Concluding an agreement with City of Lublin

The managing board of the company Echo Investment SA (Issuer) informs that on 19th of November 2007,
the company Echo Investment SA (Company) concluded with Lublin Municipality (City) an agreement concerning realization of an investment planned by Echo Investment SA in Lublin.  

Pursuant to stipulations of this agreement, the City undertook, in the term of 36 months after the agreement’s conclusion, to take up any activities aiming at the change of local spatial arrangement of the City of Lublin
for the Echo Investment real property of the area of approximately 113 hectares, located in Lublin, Poligonowa street, near so-called Górki Czechowskie, enabling Echo Investment SA to accomplish its planned project.
On the aforesaid plot the Company is going to erect:

• a shopping-entertainment-service center (Center), of the total area for sale equalling 80.000 sq. m., whose realization shall be connected with reconstruction of communication system around the planned building, as an indispensable element of the Center’s operation,

• a complex of service-office buildings, as functional supplement of the Center’s offer,

• recreational-landscape park of the urban character.

After accomplishing of the aforesaid changes of spatial arrangemement, the company Echo Investment SA undertook to:

• prepare the conception and ful technical documentation together with a building permit for reconstruction
  of communication system in the closest vicinity of the planned Center and existing crossing of Solidarności Av. with Sikorskiego Av and Gen. Bolesława Ducha street,

• carry through the reconstruction of communication system and cover all the costs of this reconstruction,

• give over for use the rebuilt communication system before giving over for use the Center, and complete
  the realization of the park, being a part of the planned investment, not later than in the term of 36 months after the date of enforcement of Lublin City Council resolution approving changes of the local spatial arrangement,

• after accomplishing of reconstruction of communication system, to transfer, free of charge,
  the whole of the road system in favour of the City.

In case Echo Investment SA does not receive a building permit in the term of 24 months after the date
of enforcement of Lublin City Council resolution approving changes of the local spatial arrangement, Echo Investment SA shall have the right to retract from the agreement.

Estimated cost of reconstruction of communication system shall amount to approximately 80 million PLN. The detailed conditions of reconstruction of communication system shall be specified in a separate agreement (Road Agreement). In case the Parties do not conclude the Road Agreement in the term of 9 months after the date of concluding
of hereby agreement, Parties may retract from the hereby agreement.

Concluded agreement provides for payment of stipulated penalties on grounds of not keeping the specified terms
of realization of the Company’s obligations, whose value may amount to 80 million PLN. Payment of stipulated penalties excludes rights to claim for indemnity exceeding the amount of these stipulated penalties.

The agreement has been acknowledged as signifcant on the basis of the criterion of Issuer’s own means.

Legal basis: §5 section1 point 3 of a Decree by the Minister of Finance (Journal of Laws No. 209 item 1744) from 19th October 2005 on the current and periodical information published by issuers of securities.