Allocation of Shares of series K

Date of issue: 2010-12-30

Legal basis: Art. 56 clause 1 item 1 of the act on public offering  - confidential information

SUBJECT:
Allocation of Shares of series K

CONTENT OF THE REPORT:
Management Board of Izostal S.A. (Company) seated in Zawadzkie informs that on December 29, 2010 it passed a resolution on the allocation of Shares of series K of the nominal value of PLN 2,00 and the issue price of PLN 5.50 to the public.

The Company publishes the following information:

• The number of correctly placed and paid subscriptions in the Individual Tranche, with 1.000.000 (one million) Shares of series K offered, was 645 (six hundred forty-five) for the total number of 6.775.486 (six million seven hundred seventy five thousand four hundred and eighty six), Shares of the total value of 37.265.173 (thirty seven million two hundred sixty five thousand one hundred and seventy three zloty);
• The number of correctly placed and paid subscriptions in the Institutional Tranche, with 11,000.000 (eleven million) Shares of series K offered,  was 60 (sixty) for the total number of 11.000,000 (eleven million) Shares of the total value of PLN 60.500,000 (sixty million five hundred thousand);

Reduction rate in the Individual Tranche was 85.24 %, and 0.00% in the Institutional Tranche (Shares of series K were allocated based on the subscriptions).

The Company's Management Board informs that the Public Offering was successful and the total of 12.000.000 Shares of series K were allocated to investors i.e. all Shares offered to the public.
 
Detailed report fulfilling the requirements of §33 of the Regulation of the Minister of Finance of February 19, 2009 on current and periodic information submitted by issuers of securities, and conditions of recognizing information required by law of a non-EU state as equivalent will be published at a later date, however not later than within two weeks from the date of closing the subscription.

Dates written in capital, not defined in this regular report, have the meaning given in the Prospectus.

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director, Władysław Mrzygłód  2010-12-30
Management Board Vice President, Commercial Director Jacek Podwiński 2010-12-30

INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678