Contracts of transfer of title to shares in subsidiaries

The management board of Echo Investment S.A. (hereinafter referred to as the Issuer) hereby reports that the following contracts of transfer of title to shares were concluded on October 25, 2011:

1/ Under the contract of transfer of title to shares in ‘Echo – Metropolis’ Sp. z o.o. with its registered office in Kielce, a subsidiary of the Issuer (hereinafter referred to as the Company), Barconsel Holdings Limited with its registered office in Nicosia (Cyprus), a subsidiary of the Issuer (hereinafter referred to as the Seller), sold 1,213,238 (one million two hundred thirteen thousand two hundred thirty eight) shares in the Company, with a nominal value of PLN 50 (fifty) per share and a total nominal value of PLN 60,661,900, to ‘Forum XXXIV Fundusz Inwestycyjny Zamknięty’ [Forum XXXIV Closed Investment Fund] with its registered office in Kraków (hereinafter referred to as the Buyer or the Fund) on October 25, 2011. The book value of the aforementioned shares in the books of Barconsel Holdings Limited amounted to EUR 15,241,575, which on the day of drawing up the report is an equivalent of PLN 66,738,284. Apart from the Seller, the owners of the Company are: the Buyer (796,760 shares until now), Echo Investment SA (1 share) and Grupa Echo Sp. z o.o., a subsidiary of the Issuer, (1 share).

2/ Under the contract of transfer of title to shares in ‘Astra Park’ Sp. z o.o. with its registered office in Kielce, a subsidiary of the Issuer (hereinafter referred to as the Company), Barconsel Holdings Limited with its registered office in Nicosia (Cyprus), a subsidiary of the Issuer (hereinafter referred to as the Seller), sold 738,000 (seven hundred thirty eight thousand) shares in the Company, with a nominal value of PLN 50 (fifty) per share and a total nominal value of PLN 36,900,000, to ‘Forum XXXIV Fundusz Inwestycyjny Zamknięty’ with its registered office in Kraków (hereinafter referred to as the Buyer or the Fund) on October 25, 2011. The book value of the aforementioned shares in the books of Barconsel Holdings Limited amounted to EUR 5,888,876, which on the day of drawing up the report is an equivalent of PLN 25,785,623. Apart from the Seller, the owners of the Company are: Projekt Echo – 69 Sp. z o.o. (1 share) and Echo Investment SA (800 shares).

3/ Under the contract of transfer of title to shares in Zakład Ogrodniczy ‘Naramowice’ Sp. z o.o. with its registered office in Pamiątkowo, a subsidiary of the Issuer (hereinafter referred to as the Company), Barconsel Holdings Limited with its registered office in Nicosia (Cyprus), a subsidiary of the Issuer (hereinafter referred to as the Seller), sold 189,900 (one hundred eighty nine thousand nine hundred) shares in the Company, with a nominal value of PLN 100 (one hundred) per share and a total nominal value of PLN 18,990,000, to ‘Forum XXXIV Fundusz Inwestycyjny Zamknięty’ with its registered office in Kraków (hereinafter referred to as the Buyer or the Fund) on October 25, 2011. The book value of the aforementioned shares in the books of Barconsel Holdings Limited amounted to EUR 260,013, which on the day of drawing up the report is an equivalent of PLN 1,138,520. Apart from the Seller, the owners of the Company are: Echo Investment SA (99 shares) and Olympus Prime Sp. z o.o., a subsidiary of the Issuer, (1 share).

4/ Under the contract of transfer of title to shares in ‘Projekt Echo -53’  Sp. z o.o. with its registered office in Kielce, a subsidiary of the Issuer (hereinafter referred to as the Company), Barconsel Holdings Limited with its registered office in Nicosia (Cyprus), a subsidiary of the Issuer (hereinafter referred to as the Seller), sold 1,029,279 (one million twenty nine thousand two hundred seventy nine) shares in the Company, with a nominal value of PLN 50 (fifty) per share and a total nominal value of PLN 51,463,950, to ‘Forum XXXIV Fundusz Inwestycyjny Zamknięty’ with its registered office in Kraków (hereinafter referred to as the Buyer or the Fund) on October 25, 2011. The book value of the aforementioned shares in the books of Barconsel Holdings Limited amounted to EUR 13,204,445, which on the day of drawing up the report is an equivalent of PLN 57,818,303. Apart from the Seller, the owners of the Company are: the Buyer (950,466 shares until now), Echo Investment SA (999 shares) and Grupa Echo Sp. z o.o. (1 share).

5/ Under the contract of transfer of title to shares in ‘Projekt Naramowice Poznań’  Sp. z o.o. with its registered office in Kielce, a subsidiary of the Issuer (hereinafter referred to as the Company), Barconsel Holdings Limited with its registered office in Nicosia (Cyprus), a subsidiary of the Issuer (hereinafter referred to as the Seller), sold 3,138,580 (three million one hundred thirty eight thousand five hundred eighty) shares in the Company, with a nominal value of PLN 50 (fifty) per share and a total nominal value of PLN 156,929,000, to ‘Forum XXXIV Fundusz Inwestycyjny Zamknięty’ with its registered office in Kraków (hereinafter referred to as the Buyer or the Fund) on October 25, 2011. The book value of the aforementioned shares in the books of Barconsel Holdings Limited amounted to EUR 34,322,104, which on the day of drawing up the report is an equivalent of PLN 150,286,197. Apart from the Seller, the owners of the Company are: Echo Investment SA (1,000 shares) and Grupa Echo Sp. z o.o. (20 shares).

The contracts of transfer of title to shares in the aforementioned subsidiaries have been concluded following the execution of a statement concerning the acquisition of the third issue investment certificates of the Fund issued by Forum XXXIV Fundusz Investycyjny Zamknięty with its registered office in Kraków and paying for them by a contribution in kind in the form of shares held in the above specified companies.
The Barconsel Holdings Limited subsidiary acquired a total of 11,764 investment certificates as part of the subscription for investment certificates issued by Forum XXXIV Fundusz Inwestycyjny Zamknięty.

The total share issue price of the acquired certificates amounted to PLN 296,241,048.
Barconsel Holdings Limited intends to treat the acquired FIZ certificates as a long-term equity investment.

There are no ties present between the Issuer or persons managing or supervising the Issuer and the Fund or persons managing it.

The Proxy of the Issuer executes managing functions in Barconsel Holdings Limited.
The aforementioned contracts and the values of assets involved have been considered significant on the basis of Issuer’s equity criteria.

The transfer of the above specified assets is an element of Echo Investment Capital Group’s restructuring, which shall allow for optimal management of the projects from Echo Investment Capital Group’s portfolio with regard to costs and taxes as well as the acquisition and execution of new projects.

Legal basis: §5(1.1) and (1.3) of the Regulation of the Minister of Finance (Journal of Laws no. 33 item 259) of February 19, 2009 concerning current and periodical information published by issuers of securities and terms of recognizing as equivalent information required by laws of a non-Member State.