Subject:

Conclusion of the industrial and trade agreement and establishment of a joint-venture company

Legal Basis:

Confidential information

Contents of the report:

The Management Board of URSUS S.A. hereby announces that on 19 July 2012 the company POL-MOT Holding S.A. in Warsaw (main shareholder of the company URSUS S.A.) and the company of the laws of Bosnia and Herzegovina Bobar Group d.o.o. in Bijeljina (main stockholder of the company ELVACO A.D.), in presence of the Prime Minister of the Republika Srpska in Bosnia and Herzegovina, concluded the agreement finalizing preliminary arrangements related to establishment of a joint-venture company, defining terms of starting industrial and trade cooperation. This agreement was signed also by the President of the Management Board of the Issuer and the CEO of the company ELVACO A.D. in Bijeljina.

Pursuant to the concluded agreement, the parties agreed that the mutual industrial and trade cooperation will be based on the limited liability company with the seat in Bijeljina, established by URSUS and ELVACO, acting under the laws of Bosnia and Herzegovina, in which URSUS and ELVACO will hold each one 50% of shares. In the agreement the parties together with URSUS and ELVACO agreed on the provisions of the articles of association of the joint-venture company and decided that its main business activity will be manufacturing and assembling agricultural tractors under the brand URSUS. New tractors will be offered in the Balkan market. Besides, the parties agreed the mutual obligations of URSUS and ELVACO to be fulfilled before registration of the joint-venture company, terms of cooperation and  timetable of organizational and legal actions aiming at registration of the company, as well as the fact that the company should start its operational activities in the fourth quarter of 2012.

Conclusion of the agreement constitutes implementation of the strategy of the Management Board of the Issuer, and fulfillment of its provisions will accelerate reconstruction of the position of the brand URSUS on the Balkan market.