Concluding the Subsidy Agreement with the Minister of Economy.

Date  of issue: 2011-04-29

Legal basis: Art. 56 Clause 1 Item 1 of the Offering Act - confidential information.

SUBJECT:
Concluding the Subsidy Agreement with the Minister of Economy.

CONTENT OF THE REPORT:
Izostal S.A. Management Board (the Company) informs that on April 29, 2011 Izostal S.A. concluded the Subsidy Agreement with the Minister of Economy, No. PO IG.04.05.02-00-003/10-00, under the Sub-Activity 4.5.2 „Support for Investments in the Modern Service Area", Activity 4.5 „Support for Investments Vital for Economy", Priority Axis 4 „Investing in Innovative Projects",  Operational Program "Innovative Economy" 2007-2013.

The subject of the contract is granting the Company a subsidy to the maximum amount of PLN 7,262,500.00, to implement the Project „Construction of the Research and Development Center for Technology and Steel Products", financed with the public means, within the Operational Program "Innovative Economy".  The total cost of the Project totals PLN 19,920,500.00 gross amount.

The deadline for the completion of activities within the scope of agreement is on December 23, 2011.

The aim of the Project is to increase the Company production capacity and to diversify the production based on the production process modernization as well as to extend the offer of products and services, including innovative technological solutions, in effect of the ongoing R&D process.

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-04-29
Management Board Vice President, Commercial Director Jacek Podwiński 2011-04-29

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