ZUE : Current report 64/2016

CURRENT REPORT 64 / 2016 29 December 2016

Legal basis: Art. 17.1 of the MAR -Confidential Information. Subject: Selection of the Most Economically Advantageous Tender. Content:

The Management Board of ZUE S.A. with registered office in Cracow (the "Company")inform that they learnt on 29 December 2016 about the selection on 29 December 2016 by PKP Polskie Linie Kolejowe S.A. (the "Contracting Authority") of the tender submitted by the Company as the most economically advantageous offer in the tender procedure for design and construction services in connection with the following project: "Works on the railway lines no. 14 and 811 of the Łódź Kaliska- Zduńska Wola- Ostrów Wielkopolski section,stage I: Łódź Kaliska - Zduńska Wola."

The Company informed about the submission of the lowest price tender in the said tender procedure in the current report 48/2016 of 7 October 2016.

Contracting Authority: PKP Polskie Linie Kolejowe S.A.

Net value of the tender submitted by the Company: PLN 281.0m. Gross value of the tender submitted by the Company: PLN 345.6m. Completion date: 38 months of the contract conclusion date.

Tender assessment criteria:

1. Total gross price -50%;

2. Completion date -30%; and

3. Term of warranty -20%.

As for the total gross price, the Company has submitted the most economically advantageous tender. As for the completion date and the term of warranty, the Company'soffer is analogous to tenders submitted by other tender participants.

If the selection of the tender submitted by the Company is not appealed against by the date specified by the law, a contract will be entered into with the Contracting Authority. The Company will inform about the contract conclusion in a relevant current report.