Acquisition of an Australian company Waratah Engineering Pty Ltd

On 22 October 2009 Zabrzańskie Zakłady Mechaniczne S.A. /ZZM S.A./, a company of the KOPEX Group, signed a contract on acquisition of 100 per cent shares of the Australian company Waratah Engineering Pty Ltd at a total value of AUD 3,000,000.00.

Scope of activity of the newly acquired company is manufacture of mining machinery and equipment which matches perfectly with activity profile of the KOPEX Group. It will enhance product offer of the Group. Share acquisition of this Australian company is one of the development strategy element of the KOPEX Group which aims at increasing its competitiveness in the whole region of South-East Asia, Australia, New Zealand and also in South Africa. According to the opinion of the Management Board of ZZM S.A. the acquisition in question is of strategic importance for ZZM S.A., considering sale strategy of this company on the Australian market, and Waratah will play a key role in sale and service of mining equipment on this market.back