Ciech S.A. — M&A Activity 2016

Nov 7, 2016

Contents of the report:

The Management Board of CIECH S.A. with itsregistered office in Warsaw (the "Issuer" or the "Company"), inreference to current report no. 33/2016 dated 02.11.2016, herebyannounces that today it has become aware of the selection and conclusionof the sales agreement for 100% shares in SAPEC - Agro, S.A., a companyincorporated under the law of Portugal with its registered office inSetúbal, Portugal, and 100% shares in Trade Corporation International,S.A., a company incorporated under the law of Spain with its registeredoffice in Madrid, Spain (hereinafter jointly referred to as the: "Companies")by the seller - SAPEC - Portugal, SGPS, S.A. acompany incorporated under the law of Portugal with its registeredoffice in Lisbon, Portugal (the "Seller"), with Bridgepointinvestment fund.

The Issuer became aware of the information from theannouncement published today on the website of the parent company of theSeller - SAPEC S.A. with its registered office in Brussels, Belgium(www.sapec.be/images/2016/2016-11-7%20COMMUNIQUE%20DE%20PRESSE%20DU%20GROUPE%20SAPEC_EN.pdf).

The conclusion of the agreement for the sale ofshares of the Companies entails completion of participation of theIssuer in the process of acquisition of the Companies.

The Management Board of the Issuer emphasises thatthe submission of the offer was preceded by a series of business,operational and financial analysis, and in the opinion of the ManagementBoard, the offer itself was optimal, considering the potential benefitsfrom the purchase of the Companies for the Issuer.

At the same time, the Management Board informs thatits plans for intensive development of the AGRO business will bemaintained. The Issuer will continue to strive to strengthen this areaof operations, including both organic growth and potential acquisitions.