Ciech S.A.

Legal Proceedings Report • Sep 6, 2016

Subject:Approval of the new financial terms for the supply of steam to asubsidiary

Contents of the report:

TheManagement Board of CIECH S.A. with its registered office in Warsaw (the"Issuer" or the "Company") hereby informs that today, the Ramnicu ValceaTribunal, Romania (court of 1stinstance), issued a non-finaldecision to dismiss the claim submitted by a subsidiary of the Issuer -CIECH Soda Romania S.A. based in Romania ("CSR") against S.C. CET GovoraS.A. in composition bankruptcy based in Romania ("CET"), for declaringthe termination of the agreement for the supply of process steam, filedby the court-appointed administrator of CET, void and ineffective. Thisdecision entails that the injunction relief obtained by CSR - in theform of suspension of legal effects of the termination of the agreementfor the supply of process steam - has been cancelled. The Issuer postedinformation on the aforementioned ruling, suspending the legal effectsof the termination of the agreement for the supply of steam, in itscurrent report no. 28/2016 of 18.08.2016.At the same time, the Issuerinforms that today, following many weeks of negotiations, CSR and CETapproved the new financial conditions for the supply of steam to CSR,which are a compromise between the expectations of CET and the financialpossibilities of CSR. The new price of process steam agreed between theparties is higher, by 16%, from the price specified in the terminatedagreement. Steam will be supplied under the new conditions as of today,from 12:30 p.m. (Romanian time). The parties intend to sign theagreement for the supply of process steam in the coming days. The Issuerposted information on the aforementioned termination of the agreementfor the supply of process steam, the legal measures taken and thenegotiations conducted with the court-appointed administrator of CET inits current reports nos. 24/2016 of 06.07.2016, 25/2016 of 28.07.2016,26/2016 of 03.08.2016, and 28/2016 of 18.08.2016.