and Agreements of Acquired Companies, pursuant to which an authorized bodies to make a decision on merger is the general meeting of the Acquiring Company and meetings of shareholders of each of the Acquired Company. A basic prerequisite for merger is to adopt resolutions on the merger by appropriate bodies of the merging companies.

The resolution of the general meeting of the Acquiring Company on the merger with the Acquired Companies will be adopted on the basis of Article. 492.1. 1 of the CCC and 10.4. 7 of the Articles of the Association of the Company and it constitute that the merger of the Companies will be through the acquisition of Acquired Companies by the Acquiring Company by transferring all the assets of the Acquired Companies to the Acquiring Company. With regard to the fact that the Acquiring Company owned all shares in each of the Acquired Company on a date of the merger and according to art. 515.1 of CCC, the merger will not increase the share capital of the Company.

3.2 In conjunction with. 516.5 and 6 of the Commercial Companies Code, the exchange ratio of shares of the Acquired Companies for shares of the Acquiring Company is not defined.

3.3 Principles for the allotment of shares in the Acquiring Company are not defined - in accordance with Article. 516.5 and 6 of the Commercial Companies Code.

3.3 The date from which shares entiltle to the participation in profits of the Acquiring Company are not defined - in accordance with Article. 516.5 and 6 of the Commercial Companies Code.

3.5 It is not predicted and expected that the Acquiring Company grant the shareholders and persons with special rights in the Acquired Companies the rights referred to in art. 499.1.5 of the Code of Commercial Companies.

3.6 There will be no special benefits for members of the merging companies and other persons involved in the merger.

4. Economic justification

The Acquired Companies are special vehicle companies which are owned in 100% by the Acquiring Company, which were established to implement and provide a particular investment. Currently, in connection with the completion of the investment implementation by the Acquired Company, or with the lack of necessity of the implementation of a particular investment within a separate special vehicle company, there is no further need to maintain such an extensive capital group of the Company. The merger will allow to concentrate all assets owned by the Acquired Companies in the Company while reducing the operating costs of the entire Capital Group of the Company.