AAA

Current report:

Signing of a major credit agreement by a subsidiary

Report number: 7/2010 day: 2010-03-02

Legal basis

Art. 56 paragraph 1 item 2 of the Public Offering Act - current and periodic information

Contents of the report:

The Management Board of Barlinek S.A. (henceforth the "Issuer") hereby announces that on 1 March 2010 a credit agreement (henceforth the "Credit Agreement") was signed between Barlinek Inwestycje Sp. z o.o. (a fully owned subsidiary of Barlinek S.A.) based in Barlinek at ul. Przemysłowa 1 as the Borrower, and Bank Ochrony Środowiska S.A. in Warsaw, Al. Jana Pawła II nr 12 (henceforth referred to as the "Bank").

The Bank has granted the Borrower renewable working capital credit of 30,000,000 PLN (read: thirty million zlotys) intended to finance day-to-day business (henceforth referred to as the "Credit")

The following safeguards have been or will be established on the Credit Agreement towards the Bank:

1. a joint capped rate mortgage to a sum of 45,000,000 PLN established on property covering the land given over to perpetual usufruct and the building constituting a separate property, entered in the land and mortgage register KW no. SZ1M/00020830/0 and KW no. SZ1M/00036958/8 maintained by the District Court in Myślibórz, 5th Land and Mortgages Register Division, along with assignment of rights from the insurance policy,

2. a registered pledge on machines and appliances with accounting value of 12,469,653.59 PLN including the assignment of rights from the insurance policy,

3. a blank bill of exchange provided by the Borrower with aval from BARLINEK S.A. along with a blank bill of exchange agreement,

4. power of attorney to access the bank account in BOŚ S.A. Szczecin branch.

The credit will be available until 21 February 2011. This date is the final deadline for repayment of the credit. The Bank will charge interest on the credit set according to the WIBOR 1M rate increased by the Bank's commission.

The Credit Agreement contains no conditions which differ from those generally applied in such agreements.

The aforementioned Credit Agreement is considered to be significant, as its value exceeds 10% of the Issuer’s equity capital.

Legal basis:

Paragraph 5 section 1 item 3 of the Ordinance of the Minister of Finance of 19th February 2009 (Journal of Laws No 33, item 259) regarding current and periodic information to be submitted by issuers of securities and the conditions for recognition as equivalent of the information whose disclosure is required under the laws of a state which is not an EU member state.