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Current report:

Signing of a loan agreement with a subsidiary

Report number: 42/2008 day: 2008-12-05

Legal basis

Art. 56 paragraph 1 pt 2 of the Bidding (current and periodic information) Act

Contents of the report:

The management Board of Barlinek S.A. with its registered offices in Kielce ("the Issuer") hereby announces that 4th December, 2008 it entered into a loan agreement with Barlinek Cyprus Limited with its registered offices in Nicosia (Cyprus) (a subsidiary of Barlinek SA), as a the Borrower for a maximum amount of 8,000,000 EUR (which is equivalent to 31,059,200 PLN according to NBP average rate on 4th December, 2008, i.e. 1 EUR = 3.8824 PLN).

The Borrower shall repay the borrowed amount in full within 2 weeks of receipt of a written request from the Issuer to do so, however no later than until 31 December, 2015. The interest on the loan was established at a variable rate, based on the EURIBOR rate plus a profit margin.

The loan shall be used towards financing by Barlinek Cyprus Limited of loans for Barlinek Invest Sp. z o.o. (a subsidiary of Barlinek SA) to purchase machines and equipment to allow Barlinek Invest Sp. z o.o. construction and start-up of wood processing plants.

The loan agreement does not contain any provisions for contractual penalties.

The loan agreement is considered to be major, as the value of liabilities resulting from it exceeds 10% of Barlinek SA’s equity capital.

Legal basis: Paragraph 5 section 1 pt 1 and 3 of the Ordinance of the Ministry of Finance of October 19th 2005 concerning current and periodic information released by issuers of securities (Journal of Laws 209 item 1744, as amended).