Ciech S.A.

Legal Proceedings Report • Oct 10, 2019

Subject: Judgement of the ProvincialAdministrative Court in Krakow

Text of the report:

The Management Board of CIECH S.A. (hereinafterreferred to as the "Company" or "Issuer")informs that today the Provincial Administrative Court in Krakow (the "WSA")announced its judgment in which it dismissed the Company's complaintagainst the decision (the "Decision") of the Head of theMałopolskie Province Customs and Tax Office in Krakow (the "2ndInstance Authority") of 3 April 2019, upholding the decision of theHead of the Małopolskie Province Customs and Tax Office in Krakow (the "1stInstance Authority") of 13 December 2018 and determining the amountof the tax liability of the Company due to corporate income tax for 2012.

The Company, in its current reports:

1.-No. 36/2018 of 27 December 2018,informed about the decision of the 1stInstance Authority;

2.-No. 2/2019 of 24 January 2019, informedabout the creation of provisions for the tax liability and interest;

3.-No. 12/2019 of 17 April 2019, informedabout the decision of the 2ndInstance Authority.

The amount of tax liability specified in the Decisionof PLN 43.7 million, together with late payment interest in the amountindicated by the Tax Office competent for the registered office of theCompany (the "Office"), i.e. PLN 22.7 million, was paid tothe Office after the receipt of the Decision.

The Company and its advisors disagree with thejudgment of the WSA. The Company intends to take further proceduralsteps in order to defend the tax consequences of its 2012 operatopms bysubmitting a cassation complaint to the Supreme Administrative Court inWarsaw.