Closing the public offering of shares of series K of Izostal S.A.

Date of issue: 2011-01-14

Legal basis:  Art. 56 clause 1 of the act on trading - current and periodic information

SUBJECT:
Closing the public offering of shares of series K of Izostal S.A.

CONTENT OF THE REPORT:
In reference to regular report no. 3/2010 of December 30, 2010, the Management Board of Izostal Spółka Akcyjna ("Company"), seated in Zawadzkie, hereby presents information on the closed public offering of 12.000.000 ordinary bearer shares of series K of the nominal value of PLN 2 each ("Offer").

1. Date of opening and closing the subscription:

Date of opening subscription for Shares of series K: December 21, 2010.
Date of closing subscription for Shares of series K: December 23, 2010.

2. Date of allocating securities:

December 29, 2010.

3. Number of securities under subscription:

The offer covered 12.000.000 Shares of series K.

4. Reduction rate:

Reduction rate in the Individual Tranche: 85,24 %
Reduction rate in the Institutional Tranche: 0.00 % (Shares of series K were allocated as per the subscriptions made. In case of institutional investors, shares were allocated to investors who were initially allocated shares in the amount arising from the initial allocation.

5. Number of securities covered by subscription:

Subscription covered 17.775.486 Shares of series K, incl.:
a. in the Individual Tranche: 6.775.486,
b. in the Institutional Tranche: 11.000.000.

6. Number of securities allocated under the subscription held:

12.000.000 Shares of series K were allocated, incl.:
a. in the Individual Tranche: 1.000.000,
b. in the Institutional Tranche: 11.000.000.

7. Price at which shares were purchased:

Issue price at which Shares of series K were purchased: PLN 5.50

8. Number of persons/entities who subscribed for securities under subscription:

678 investors made subscriptions, incl.:
a. in the Individual Tranche: 618,
b. in the Institutional Tranche: 60.

9. Number of persons/entities to whom securities were allocated under the subscription held:

Company shares were allocated to 678 investors , incl.:
a. in the Individual Tranche: 618,
b. in the Institutional Tranche: 60.

10. Names (business names) of sub-issuers, who subscribed to securities under agreements on sub-issue, with the number of securities they subscribed to, including the actual price of a security (issue price following the deduction of consideration for acquiring a security acquired by sub-issuer, in the performance of a sub-issue agreement):

Shares were not acquired by sub-issuers - the Issuer did not conclude agreements on sub-issue

11. Value of the subscription held understood as a product of the number of securities offered and the issue price:

Value of the subscription held was PLN 66.000.000 (amount before deducting  the costs of the Offering).

12. Estimated total costs included in the issue costs with information on cost levels as per categories:

Based on the Company's estimation, total costs incurred by the Company in connection with the Offering (the so-called issue costs) will amount to PLN 3,748 thou., incl.

• preparation and holding the offering: PLN 2,458 thou.,
• consideration of sub-issuers, separate for each sub-issuer: PLN 0 thou. (Company did not use services of sub-issuers),
• preparation of the prospectus, including costs of consulting services:  PLN 830 thou.
• offer promotion: PLN 460 thou.

Costs of issue will reduce the Issuer's reserve capital.

13.  Average cost of holding the subscription per a security covered by the subscription:

Based on the Company's estimates, the maximum cost of holding subscription will not exceed PLN 0.31 per one share.

Detailed legal basis: § 33 clause 1 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

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director, Władysław Mrzygłód  2011-01-14
Management Board Vice President, Financial Director Marek Mazurek 2011-01-14

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