Ciech S.A.

Legal Proceedings Report • Apr 17, 2019

The Management Board of CIECH S.A. (the "Company"or "Issuer")informs that today it hasreceived the decision of theHead of theMałopolskie Province Customs and Tax Office in Krakow (the "Authority"or "2ndInstance Authority")  dated3 April 2019.

Following the appeal lodged by the Company, the 2ndInstance Authority upheld the decision of the 1stInstanceAuthority of 13 December 2018, defining the Company's taxliability with regard to corporate income tax for 2012 in the amount ofPLN 43.7 million, together with interest for late payment, which as ofthe date of publication of this Report amounts to PLN 24.6 million.

TheCompany informed about the decision of the 1stInstanceAuthority, issued in the first instance, in its Current Report No.36/2018 of 27 December 2018.

TheCompany created provisions for its tax liability and interest accrueduntil 31 December 2018 in its separate financial statements of CIECHS.A. and consolidated financial statements of the CIECH Group for 2018,i.e. provisions for income tax in the amount of PLN 43.7 million,together with interest for late payment in the amount of PLN 23.5million, as announced in Current Report No. 02/2019 of 24 January 2019.

The Company and its advisors disagree with theapproach expressed in the decision of the 2ndInstanceAuthority. The Company intends to take further procedural measures inorder to defend the tax consequences of its operations in 2012, bylodging a complaint to the Provincial Administrative Court in Krakow.

Thedecision of the 2ndInstance Authority is due and payable.Accordingly, the Company is required to pay the amount of the taxspecified in the decision, i.e. PLN 43.7 million, together with interestfor late payment, which as of the date of publication of this Reportamounts to PLN 24.6 million.