Ciech S.A.

Report Publication Announcement • Feb 28, 2017

Contents of the report:

TheManagement Board of CIECH S.A. with its registered office in Warsaw (the"Issuer") announces that today a decision has been made to recognise, inthe consolidated financial statements of CIECH Group for 2016 (the"Consolidated Financial Statements"), which are currently being preparedby the Issuer, a recognised non-recurrent event affecting theConsolidated Financial Statements.

In reference to current report no. 34/2016 of 7November 2016, concerning the recognition by a subsidiary of the Issuer- CIECH Soda Polska S.A., in Q3 2016, a deferred tax of PLN 50,000, inconnection with the fulfilment of conditions to qualify for public aidin the form of exemption from corporate income tax in respect of itsbusiness operations in the area of the Pomeranian Special Economic Zone,the Management Board of the Issuer informs that the estimates related tothe possibility of taking advantage of the remaining amount of suchexemption by the subsidiary have been substantiated.

Accordingly, the subsidiary will recognise, in Q42016, an additional deferred tax asset amounting to approx. PLN 41 M.Thus, the amount of such recognised asset in 2016 will total approx. PLN91 M. The recognised asset will increase the consolidated net profit ofCIECH Group for 2016 by approx. PLN 91 M.

The consolidated net profit of CIECH Group for thefirst three quarters of 2016 amounted to PLN 419,887 K.

TheConsolidated Financial Statements are scheduled for publishing on 20March 2017.