CPD : 1/2017 Establishment of Warranties

The Management Board of CPD SA (the 'Issuer') announces that the subsidiaries of the Issuer: IMES Poland sp. o.o. and 18 Gaston Investments spolka z ograniczona odpowiedzialnoscia sp. k. (the 'Company') on 30th of January 2017 granted warranties as a result of conditional sales agreements concluded with legal entities ('Buyer'), leading to the sale of rights to land located in Warsaw's Ursus district, as well as cooperation agreement ('Conditional Sales Agreement').

Warranty will be applied as a combined mortgage on the right to perpetual usufruct of held real estate for each full amount of the payment, the Buyer has to make in favor of the Company in respect of each mortgage.

Company submitted to enforcement under Art. 777 § 1 point 5 of the Civil Code, as to the obligation to repay a sum of money to the full amount of payment, the Buyer has to make in favor of the Company, as well as each of the parties will submit a written statement in the form required by applicable law, including permission to bring Buyer's claims concerning the conclusion of the Final Agreement to the land register kept for the property owned by them.

The total sale price of property rights and cooperation agreements, was set at a total amount of 82 million pln net ('Total Price').

Conclusion of Final Agreements for the transaction was predicted in stages between December 2017 and December 2019. The conclusion of Final Agreements is subject to a number of conditions precedent, mainly related to the preparation of infrastructure and the media in such a way that the implementation of housing projects in line with agreed objectives.

Within two working days of the conclusion of Conditional Sales Agreements Buyer is obliged to pay part of the price in the amount of 45 million pln (net) plus the appropriate VAT. Subsequent payments to a fixed total price will be implemented according to the schedule adopted by Buyer and Seller in the years 2017-2019.

Other provisions of the Agreements concluded by the Seller does not deviate from the standards generally applicable to such agreements.

The conclusion of final agreements performing included Conditional Sale Agreement, the Issuer will inform a separate current report.

Legal basis:

Art. 17 paragraph. 1 of the Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014. on market abuse (the Regulation on market abuse), and repealing Directive 2003/6 / EC of the European Parliament and of the Council and the Commission Directive 2003/124 / EC, 2003/125 / EC and 2004/72 /IN.

Signatures of persons representing the Company:

Elżbieta Wiczkowska, President of the Board, 30th of January 2017