RANK PROGRESS : Current Report No. 52/2015

Pledge created on the Issuer's account in a subsidiary undertaking

Legal basis

Art. 56.1.2 of the Act on Public Offering - current and periodic information

The Management Board of Rank Progress S.A. (the 'Issuer') reports that on 2 December 2015 it became aware of a decision of the District Court for the Capital City of Warsaw in Warsaw, XI Commercial Division of Register of Pledges on the entry of a registered pledge made on 30 November 2015 on a bank account belonging to the Issuer's subsidiary undertaking - Progress XXIII Sp. z o.o. having its registered seat in Warsaw ('Progress XXIII') with the maximum security value of up to EUR 30,000,000.00 (representing the equivalent of PLN 127,917,000.00 according to the average exchange rate of NBP /the National Bank of Poland/ effective on 30 November 2015).

The pledge was established to secure the repayment of liabilities to Bank BPH S.A. having its registered seat in Gdańsk (the 'Bank') arising from the loan agreement concluded between the Bank and Progress XXIII of which the Issuer informed in its Current Report No. 50/2015 of 25 November 2015. The cash kept on the pledged account is in Polish currency (PLN). As at the date of establishing the pledge, the cash available on the account totaled PLN 243,001.00.

The assets on which the above registered pledge was created in favour of the Bank are considered significant, as the value of the security exceeds the equivalent of EUR 1 million.

According to the Issuer's best knowledge there are no links between the Issuer and its management or supervisory staff and the Bank for which the pledges were created and its management staff.

Legal basis

Art. 5.1.1 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent the information required under the provisions of the law of a non-member state.