Ciech S.A.

Report Publication Announcement • Nov 7, 2016

Contents of the report:

The Management Board of CIECH S.A. with itsregistered office in Warsaw (the "Issuer") announces that today adecision has been made to recognise, in the consolidated financialstatements of CIECH Group for Q3 2016 (the "Consolidated FinancialStatements"), which are currently being prepared by the Issuer, anon-recurrent, non-monetary event affecting the Consolidated FinancialStatements.

Due to the fact that CIECH Soda Polska S.A. (asubsidiary of the Issuer) fulfils the conditions to qualify for publicaid in the form of exemption from corporate income tax in respect of itsbusiness operations in the area of the Pomeranian Special Economic Zone,and the fact that the estimates related to the possibility of takingadvantage of this exemption have been substantiated, CIECH Soda PolskaS.A. is going to recognise a deferred tax in the financial result for Q3this year.

Following the principle of prudence, the maximumamount of such deferred tax subject to recognition has been decreased inorder to account for the uncertainty of estimates related to theavailable limit of public aid for the so-called single investmentproject; therefore, the amount of the recognised asset is approximatelyPLN 50 million.

The Issuer estimates that the impact of theaforementioned event on the consolidated net result of CIECH Group forQ3 will also amount to approx. PLN 50 M.

In Q1 and Q2 this year, CIECH Group generated a netprofit of PLN 102,238 thousand and PLN 162,079 thousand respectively.

The Consolidated Financial Statements will bepublished on 14 November 2016.