date submitted: 2006-09-13 (issuer's full name)

Elbudowa PSr THE SECURITIES AND EXCHANGE COMMISSION Consolided Bi-Annual Report PSr 2006 (Pursuant to 86 item 2 and 87 item 1 of the Regulion of the Minister of Finance of 19 October 2005 - Journal of Laws No 209 item 1744) for issuers of securities with the business profile of production, construction, trade or service for six months of the financial year 2006 period from 2006-01-01 to 2006-06-30 including the condensed consolided financial stements according to IFRS currency PLN (Polish zloty) and the condensed financial stements according to IFRS currency PLN (Polish zloty) de submitted: 2006-09-13 year Elektrobudowa Spółka Akcyjna Elbudowa (issuer s abridged name) (issuer's full name) service construction (business sector acc. To the WSE classificion) 40-246 Kowice (postal code) (place) Porcelanowa 12 (street) (32) 25 90 100 (32) 25 90 216 (telephone) (fax) elbudowa@elbudowa.com.pl www.elbudowa.com.pl (e-mail) (www) 634-01-35-506 271173609 (Tax Identificion Number NIP) PricewerhouseCoopers (auditing company) SELECTED FINANCIAL DATA in thousands of PLN (REGON) (number) in thousands of EURO H1 / 2006 H1 / 2005 H1 / 2006 H1 / 2005 da referring to the condensed consolided financial stements I. Revenues 158 624 124 920 40 671 30 614 II. Opering profit (loss) 6 154 3 423 1 578 839 III. Gross profit 6 112 3 421 1 567 838 IV. Net profit 4 490 1 903 1 151 466 V. Net profit tributable to the Company shareholders 3 943 1 574 1 011 386 VI. Net profit tributable to minority holders 547 329 140 80 VII. Cash flows from opering activities 5 820-7 740 1 492-1 897 VIII. Cash flows from investing activities -3 211-2 637-823 -646 IX. Cash flows from financing activities 4 536 7 982 1 163 1 956 X. Net increase/decrease in cash 7 145-2 395 1 832-587 XI. Total assets 187 915 165 358 46 474 40 929 XII. Liabilities 117 643 101 907 29 095 25 224

XIII. Non-current liabilities 4 932 2 442 1 220 605 XIV. Current liabilities 112 711 99 465 27 875 24 619 XV. Equity 70 272 63 451 17 379 15 705 XVI. Equity tributable to Company shareholders 68 132 62 395 16 850 15 444 XVII. Share capital 24 821 24 821 6 139 6 144 XVIII. Minority interest 2 140 1 056 529 261 XIX. Number of shares (pcs) 3 971 000 3 971 000 3 971 000 3 971 000 XX. Book value per share (in PLN / EUR) 17,70 15,98 4,38 3,96 Da referring to the condensed financial stements XXI. Revenues 147 878 125 813 37 915 30 833 XXII. Opering profit 4 342 2 575 1 113 631 XXIII. Gross profit 5 149 2 573 1 320 631 XXIV. Net profit 4 037 1 287 1 035 315 XXV. Cash flows from opering activities 1 247-9 253 320-2 267 XXVI. Cash flows from investing activities -2 784-2 416-714 -592 XXVII. Cash flows from financing activities 4 536 8 007 1 163 1 962 XXVIII. Net increase/decrease in cash 2 999-3 662 769-897 XXIX. Total assets 175 086 159 759 43 302 39 543 XXX. Liabilities 107 723 97 919 26 642 24 237 XXI. Non-current liabilities 4 932 2 442 1 220 605 XXII. Current liabilities 102 791 95 477 25 422 23 632 XXIII. Equity 67 363 61 840 16 660 15 306 XXXIV. Share capital 24 821 24 821 6 139 6 144 XXXV. Number of shares (pcs) 3 971 000 3 971 000 3 971 000 3 971 000 XXXVI. Book value per share (in PLN / EUR) 16,96 15,57 4,19 3,85 Pursuant to binding regulions the Report must be submitted to the Polish Securities and Exchange Commission, the Warsaw Stock Exchange and the informion agency 2

PricewerhouseCoopers Sp. z o.o. Oddział w Kowicach ul. Sowińskiego 46 40-018 Kowice Polska Telefon +48 (32) 604 0200 Faks +48 (32) 604 0300 http://www.pwc.com/pl TRANSLATORS EXPLANATORY NOTE The following document is a free translion of the registered auditor s report of the below-mentioned Polish Company. In Poland stutory accounts must be prepared and presented in accordance with Polish legislion and in accordance with the accounting principles and practices generally used in Poland. The accompanying transled report has not been reclassified or adjusted in any way to conform to accounting principles generally accepted in countries other than in Poland, but certain terminology current in Anglo-Saxon countries has been adopted to the extent practicable. In the event of any discrepancy in interpreting the terminology, the Polish language version is binding. Independent Registered Auditor s Report on the review of the bi-annual consolided financial stements for the period 1 January 2006 30 June 2006 To the Shareholders and the Supervisory Board of Elektrobudowa S.A. We have reviewed the tached bi-annual consolided financial stements of the Elektrobudowa S.A. Group (hereinafter referred to as the Group) in which the parent company is Elektrobudowa S.A. (hereinafter referred to as the Company), Porcelanowa 12, Kowice, which comprise: (a) the consolided balance sheet as 30 June 2006, showing total assets and total liabilities and equity of PLN 187,915 thousand; (b) the consolided income stement for the period from 1 January to 30 June 2006, showing a net profit of PLN 4,490 thousand; (c) the stement of changes in consolided equity for the period from 1 January to 30 June 2006, showing a decrease in equity of PLN 1,321 thousand; (d) the consolided cash flow stement for the period from 1 January to 30 June 2006, showing net inflows of PLN 7,145 thousand; (e) notes to the financial stements comprising informion on the accounting policies adopted and additional notes and explanions. The Company s Management Board is responsible for preparing the bi-annual consolided financial stements in accordance with Internional Financial Reporting Standards as adopted by the European Union reled to interim financial reporting (IAS 34). Our responsibility was to present a report on these bi-annual consolided financial stements based on our review.

Independent Registered Auditor s Report on the review of the bi-annual consolided financial stements for the period 1 January 2006 30 June 2006 To the Shareholders and the Supervisory Board of Elektrobudowa S.A. (cont d) We have performed our review in accordance with the auditing standards issued by the Nional Council of Registered Auditors, applicable in the Republic of Poland. Under these standards, we are obliged to plan and perform the review to obtain reasonable assurance th the bi-annual consolided financial stements are free of merial irregularities. We have performed our review on the basis of an analysis of the above-mentioned bi-annual consolided financial stements, a review of the books of account and the informion obtained from the Company s Management Board and employees of the Group. The scope of work performed was significantly less than the scope of an audit, because our review was not aimed expressing an opinion on the truth and fairness of the bi-annual consolided financial stements. This report does not constitute an audit opinion on the consolided financial stements within the meaning of the Accounting Act of 29 September 1994 (Journal of Laws of 2002 No. 76, item 694 with subsequent amendments). Our review has not revealed a need to make any significant changes to the tached bi-annual consolided financial stements to ensure th they give a true, fair and clear view of the Group s financial standing as 30 June 2006 and of the results of its operions for the period from 1 January to 30 June 2006 in accordance with the Internional Accounting Standard 34 Interim Financial Reporting On behalf of PricewerhouseCoopers Sp. z o.o. and the person conducting the review: Tomasz Reinfuss Member of the Management Board Registered Auditor Registered Audit Company No. 90038/7274 No. 144 Kowice, 13 September 2006 1

ELEKTROBUDOWA SA GROUP The Interim Consolided Financial Stements period from 1 January 2006 to 30 June 2006 2

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 Index to the consolided financial stements CONSOLIDATED BALANCE SHEET... 5 CONSOLIDATED INCOME STATEMENT... 6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY... 7 CONSOLIDATED CASH FLOW STATEMENT... 9 1. General informion... 10 1.1. Composition of the Group and its principal activity... 10 1.2 Going concern concept... 11 2. Summary of significant accounting policies... 12 2.1 Stement of compliance with legislion... 12 2.2. Basis of preparion... 12 2.3 Consolidion... 12 2.4 Foreign currency translion... 13 2.5 Property, plant and equipment... 14 2.6 Intangible assets... 15 2.7 Impairment of assets... 15 2.8 Investments... 15 2.9 Leasing... 17 2.10 Inventories... 17 2.11 Construction contracts... 17 2.12 Trade receivables... 18 2.13 Cash and cash equivalents... 18 2.14 Fixed assets held for trading and discontinued operions... 18 2.15 Share and reserve capital... 19 2.16 Loans and borrowings... 19 2.17 Income taxes... 19 2.18 Employee benefits... 20 2.19 Provisions... 21 2.20 Trade and other liabilities... 21 2.21 Revenue recognition... 22 2.22 Method of establishing the financial result... 22 2.23 Financial risk management... 23 2.24 Segment reporting... 23 2.25 New accounting standards and interpretions... 24 3. Operions discontinued in the reporting period or to be discontinued in the next period... 24 4. Changes in presention of the consolided financial stements... 25 5. Segment informion... 28 6. Property, plant and equipment... 33 7. Intangible assets... 38 8. Joint ventures... 42 2

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 9. Available-for-sale financial assets... 42 10. Deriviive financial instruments... 46 11. Trade and other receivables... 46 11.1 Trade and other receivables recognised in non-current assets... 47 11.2 Trade and other receivables recognised in current asssets... 48 11.3 Non-current prepayments... 50 12. Inventories... 51 13. Cash and cash equivalents... 51 14. Short-term prepayments... 52 15. Share capital... 53 16. Reserve capital... 54 17. Net profit tributable to Elektrobudowa SA equity holders... 55 18. Trade and other payables... 55 18.1 Non-current payables... 55 18.2 Trade and other payables... 56 19. Loans and borrowings... 58 20. Deferred income tax... 61 20.1 Deferred income tax assets... 62 20.2 Provision for deferred income tax... 64 21. Provisions for liabilities and other charges... 66 22. Accrued expenses... 67 23. Sales revenues... 68 24. Construction contracts... 69 24.1 Amounts due from customers for construction contract work... 69 24.2 Amounts due to customers for contract work... 69 25. Expenses by nure... 70 26. Other gains (losses) net... 71 27. Finance income (expenses) net... 71 28. Income tax... 72 29. Earnings per share... 74 30. Dividend per share... 75 31. Cash flow stement... 75 32. The Management Board and the Supervisory Board... 77 33. Polish zloty exchange res... 78 34. Reled party transactions... 79 3

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 36. Investments... 80 37. Contingencies... 80 38. Events after the balance sheet de... 82 39. Employees... 83 40. Changes in the applied accounting standards... 83 41. Essential estimes and assumptions... 83 42. Additional notes... 84 4

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Consolided balance sheet as Note 30 June 2006 31 December 2005 * 30 June 2005 * ASSETS Fixed assets 43 640 43 868 42 850 Property, plant and equipment 6 31 204 30 142 29 734 Intangible assets 7 2 393 2 207 1 900 Available-for-sale financial assets 9 879 879 879 Trade and other receivables 11.1 8 675 9 707 9 722 Deferred income tax assets 20 0 441 122 Non-current prepayments and accrued income 11.3 489 492 493 Current asssets 144 275 131 540 122 508 Inventories 12 22 316 6 197 17 486 Trade and other receivables 11.2 81 560 94 146 83 752 Derivive financial instruments 10 381 181 0 Current prepayments and accrued income 14 784 262 428 Amount due from construction contracts 24.1 21 985 20 650 14 164 Cash and cash equivalents 13 17 249 10 104 6 678 Total assets 187 915 175 408 165 358 EQUITY AND LIABILITIES Equity 70 272 71 593 63 451 Share capital 15 24 821 24 821 24 821 Reserve capital 16 56 661 58 282 58 396 Foreign currency translion of subsidiaries 6 (82) (44) Prior years' profit (loss) (17 299) (22 215) (22 352) Net profit (loss) 17 3 943 9 280 1 574 Total equity tributable to the Company's equity holders 68 132 70 086 62 395 Minority interest 2 140 1 507 1 056 Liabilities Non-current liabilities 4 932 3 929 2 442 Deferred income tax liabilities 20 639 0 0 Employee benefit obligions 21 1 767 2 040 1 209 Trade and other payables 18.1 2 526 1 889 1 233 Current liabilities 112 711 99 886 99 465 Trade and other liabilities 18.2 78 482 65 577 59 727 Corpore income tax obligions 338 1 359 0 Loans, borrowings and debt securities 19 21 377 16 415 30 507 Provisions 21 575 634 613 Accrued expenses 22 1 890 3 224 1 234 Amounts due to construction contracts customers 24.2 10 049 12 677 7 384 Total liabilities 117 643 103 815 101 907 Total equity and liabilities 187 915 175 408 165 358 *rested da The notes on pages 10 to 85 are an integral part of these consolided financial stements. 5

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Consolided income stement six months ended 30 June Note 2006 2005* Revenues 23 158 624 124 920 Cost of products, goods and merials sold 25 (148 511) (115 751) Gross profit on sales 10 113 9 169 Selling costs (982) (326) Administrive expenses (3 723) (4 058) Other gains (losses) - net 26 746 (1 362) Opering profit 6 154 3 423 Finance cost - net 27 (42) (2) Profit before tax 6 112 3 421 Income tax expense 28 (1 622) (1 518) Profit for the period 4 490 1 903 of which: Equity holders of the Company 3 943 1 574 Minority interest 547 329 Earnings per share for profit tributable to the equity holders of the Company during the year (expressed in PLN per share) - basic 29 0,99 0,40 - diluted 29 0,96 0,39 * rested da The notes on pages 10 to 85 are an integral part of these consolided financial stements. 6

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Consolided stement of changes in equity Share capital Reserve capital from share premium Attributable to equity holders of the Company Other reserve capital Prior years' profit (loss) Net profit Foreign currency translion differences of subsidiaries Attributable to minority interest Total equity 1 January 2006 24 821 10 369 47 913 (12 935) 0 (82) 1 507 71 593 currency translion differences 0 0 0 0 0 88 86 174 net proft for the period 0 0 0 0 3 943 0 547 4 490 Total recognised income for H1 2006 0 0 0 0 3 943 88 633 4 664 profit distribution 0 0 2 820 (2 820) 0 0 0 0 coverage of prior years' loss 0 0 (4 441) 4 441 0 0 0 0 dividend payment 0 0 0 (5 957) 0 0 0 (5 957) dividend servicing 0 0 0 (28) 0 0 0 (28) 30 June 2006 24 821 10 369 46 292 (17 299) 3 943 6 2 140 70 272 Share capital Reserve capital from share premium Attributable to equity holders of the Company Other reserve capital Prior years' profit (loss) Net profit Foreign currency translion differences of subsidiaries Attributable to minority interest Total equity 1 January 2005 24 821 10 369 46 801 (17 126) 0 (110) 664 65 419 currency translion differences 0 0 0 0 0 28 28 56 net proft for the period 0 0 0 0 9 280 0 815 10 095 Total recognised income for 2005 0 0 0 0 9 280 28 843 10 151 profit distribution 0 0 1 112 (1 112) 0 0 0 0 dividend payment 0 0 0 (3 971) 0 0 0 (3 971) dividend servicing 0 0 0 (6) 0 0 0 (6) 31 December 2005 24 821 10 369 47 913 (22 215) 9 280 (82) 1 507 71 593 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 7

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Share capital Reserve capital from share premium Attributable to equity holders of the Company Other reserve capital Prior years' profit (loss) Net profit Foreign currency translion differences of subsidiaries Attributable to minority interest Total equity 1 January 2005 24 821 10 369 46 801 (17 126) 0 (110) 664 65 419 currency translion differences 0 0 0 0 0 66 63 129 net proft for the period 0 0 0 0 1 574 0 329 1 903 Total recognised income for H1 2005 0 0 0 0 1 574 66 392 2 032 profit distribution 0 0 1 226 (1 226) 0 0 0 0 dividend payment 0 0 0 (3 971) 0 0 0 (3 971) dividend servicing 0 0 0 (29) 0 0 0 (29) 30 June 2005 24 821 10 369 48 027 (22 352) 1 574 (44) 1 056 63 451 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 8

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Consolided cash flow stement six months ended 30 June Note 2006 2005* Cash flows from opering activities Net profit 4 490 1 903 Amortision 2 251 2 580 Interest and share in profit (dividends) 406 1 021 Gains (loss) from investing activities (74) (288) Change due to deferred income tax 1 080 1 286 Change in inventories (16 119) (5 166) Change in trade and other receivables 31 13 462 14 215 Change in liabilities, except loans and borrowings 31 8 200 (12 671) Income tax paid (1 361) (1 525) Change in current accruals (1 856) 32 Change in non-current accruals 3 3 Change in settlements of construction contracts (3 963) (9 049) Other adjustments 31 (699) (81) Net cash (used in) / genered from opering activities 5 820 (7 740) Cash flows from investing activities Disposal of intangible assets and property, plant & equipment 334 588 Purchase of intangible assets and property, plant & equipment (3 545) (3 225) Net cash fused in investing activities (3 211) (2 637) Cash flows from financial activities Loans and borrowings 6 948 9 025 Redemption of debt securities (1 986) 0 Payment of financial lease commitments (28) (21) Interest (398) (1 022) Net cash genered from financial activities 4 536 7 982 Net decrease /increase in cash 7 145 (2 395) Cash beginning of period 10 104 9 073 Cash end of period 31 17 249 6 678 * rested da The notes on pages 10 to 85 are an integral part of these consolided financial stements. 9

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements 1. General informion 1.1. Composition of the Group and its principal activity The ELEKTROBUDOWA SA Group is composed of three entities: The Parent - Elektrobudowa SA with its registered office in Kowice, ul. Porcelanowa 12, 40-246 Kowice. Elektrobudowa SA is a joint stock company established and acting according to the Polish law. The joint stock company was creed through transformion of the ste-owned company named Przedsiębiorstwo Montażu Elektrycznego Elektrobudowa based in Kowice. The transformion act was made on 9 January 1992 in the form of a notary deed (Repertory No. 225/95) by the Notary Office no.18 in Warsaw run by the notary public Paweł Błaszczak. The Company was entered in Division B under number 7682 to the Commercial Register of the District Court, X Register Department Kowice, on the basis of valid decision by this Court issued on 3 February 1992 (Ref. number RHB 7682 VII of the Central Commercial Register 248/92). At present the court of registrion for the Company is the District Court in Kowice, Business Department of the Nional Court Register, with the reference number KRS 000007425. Principal activity of the Company according to the Polish Classificion of Activities (PKD 4531 A) is executing of electrical installions in building and structures. A sector according to the Warsaw Stock Exchange classificion: building. Shares of the Parent are quoted on the Warsaw Stock Exchange. The business activity of Elektrobudowa SA includes: comprehensive electrical installion works as provided in all newly built, extended and modernized power stions and industrial facilities, supply of electric power equipment, mainly the energy transmission and distribution equipment, designing, engineering, testing and commissioning services. A subsidiary - KRUELTA Sp. z o. o. (Ltd.) with its registered office 17a, Magnitogorska Street in Sankt Petersburg. Elektrobudowa SA holds 51% interest in KRUELTA Sp. z o.o., which represents 51% of KRUELTA equity. According to the company Articles certain resolutions of the Annual General Meeting has to be adopted unanimously, and passing others requires not less than 2/3 of the total number of votes. The requirement has been introduced to secure Elektrobudowa SA against decisions unfavourable for them, which otherwise might be taken by the Russian partner, Tavrida. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 10

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) ELEKTROBUDOWA SA controls opering and financial policy of Kruelta, as: - Chairman of the Supervisory Board is elected from candides indiced by Elektrobudowa SA, - the Supervisory Board of Kruelta consists of two representives of Elektrobudowa and two representives of Tavrida, - in the case of an equal number of votes, the chairman of the Supervisory Board has the casting vote. In the opinion of the Management Board of Elektrobudowa SA the conditions presented above are decisive for consolidion of Elektrobudowa SA and Kruelta by the full method. Principal business of KRUELTA is the assembly and sales of medium voltage switchgears in the Russian market. This offer is to be completed with the sale of low voltage switchgears and mobile containerized substions. A subsidiary - KONIP Sp. z o.o. (Ltd) with its registered office in Kowice, 12, Porcelanowa St., 40-246 Kowice. Elektrobudowa SA holds 100% interest in the equity of KONIP Sp. z o.o. KONIP Sp. z o.o. administers the real property owned by Elektrobudowa S.A. or in perpetual usufruct by the Parent. The scope of their business particularly includes maintenance and administrion of building and structures, renting the useful areas, fire protection services, cleaning the rooms and area as well as industrial protection, providing telecommunicion services, maintaining the Parent s archives and the reception service. 1.2 Going concern concept The entities in the Group will continue in operional existence for the unspecified time. The consolided financial stements have been prepared with the assumption of continuion of business operions in the foreseeable future by the entities of the Group and th there are no circumstances indicing th the continuion of operions by the entities of the Group is risk. Among the estimes done as the balance sheet de there are no such estimes which could imply a significant risk of involving merial corrections of balance sheet values of assets and liabilities during the next financial year. If, after preparion of the annual financial stements an entity of the Group is informed about events which have substantial effect on this report, or which make the assumption of business continuion by the entity unjustified, the Management Board of Elektrobudowa SA will be entitled to introduce adjustments to the financial stements up to the moment of their approval. This does not rule out the possibility of introducing retrospective changes to the financial stements reled to adjustment of errors, or changes in accounting policies as per IAS 8 in the ler periods. In the opinion of the Management Board of Elektrobudowa SA there are no circumstances posing a thre to the continuity of business operions. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 11

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 2. Summary of significant accounting policies 2.1 Stement of compliance with legislion The report of Elektrobudowa SA Group for the H1 ended 30 June 2006 has been prepared in conformity with the Regulion of the Minister of Finance of 19 October 2005 on current and periodical informion provided by issuers of securities. 2.2. Basis of preparion These consolided financial stements of the Group has been prepared in accordance with the Internional Financial Reporting Standards (IFRS) on interim reporting (IAS 34). The present financial stements have been prepared under the historical cost convention, with the exception of revaluion of derivive instruments shown fair value. Some key accounting estimes are necessary for preparing the stements in compliance with IFRS. The Management Board has to take a number of subjective decisions concerning the applicion of the Group accounting policies. More compliced areas, areas which require a subjective judgment or areas in which the assumptions and appraisals are significant for the financial stements as a whole, have been described in additional comments to the financial stements (Notes: 9, 11.2, 15, 21, 24). 2.3 Consolidion Subsidiaries Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and opering policies generally accompanying a shareholding of more than one half of thee voting rights in the company governing bodies. The existence and effect of potential voting rights th are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolided from the de on which control is transferred to the Group. They are deconsolided from the de on which control ceases. In the Group there are no entities excluded from consolidion. The purchase method of accounting is used to account for the investment in subsidiaries in separe financial stements. Separe financial stements of the reled parties subject to consolidion have been prepared in accordance with the unified accounting standards. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 12

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Inter-company transactions, balances and unrealized gains on transactions between Group companies are elimined. Unrealised losses are also elimined unless the transaction provides evidence of an impairment of the asset transferred. The parent s and other consolided entities share of the subsidiaries, with th portion of net assets of subsidiaries, measured their fair value, which reflects the parent s and other consolided entities share in the reled parties, the de of taking control by the Group, is elimined. 2.4 Foreign currency translion a) Functional and presention currency Items included in the financial stements of each of the Group s entities are measured using the currency of the primary economic environment in which the entity operes (the functional currency ). The consolided financial stements are presented in thousands of Polish zlotys. Polish zloty (PLN) is the functional and presention currency both of ELEKTROBUDOWA SA and the Elektrobudowa SA Group. b) Transactions and balances Foreign currency transactions are transled into the functional currency using the exchange re prevailing the des of the transactions as follows: - disposal of foreign currency and repayment of receivables transactions are transled the buying re applied by the bank used by the Group: - purchase of foreign currency and repayment of payables transactions are transled the selling re applied by the bank used by the Group: - other transactions are transled average exchange re for each currency announced by the Nional Bank of Poland, unless customs documents quote another exchange re; - assets and liabilities the balance sheet de are transled the average Exchange re for each currency announced by the Nional Bank of Poland. Gains and losses from such transactions and from the translion the year-end of monetary assets and liabilities denomined in foreign currencies are recognized in the income stement, except where hedge accounting is applied. c) Translion of balance sheet items and income stement items The results and financial position of all Group entities (none of which has the currency of a hyperinflionary economy) th have a functional currency different from the presention currency are transled into the presention currency as follows: The notes on pages 10 to 85 are an integral part of these consolided financial stements. 13

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) assets and liabilities in each presented balance sheet are transled the closing re the de of th balance sheet; income and expenses for each income stement are transled average exchange re for each currency, which is the arithmetic mean of average res on the last day of each month of the reporting period, unless this average is not a reasonable approximion of the cumulive effect of the res prevailing on the transaction des, in which case income and expenses are transled the des of the transactions; all resulting exchange differences are recognized as a separe component of equity. 2.5 Property, plant and equipment All property, plant and equipment is show cost less subsequent depreciion and impairment). Depreciion on assets is calculed using the straight-line method according to res which reflect their estimed useful life. Periods of economic usability of the assets are as follows: Applied depreciion res: Buildings Plant and machinery Vehicles Other 25-40 years 3-15 years 5-7 years 4-10 years Subsequent expenses are recognised in the carrying amount of each item or included as a separe asset (as approprie), only when it is probable th the Company will gain future economic benefits associed with the item and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income stement during the financial period in which they are incurred. At each balance sheet de the value of each item is reviewed in order to estime if it is not greer than its recoverable amount (if it is greer, the asset s carrying amount is written down to its recoverable amount. The review also covers the adopted depreciion method and establishing whether the depreciion period is adeque for the estimed distribution in time of economic benefits from the asset. Property, plant and equipment under construction are measured according to costs incurred. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 14

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 2.6 Intangible assets Intangible assets are measured purchase cost or cost of their production. Costs incurred on development projects rele to the design and testing of new or improved products, when it is probable th the project will be a success, considering the commercial and technological feasibility and costs can be measured reliably. Development costs th have a final useful life are amortised on a straight-line basis over the period of 3 to 5 years. Acquired computer software licences are capitalised on the basis of costs incurred to acquire and bring to use. Costs are amortised on a straight-line basis over 2 years. Costs associed with maintaining computer software programmes are recognized as an expense as incurred; Other property rights are recognized costs of acquiring and amortised on a straight-line method over the estimed useful life (up to 5 years). 2.7 Impairment of assets Assets th are subject to amortision are tested for impairment whenever events or changes in circumstance indice th the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. For the purposes of assessing impairment assets are grouped the lowest levels for which there are separely identifiable cash flows. 2.8 Investments The Group classifies its investments in the following cegories: financial assets fair value through profit or loss, loans given and receivables, investments held to murity and available-for-sale financial assets. The classificion depends on the purpose for which the investments were acquired. Management of each Group entity determines the classificion of its investments initial recognition and re-evalues this classificion every reporting de. Financial assets and liabilities fair value through profit or loss The cegory falls into two sub-cegories: financial assets held for trading and those shown fair value through profit or loss. A financial asset is classified in this cegory if acquired principally for the purpose of reselling in the short term or if so designed by the Management Boards of the Group s entities. Assets in this cegory are classified as current if they are either held for trading or are expected to be realized within 12 months of the balance sheet de. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 15

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Loans and receivables Loans and receivables are non-derivive financial assets with fixed or determinable payments th are not quoted in an active market. They arise when the Group directly provides the client with money, goods or services with no intention to trade with the receivables. They are included in current assets, with separe recognition of those items which murities are greer than 12 months after the balance sheet de. Loans and receivables are included in trade and other receivable in the balance sheet. Investments held to murity Held-to-murity investments are non-derivive financial assets with fixed or determinable payments and fixed murities th the Group entities managements have the positive intention and ability to hold to murity. They are classified as non-current assets except those items which murity is shorter than 12 months after the balance sheet de and classified as current assets. Available-for-sale financial assets Available-for-sale financial assets are non-derivives th are either designed in this cegory or not classified elsewhere. They are included in non-current assets unless managements of the Group entities intend to dispose of the investment within 12 months of the balance sheet de. Purchases and sales of investments are recognized on trade de the de on which the Group commits to purchase or sell the asset. Investments are initially recognized fair value plus transaction costs for all financial assets not carried fair value through profit or loss. Investments are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets fair value through profit or loss are subsequently carried fair value. Granted loans and receivables and held-to-murity investments are carried amortised cost using the effective interest re. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and also for unlisted securities), the Group establishes fair value by using valuion techniques. These include the use of recent arm s length transactions reference to other instruments th are substantially the same, and discounted cash flow analyses and option valuion models refined to reflect the issuer s specific circumstances. If the fair value of investment, for which there is no active market, is not possible to establish in a reliable way, the investment is valued according to its purchase price. The Group assesses each balance sheet de whether there is objective evidence th a financial asset or a group of financial assets is impaired. In determining whether the securities are impaired, a significant or prolonged decline in the fair value of the security below the cost is considered. If any such evidence exists, the difference between the acquisition cost and the current fair value of those assets is recognized in the income stement. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 16

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 2.9 Leasing The Group is a party to lease agreements against which another party s property, plant and equipment is taken over for use against charge or for taking proceeds through the agreed time. In case of financial lease where the substantially the whole risk and rewards from the leased assets are assigned to the leasee, the lease is recognised in fixed assets present value of minimum lease payments established for the lease s inception. Lease payments are alloced between liability and finance charges so as to achieve a constant re on the finance balance outstanding. Financial cost is recognized directly in the income stement. The property, plant and equipment acquired under leases is deprecied over the shorter of the asset s estimed useful life and the lease term. Lease payments under agreements which do not meet the requirements for finance lease, are recognised in the income stement on a straight-line basis over the period of the lease. The right of perpetual usufruct of land is classified as opering lease and is recognised in non-current accruals. The purchase price paid for this right is deprecied over the lease period according to the way of spreading in time the rewards from this right. 2.10 Inventories Inventories are sted the lower of cost and net realisable value using the first-in, first-out (FIFO) method. Finished goods are measured cost not higher than net realizable value. Work in progress is measured cost of direct raw merials and labour as well as justified portion of reled production overheads, established basing on normal opering capacity. The above cost does not comprise borrowing costs. 2.11 Construction contracts Contract costs are recognised when incurred. When the outcome of a construction contract cannot be estimed reliably, contract revenue is recognised only to the extent of contract costs incurred th are likely to be recoverable. When the outcome of a construction contract can be estimed reliably and it is probable th the contract will be profitable, contract revenue is recognized over the period of the contract. When it is probable th total contract costs will exceed total contract revenue, the expected loss is recognized as an expense immediely. The Group uses the percentage of completion method to determine the amount to be recognized in a given period. The stage of completion is measured by reference to the contract costs incurred up to the balance sheet de as a percentage of total estimed costs for each contract. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 17

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) The Group presents as an asset the amount due from customers for contract work for all contracts in Progress for which costs incurred plus recognised profits (less recognised losses) exceeds progress billings. Progress billings not yet paid by customers and retention are included within trade and other receivables. The Group presents as a liability the amount due to customers for contract work for all contracts in progress for which progress billings exceed costs incurred plus recognised profits (less recognised losses). 2.12 Trade receivables Trade receivables are recognised initially fair value (current realisable value) and then they are measured amortised purchase price (amortised cost) using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence th the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset s carrying amount and the present value of estimed future cash flows, discounted the effective interest re. The amount of the provision is recognized in the income stement. Non-current receivables comprise receivables from guarantee security deposits and receivables from the disposal of property, plant and equipment with deferred murity de. Current value of non-current receivables as balance sheet de is established by revaluion of future cash flows using the effective interest re, based on the interest re WIBOR 1Y. 2.13 Cash and cash equivalents Cash and cash equivalents are shown in the balance sheet their cost. They include cash in hand and bank, deposits in banks, other short-term investments, highly liquid investments with original murities of three months or less since they were deposited, received, acquired or issued. Bank overdrafts are shown within Loans, borrowings and debt securities on the balance sheet. 2.14 Fixed assets held for trading and discontinued operions Fixed assets (or groups of assets) for disposal are classified as assets held for trading and recognised carrying value not greer than their fair value less cost to sell, if the carrying amount is to be recovered mainly as result of the sale transaction and not due to use. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 18

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 2.15 Share and reserve capital Share capital is recognised in the balance sheet the value specified in the Articles and entered in the court register, with considerion to effects of capital restement due to hyperinflion as per provisions of IAS 29. In case of buy back the payment for shares charges the equity and is recognized in the balance sheet item treasury shares. Additional costs directly tributable to the issue of new shares or options are shown in equity as a deduction from proceeds, net of tax. Additional costs directly tributable to the issue of new shares or options with the intent to take over the company are shown cost as part of purchase price. Reserve capital is established as provided by the Articles from retained earnings and by transfer from other reserves. Furthermore, differences between fair value of payment received and nominal value of shares are recognized in the share premium reserve capital, with considerion to the effect of capital restement due to hyperinflion as per provisions of IAS 29. Where any Group company purchases the Company s equity share capital (treasury shares), the considerion paid, including any directly tributable costs (net of income taxes) is deducted from equity tributable to the Company s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any considerion received, net of any directly tributable incremental transaction costs and the reled income tax effects, is included in equity tributable to the Company s equity holders. 2.16 Loans and borrowings Loans and borrowings are recognised initially fair value, net of transaction costs incurred. Ler the borrowings are sted adjusted purchase price (amortised cost) and any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income stement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for least 12 months after the balance sheet de. 2.17 Income taxes Income tax on gain or loss for the financial year comprises current and deferred portion. Income tax is recognized in the income stement, except for amounts reled to items shown directly in the equity, in which case the income tax is recognized in equity. Current portion of the income tax is the expected tax on taxable income for the year established basing on tax res valid the balance sheet de, inclusive of all prior years tax adjustments. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 19

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Provision for deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolided financial stements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than business combinion, th the time of the transaction affects neither accounting nor taxable profit. Deferred income tax is determined using tax res (and laws) th have been enacted or substantially enacted by the balance sheet de and are expected to apply when the reled deferred income tax asset is realized or the deferred income tax liability is settled. In connection with the temporary differences between the value of assets and liabilities shown in the books and their value for tax purposes, tax loss and investment reliefs deductible in the future, deferred income tax assets are established. Deferred income tax assets are recognized to the extent th is probable th future taxable profit will be available against which the temporary differences, tax losses and investment reliefs, deductible in future, can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associes, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable th the temporary difference will not reverse in the foreseeable future. Current deferred income tax assets and liabilities are offset if there are enforceable laws permitting such offset and if the parties intend to settle their account net or the same time realize an asset and settle a liability. Deferred income tax assets and liabilities offset if they rele to settlements in the same country to the extent the actual payments and proceeds from income tax may be settled net and either concern the same company of the Group or different entities which are able and intend to settle their accounts net. 2.18 Employee benefits 1. Pension and retirement obligions The Group operes a pension and retirement benefits scheme. The defined benefit obligion is calculed annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligion is determined by discounting the estimed future cash outflows using interest res of high-quality corpore bonds th are denomined in the currency in which the benefits will be paid, and th have terms to murity approximing to the terms of the reled pension or retirement benefit liability. 2. Share-based plans Share options awarded before 7 November 2002 are not subject to cost. Shares are recognized when the options are exercised and the proceeds gained are credited to share capital and share premium. The Group does not opere share option scheme awarded after 7 November 2002. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 20

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 3. Terminion benefits Terminion benefits are payable when employment is termined before the normal retirement de, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes terminion benefits when it is demonstrably committed to either: termining the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing terminion benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet de are discounted to present value. 4. Bonus plans The Group recognises a liability and an expense for bonuses defined in objective cards which are annexed to employment contracts. Provision for bonuses is established (expense recognized on a time-proportion basis) and recognised in accrued expenses. 2.19 Provisions Provisions for restructuring costs and legal claims are recognised when: The Group has a present legal or constructive obligion as a result of past events; it is more likely than not th an outflow of the Group s resources will be required to settle the obligion, and the amount has been reliably estimed. Where there are a number of similar obligions, the likelihood th an outflow will be required in settlement is determined by considering the class of obligion as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligions may be small. Provisions are measured the present value of best estime, made by the managements of the Group entities according to their best knowledge, of the expenditure required to settle the present obligion the balance sheet de. The discount re used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. 2.20 Trade and other liabilities Trade and other payables other than financial obligions are recognised amounts due and subsequently measured amortised cost. Non-current liabilities are discounted to their present values the effective interest re based on the interest re WIBOR 1Y. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 21

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 2.21 Revenue recognition Sales revenue is recognized fair value of payment received or due from the sale of goods and services, net of value-added tax, rebes and discounts and after elimining intra-group sales. a) Sales of goods are recognised when significant part of risks and rewards from ownership of products and goods have been passed on the customer. b) Revenue from long-term construction contracts are recognised according to the rules presented in item 2.11. c) Sales of services are recognised in the accounting period in which the services are rendered, when: the amount of revenue can be reliably estimed, the entity is likely to gain financial profit from the transaction, stage of completion of the transaction on the balance sheet de can be reliably determined. d) Interest income is recognised on a time-proportion basis using the effective interest method. e) Dividend income is recognized when the right to receive payment is established. 2.22 Method of establishing the financial result Financial result is established using the following methods: Time-proportion (accruals) method, according to which all business operions concerning the reporting period in the books of Companies in the Group and in the consolided financial stements, disregarding the fact whether they were paid as the balance sheet de. Proportion of costs to revenues method, according to which the financial result has been measured basing on total revenues in the reporting period and costs of obtaining revenue for this period, other net gains or losses or net financial costs. Revenues are recognised in the amount for which it is probable th the Company will obtain economic benefits which can be reliably measured. Financial costs include interest on loans and borrowings and the amount of discount to be settled. Any interest is charged in the income stement the moment it is incurred and is recognized in financial costs. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 22

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 2.23 Financial risk management Interest re risk As the business operions of companies in the Group are partly financed by bank loans, the Group is exposed to the risk of interest re fluctuions. The level and fluctuions of interest res and also the fact th the Group does not have long-term loans did not cause the necessity to use any hedging instruments. Foreign exchange risk The Group is exposed to foreign exchange risk arising from purchase and sale transactions realized in different currencies. In the case of exports in EUR realized by the Group, there is a nural security of exchange risk resulting from the fact th most imports are also realized in EUR. Essential items of the Group s operions exposed to foreign exchange risk are: export realized in USD and those contracts executed in Poland which are concluded in EUR but settled in PLN. The Company seeks to minimize adverse effect of currency risk, using Forward contracts as hedges of foreign exchange risk. Credit risk The Group is not exposed to credit risk of financial transactions, as they are entered into with high-creditquality financial institutions. Also, the Group has policies th limit the amount of credit exposure to any financial institution. However, trade and other receivables due to products and services supplied by the Group entities are exposed to increased credit risk. Policy of current monitoring if the customers applied by the Group, which consists in assessing their feasibility to clear their financial obligions, enables to verify such credit risk, both the stage of offer preparion as during contract execution. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adeque amount of committed credit facilities and guarantee lines. 2.24 Segment reporting The Group s business activity is cegorised by industries. A segment is a group of assets and operions engaged in providing products or services th are subject to risks and returns th are different from those of other business segments. Segment costs are identified by costs comprising cost of sales to external customers and cost of transactions with other segments which result from opering activity of the segment and can be directly tributed to the segment. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 23

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) In the consolided financial stements, a geographical segment is the area of the Group s operion which is engaged in providing products or services within a particular economic environment th is subject to risks and returns th are different from those of segments opering in other economic environments (domestic and foreign). 2.25 New accounting standards and interpretions Listed below are newly published standards, amendments and interpretions relevant for accounting periods ending 31 December 2006: IAS 19, Employee benefits (amendment) IAS 39, Financial Instruments: Recognition and Measurement (amendment) IAS 21, Effects of Changes in Foreign Exchange Res (amendment) IFRS 4 (amendment) Insurance Contracts. IFRS 6, Explorion for and Evaluion of Mineral Resources IFRIC 4, Determining whether an Arrangement contains a Lease, IFRIC 5, Rights to Interests arising from Decommissioning, Restorion and Environmental Rehabilition Funds, IFRIC 6, Liabilities arising from Participing in a Specific Market Waste Electrical and Electronic Equipment. Listed below are newly published standards, amendments and interpretions relevant for accounting periods beginning on or after 1 January 2007, which were not applied by the Group earlier: IFRS 7, Financial Instruments: Disclosures and a complementary amendment to IAS 1, Presention of Financial Stements Capital Disclosures, IFRIC 7, Applying the Restement Approach under IAS 29, IFRIC 8, Scope of IFRS 2 IFRIC 9, Reassessment of Embedded Derivives, IFRIC 10, Interim Financial reporting and Impairment. In the opinion of the Group s Management Board, the new IFRS 7 (Financial Instruments: Disclosures and a complementary amendment to IAS 1, Presention of Financial Stements Capital Disclosures) which will be applied to financial stements from 1 January 2007 will improve the presention of da on financial instruments. In the opinion of the Group s Management Board the other newly published standards, amendments and interpretions relevant for accounting periods beginning on or after 1 January 2006 will not affect the financial stements or financial standing of the Group. 3. Operions discontinued in the reporting period or to be discontinued in the next period In the 1st half 2006 ended 30 June no operion was discontinued by the entities of the Group and no such discontinuion is planned for the following period. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 24

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 4. Changes in presention of the consolided financial stements Presented below are the changes in the classificion of da comparing to the H1 2005 report. The above change is the result of changing the form of the stements. It was introduced in order to provide better understanding of the financial stements, and with illustrive financial stements included in IAS 1 in mind. The tables presented below show the type of adjustments made, referring to prior periods, and the amount of adjustment concerning each of the periods presented earlier in every line item of the financial stements. The amount of net profit adjustment does not impact earnings per share. The amount of adjustment of the opening balance of the earliest of presented periods has not been provided, as it does not impact the value of net assets or prior years profit. Adjustment of the consolided balance sheet of the Elektrobudowa SA Group as 30 June 2005. Presention in H1 2005 report Correct presention Difference Explanion of differences Assets Non-current assets 46 139 42 850 (3 289) Property, plant and equipment 30 227 29 734 (493) transfer of the right to perpetual usufruct of land Intangible assets 1 636 1 900 264 carried costs of unfinished development works Available-for-sale financial assets 879 879 0 Trade and other receivables 9 722 9 722 0 Deferred income tax assets 3 675 122 (3 553) correction of deferred tax presention (shown to balance) Non-current prepayments and accrued income 0 493 493 transfer of the right to perpetual usufruct of land Current asssets 122 772 122 508 (264) Inventories 17 486 17 486 0 Trade and other receivables 83 752 83 752 0 Current prepayments 692 428 (264) carried costs of unfinished development works Amounts due from customers for 14 164 14 164 0 contract work Cash and cash equivalents 6 678 6 678 0 Total assets 168 911 165 358 (3 553) EQUITY 63 451 63 451 0 Share capital 24 821 24 821 0 Reserve capital 58 396 58 396 0 Exchange differences from (130) (44) 86 translion of subsidiaries Prior years' profit (loss) (22 352) (22 352) 0 Profit (loss) 1 660 1 574 (86) 10 amortision Konip - reversal of consol. correction 2004 (96) valuion of shares in Kruelta - reversal of consol. correction 2004 Minority interest 1 056 1 056 0 LIABILITIES 105 460 101 907 (3 553) 1. Non-current liabilities 5 995 2 442 (3 553) 3 553 0 (3 553) correction of deferred tax presention (shown to balance) Deferred income tax liabilities Retirement benefit obligions 1 209 1 209 0 Trade and other payables 1 233 1 233 0 2. Current liabilities 99 465 99 465 0 Trade and other liabilities 59 727 59 727 0 Loans and borrowings 30 507 30 507 0 Provisions 613 613 0 Accrued expenses 1 234 1 234 0 Amounts due to customers for contract work 7 384 7 384 0 Total equity and liabilities 168 911 165 358 (3 553) The notes on pages 10 to 85 are an integral part of these consolided financial stements. 25

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Adjustment of the consolided income stement of the Elektrobudowa SA Group as 30 June 2005. Presention in H1 2005 report Correct presention Difference Explanion of differences Revenues 124 324 124 920 596 positive translion differences, realised Cost of goods sold (115 137) (115 751) (614) (616) negive translion differences, realised 2 amortision Konip Gross profit 9 187 9 169 (18) Selling costs (326) (326) 0 Administrive expenses (4 058) (4 058) 0 Other profit (loss), net (1 978) (1 362) 616 513 interest 948 positive translion differences (282) negive translion differences (63) interests on liabilities, calculed and paid (4) interests cancelled (153) cancelled interests on overdue debts 219 reversed write-offs for interest 6 financial income - discount (370) commission for loans and guarantees; revenue duty on bills od exchange 10 amortision of Konip - reversal of consol. correction 2004 (96) valuion of stake in Kruelta - reversal of consol. correction 2004 (3) amortision of Konip 33 other financial income carried (142) other financial costs carried Opering profit (loss) Financial cost, net 2 825 682 3 423 (2) 598 (684) (513) interests (6) financial income - discount (219) reversed write-offs for interest (1.544) positive translion differences Profit before tax 3 507 3 421 (86) Income tax (1 518) (1 518) 0 Net profit for the year 1 989 1 903 (86) 898 negive translion differences 63 interests on liabilities, calculed and paid 153 cancelled interests on overdue debts 4 interests cancelled 370 commission for loans and guarantees; revenue duty on bills od exchange (33) other financial income carried 142 other financial costs carried 1 difference from rounding The notes on pages 10 to 85 are an integral part of these consolided financial stements. 26

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Adjustment of the cash flow stement of the Elektrobudowa SA Group as 30 June 2005. Presention in H1 2005 report Correct presention Difference Explanion of differences A Cash flows from opering (8 208) (7 740) 468 activities I. Net profit 1 660 1 574 (86) explanions the income stement II Adjustments (9 868) (9 314) 554 1. Minority profit (loss) (329) 329 658 adjustment of minority profit presention 2. Amortision 2 608 2 580 (28) (3) amortision of the right of perpetual usufruct of land (25) translion differences from valuion of subsidiaries 3. Profit (loss) from currency (92) 0 92 reversal of translion differences from valuion of subsidiaries exchange differences 4. Interest and share in profits (dividends) 1 021 1 021 0 5. Change in provisions 2 015 0 (2 015) (1.458) provision for deferred income tax 20 change due to long-term provisions for pension benefits and similar (77) change in short-term provisions for pension benefits and similar (500) change in short-term provision for corrective works 6. Profit (loss) from investing activities (288) (288) 0 7. (172) deferred income tax assets 15. Change in settlements of construction contracts 0 (9 049) (9 049) carried settlements of construction contracts 16. Other adjustments (365) (81) 284 (246) carried costs of unfinished development works B Cash flows from investing (2 637) (2 637) 0 activities I. Cash inflows 588 588 0 II. Cash outflows (3 225) (3 225) 0 C Cash flows from financing 7 982 7 982 0 activities I. Cash inflows 9 025 9 025 0 II. Cash outflows (1 043) (1 043) 0 1. Payments due to lease contracts (21) (21) 0 2. Interests and share in profits (dividends) (1 022) (1 022) 0 530 translion differences from valuion of subsidiaries D Net cash flows (2 863) (2 395) 468 E Cash beginning of period 9 541 9 073 (468) adjustment of cash presention in subsidiaries F Change due to deferred income tax 0 1 286 1.458 provision for deferred income tax 8. Change in inventories (5 172) (5 166) 6 correction of presention of inventories of subsidiaries 9. Change in trade and other receivables 14 923 14 215 (708) correction of presention of receivables of subsidiaries 10. Change in liabilities, except loans and borrowings (14 625) (12 671) 1 954 1.525 correction of presention of paid tax (20) change due to long-term provisions for pension benefits and similar 77 change in short-term provisions for pension benefits and similar 500 change in short-term provision for corrective works (128) translion differences from valuion of subsidiaries 11. Income tax paid 0 (1 525) (1 525) correction of presention of paid tax 12. Change in prepayments and accruals and in settlements of construction contracts (9 564) 0 9 564 9.049 carried settlements of construction contracts 251 short term accruals due to write off to company social contr.fund 246 short term accruals due to development cost (26) short-term deferred costs 110 short terms prepayments for supplies 172 change in income tax assets 154 change in accruals due to holiday pay (17) change in accruals due to annual bonuses (417) change in accruals due to services 42 change in accruals due to auditing of financial stements 13. Change in current accruals 0 32 32 (251) short-term accruals due to write off to company social contrib.fund 26 short-term deferred costs (110) short-term prepayments for supplies (154) change in accruals due to holiday pay 17 change in accruals due to annual bonuses 417 change in accruals due to services (42) change in accruals due to auditing of financial stements 129 translion differences from valuion of subsidiaries 14. Change in non-current accruals 0 3 3 amortision of the right of perpetual usufruct of land Cash and overdrafts end of period 1 286 6 678 6 678 0 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 27

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 5. Segment informion Primary reporting form business segments As 30 June 2006, the Group has been organised into four business segments, which are subject to different kinds of risks and gains. - The segment: Power Generion Division provides services for power and he genering stions, heavy industry, particularly metallurgy and mining together with processing facilities. The services include electrical installion works, commissioning and start up of electrical plant and equipment, and also manufacture and installion of high-current busducts. - The segment: Industry Division renders services for broadly understood public sector, trade (hypermarkets) and industry, particularly petrochemical, paper & pulp, road building. The services include electrical installion, commissioning and start-up and general contracting for investments. - The segment: Power Distribution Division provides overall services for the power distribution sector and supplies of products manufactured by the Division. The core business of the segment is the production and sale of low and medium voltage equipment, particularly low and medium voltage switchgears and mobile substions, manufacture and sale of steel cable trays and supports, manufacture and sale of control and signalling equipment, the supply of complete distribution substions and general contracting for power transmission and distribution projects. - The segment: Automion Division supplies control, supervision and automion systems for electrical substions and switchgears. Services rendered by the division include also monitoring, control and overall automion systems for manufacturing and processing industries. Also the electrical, instrumention and control services are provided for wer trement and environmental protection facilities. Automion solutions are also provided for construction industry, power sector and hegenering industry. - Other items include other merial and not merial services provided for external customers. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 28

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Business segments results for H1 2006 Power Generion Division Industry Division Power Distribution Division Automion Division Other items Group total Gross segment sales 60 496 61 432 56 155 550 3 314 181 947 Inter-segment sales* 223 900 19 770 547 1 883 23 323 Net sales 60 273 60 532 36 385 3 1 431 158 624 Opering profit 1 422 (766) 5 908 (785) 375 6 154 Financial activities result (42) Taxable profit 6 112 Income tax (1 622) Net profit 4 490 Minority profit - net 547 Net profit of Elektrobudowa's shareholders 3 943 Other business segment items included in the income stement for H1 2006 Power Generion Division Industry Division Power Distribution Division Automion Division Other items Group total depreciion 325 226 582 43 677 1 853 amortision 47 31 281 2 37 398 * inter-segment sales are realised market prices Business segment results for 2005 Power Generion Division Industry Division Power Distribution Automion Division Other items Group total Division Gross segment sales 108 831 124 158 165 538 0 7 536 406 063 Inter-segment sales* 1 629 914 53 948 0 4 654 61 145 Net sales 107 202 123 244 111 590 0 2 882 344 918 Opering profit 1 395 3 766 7 885 0 (88) 12 958 Financial activities result (177) Taxable profit 12 781 Income tax (2 686) Net profit 10 095 Minority profit - net 815 Net profit of Elektrobudowa's shareholders 9 280 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 29

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Other business segment items included in the income stement for 2005 Power Generion Division Industry Division Power Distribution Automion Division Other items Group total Division depreciion 673 383 1 210 0 1 793 4 059 amortision 144 98 634 0 123 999 * inter-segment sales are realised market prices Business segment results for H1 2005 Power Generion Division Industry Division Power Distribution Division Automion Division Other items Group total Gross segment sales 38 273 50 065 53 665 0 3 625 145 628 Inter-segment sales* 624 792 17 414 0 1 878 20 708 Net sales 37 649 49 273 36 251 0 1 747 124 920 Opering profit (959) 907 3 688 0 (213) 3 423 Financial activities result (2) Taxable profit 3 421 Income tax (1 518) Net profit 1 903 Minority profit - net 329 Net profit of Elektrobudowa's shareholders 1 574 Other business segment items included in the income stement for H1 2005 Power Generion Division Industry Division Power Distribution Division Automion Division Other items Group total depreciion 355 189 590 0 916 2 050 amortision 86 59 330 0 77 552 * inter-segment sales are realised market prices The notes on pages 10 to 85 are an integral part of these consolided financial stements. 30

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Segment assets and liabilities 30 June 2006 Power Generion Division Industry Division Power Distribution Division Automion Division Other Group Total items Assets 57 044 58 352 36 617 626 * 35 276 187 915 Liabilities 31 870 41 398 34 504 1 163 * 8 708 117 643 Capital expenditure 682 536 1 098 161 1 126 3 603 * The items include mutual assets and liabilities of the segments. Segment assets and liabilities 31 December 2005 Power Generion Division Industry Division Power Distribution Division Automion Division Other Group Total items Assets 44 593 56 028 39 770 0 * 35 017 175 408 Liabilities 17 550 46 487 32 194 0 * 7 584 103 815 Capital expenditure 1 101 791 2 082 0 1 849 5 823 * The items include mutual assets and liabilities of the segments. Segment assets and liabilities 30 June 2005 Power Generion Division Industry Division Power Distribution Division Automion Division Other Group Total items Assets 37 090 44 870 53 593 0 * 29 805 165 358 Liabilities 19 286 37 051 42 219 0 * 3 351 101 907 Capital expenditure 212 340 1 027 0 864 2 443 * The items include mutual assets and liabilities of the segments. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 31

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Provisions for impairment of receivables of business segments Power Generion Division Industry Division Power Distribution Division Automion Division Other Group Total items 30 June 2006 9 643 2 770 3 290 0 4 465 20 168 31 December 2005 9 541 2 892 3 475 0 4 583 20 491 30 June 2005 11 796 5 695 3 823 0 5 027 26 341 Value of provisions for impairment of receivables of business segments Power Generion Division Industry Division Power Distribution Division Automion Division Other Group Total items in 1st half 2006 1 907 5 453 0 19 2 384 in 2005 3 093 503 266 0 215 4 077 in 1st half 2005 1 165 98 291 0 385 1 939 Reversal of provisions for impairment of receivables of business segments Power Generion Division Industry Division Power Distribution Division Automion Division Other Group Total items in 1st half 2006 1 805 127 638 0 137 2 707 in 2005 4 492 3 247 773 0 285 8 797 in 1st half 2005 309 39 450 0 11 809 Secondary reporting form geographical segments The Group s activities are conducted in the Company s home country Poland and also in foreign markets. for six months ended 30 June 2006 30 June 2005 Sales revenues domestic 138 020 112 683 export 1 386 2 507 sales by the sibsidiary in the Russian Federion 19 218 9 730 158 624 124 920 Export sales are done by the power distribution and power generion segments. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 32

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 6. Property, plant and equipment 30 June 2006 31 Dec 2005 30 June 2005 Property, plant and equipment, of which: 30 354 29 716 29 599 - buildings, facilities, civil engineering structures 20 864 20 483 20 945 - plant and machinery 5 320 5 793 6 312 - vehicles 3 235 2 524 1 880 - other assets 935 916 462 Property, plant and equipment under construction 850 426 135 31 204 30 142 29 734 As 30 June 2006 property, plant and equipment were mortgaged to secure bank loans and guarantees in favour of: a) ING Bank Śląski headquartered in Kowice: up to PLN 2,000,000.00. up to PLN 1,000,000.00. up to PLN 1,660,000.00. b) PKO BP headquartered in Warsaw, up to PLN 6,741,000.00. c) BPH SA headquartered in Krakow, up to PLN 8,516,615.00. d) Bank Handlowy headquartered in Warsaw, up to PLN 2,100,000.00. To ensure the repayment of loans and guarantees, as 30 June 2006 a pledge by registrion was established in favour of: a) ING Bank Śląski headquartered in Kowice up to PLN 2,440,600.00. b) BPH SA headquartered in Krakow, up to PLN 1,680,495.59. As 30 June 2005 property, plant and equipment are mortgaged to secure bank loans and guarantees in favour of: a) ING Bank Śląski headquartered in Kowice: up to PLN 3,000,000.00. up to PLN 1,660,000.00. b) PKO BP headquartered in Warsaw, up to PLN 6,300,000.00. c) BPH SA headquartered in Krakow, up to PLN 8,516,615.00. To ensure the repayment of loans and guarantees as 30 June 2005 a pledge by registrion was established in favour of: a) ING Bank Śląski headquartered in Kowice up to PLN 4,800,000.00. b) BPH SA headquartered in Krakow, up to PLN 1,680,495.59. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 33

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) - buildings, facilities, civil engineering structures - plant and machinery - vehicles - other fixed tangible assets - assets under construction Property, plant and equipment Gross value of fixed tangible assets 1 January 2006 22 638 26 201 8 042 5 617 426 62 924 Additions (of which): 869 463 1 123 140 424 3 019 - purchase 0 454 1 123 140 1 302 3 019 - take over from investment 869 9 0 0 (878) 0 Reductions (of which): (10) (1 686) (219) (105) 0 (2 020) - selling 0 (1 459) (219) (5) 0 (1 683) - liquidion (10) (227) 0 (100) 0 (337) Gross value of fixed tangible assets 30 June 2006 23 497 24 978 8 946 5 652 850 63 923 Accumuled depreciion 1 January 2006 (2 155) (20 408) (5 518) (4 701) 0 (32 782) Current depreciion for the period (488) (832) (412) (121) 0 (1 853) Reductions due to selling, liquidion of fixed tangible assets 10 1 582 219 105 0 1 916 Accumuled depreciion 30 June 2006 (2 633) (19 658) (5 711) (4 717) 0 (32 719) Net fixed tangible assets 30 June 2006 20 864 5 320 3 235 935 850 31 204 Property, plant and equipment is recognised purchase price (manufacture cost). Land and buildings were measured fair value the de of transition to IFRS. Fair value of land and buildings 1 January 2004 was measured using the investment method and simple capitalision technique in the middle of 2004 by external independent valuers and was lower than their carrying values by 475 thousand zlotys. The valuion covered buildings, premises and civil engineering facilities shown in the Group's assets 1 January 2004. The estimion surveys from the valuions are kept by the Parent company. Net carrying value of fixed tangible assets, without considerion to fair value, is 31,294 thousand zloty 30 June 2006, 30,606 thousand zloty 31 December 2005 and 30,449 thousand zloty 30 June 2005. The Group does not have any property plant and equipment with restricted right of use. The Group does not have any substantial property, plant and equipment used against a lease contract. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 34

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) - buildings, facilities, civil engineering structures - plant and machinery - vehicles - other fixed tangible assets - assets under construction Property, plant and equipment Gross value of fixed tangible assets 1 January 2005 21 842 24 635 6 707 5 088 1 463 59 735 Additions (of which): 985 2 594 1 532 637 (1 037) 4 711 - purchase 0 913 1 532 637 1 629 4 711 - take over from investment 985 1 681 0 0 (2 666) 0 Reductions (of which): (189) (1 028) (197) (108) 0 (1 522) - selling (185) (815) (197) (11) 0 (1 208) - liquidion (4) (213) 0 (97) 0 (314) Gross value of fixed tangible assets 31 December 2005 22 638 26 201 8 042 5 617 426 62 924 Accumuled depreciion 1 January 2005 (1 178) (19 124) (5 023) (4 575) 0 (29 900) Current depreciion for the period (997) (2 149) (680) (233) 0 (4 059) Reductions due to selling, liquidion of fixed tangible assets 20 865 185 107 0 1 177 Accumuled depreciion 31 December 2005 (2 155) (20 408) (5 518) (4 701) 0 (32 782) Net fixed tangible assets 31 December 2005 20 483 5 793 2 524 916 426 30 142 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 35

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) - buildings, facilities, civil engineering structures - plant and machinery - vehicles - other fixed tangible assets - assets under construction Property, plant and equipment Gross value of fixed tangible assets 1 January 2005 21 842 24 635 6 707 5 088 1 463 59 735 Additions (of which): 796 2 014 546 57 (1 328) 2 085 - purchase 0 333 546 57 1 149 2 085 - take over from investment 796 1 681 0 0 (2 477) 0 Reductions (of which): (4) (746) (54) (80) 0 (884) - selling 0 (615) (54) 0 0 (669) - liquidion (4) (131) 0 (80) 0 (215) Wartość brutto środków trwałych na 30 czerwca 2005 r. 22 634 25 903 7 199 5 065 135 60 936 Accumuled depreciion 1 January 2005 (1 178) (19 124) (5 023) (4 575) 0 (29 900) Current depreciion for the period (511) (1 092) (339) (108) 0 (2 050) Reductions due to selling, liquidion of fixed tangible assets 0 625 43 80 0 748 Accumuled depreciion 30 June 2005 (1 689) (19 591) (5 319) (4 603) 0 (31 202) Net fixed tangible assets 30 June 2006 20 945 6 312 1 880 462 135 29 734 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 36

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Depreciion of property, plant and equipment is charged to the income stement: cost of products, goods and merial sold 1 757 3 624 1 829 administrive expenses 96 435 221 other opering expenses 1 853 4 059 2 050 30 June 2006 31 Dec 2005 30 June 2005 Property, plant and equipment by ownership owned 30 273 29 616 29 483 leased 81 100 116 30 354 29 716 29 599 30 June 2006 31 Dec 2005 30 June 2005 Off-balance sheet property, plant and equipment perpetual use of land received free of charge 737 710 742 Off-balance sheet assets comprise the value of land in perpetual use, measured on the basis of annual fees paid by the Group. Percentage re of the annual fee of most lands is 3%; the fee is calculed by multiplying the re by the value of land. Total fees are included in invoices issued by relevant governmental bodies which administer the lands owned by the Ste Treasury, or by executive bodies of a commune, a county or voivodship in case of land owned by them. Average usage period of the above land is 83 years. Expected payments for the use of land will amount to PLN 22 thousand this year, PLN 88 thousand in the period over 1 year to 5 years and PLN 1716 thousand in the period over 5 years. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 37

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 7. Intangible assets 30 June 2006 31 Dec 2005 30 June 2005 Cost of finished development works Acquired concessions, pents, licences and similar Cost of unfinished development works 566 765 835 629 684 801 1 198 758 264 2 393 2 207 1 900 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 38

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) cost of finished development works concessions, pents, licenses and software other intangible assets cost of unfinished development works Intangible assets, total Gross value of intangible assets 1 January 2006 4 465 4 292 1 734 758 11 249 Additions, of which: 15 129 0 440 584 - purchase 0 137 0 0 137 - internally genered 0 0 0 447 447 - finished development works charged into costs 15 (8) 0 (7) 0 Gross value of intangible assets 30 June 2006 4 480 4 421 1 734 1 198 11 833 Accumuled amortision 1 January 2006 (3 700) (3 608) (1 734) 0 (9 042) Current amortision (214) (184) 0 0 (398) Accumuled amortision 30 June 2006 (3 914) (3 792) (1 734) 0 (9 440) Net intangible assets 30 June 2006 566 629 0 1 198 2 393 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 39

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) cost of finished development works concessions, pents, licenses and software other intangible assets cost of unfinished development works Intangible assets, total Gross value of intangible assets 1 January 2005 4 300 4 084 1 734 19 10 137 Additions, of which: 165 208 0 739 1 112 - purchase 0 208 0 0 208 - internally genered 0 0 0 904 904 - finished development works charged into costs 165 0 0 (165) 0 Gross value of intangible assets 31 December 2005 4 465 4 292 1 734 758 11 249 Accumuled amortision 1 December 2005 (3 254) (3 055) (1 734) 0 (8 043) Current amortision (446) (553) 0 0 (999) Accumuled amortision 31 December 2005 (3 700) (3 608) (1 734) 0 (9 042) Net intangible assets 31 December 2005 765 684 0 758 2 207 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 40

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) cost of finished development works concessions, pents, licenses and software other intangible assets cost of unfinished development works Intangible assets, total Gross value of intangible assets 1 January 2005 4 300 4 084 1 734 19 10 137 Additions, of which: 13 100 0 245 358 - purchase 0 100 0 0 100 - internally genered 0 0 0 258 258 - finished development works charged into costs 13 0 0 (13) 0 Wartość brutto wartości niemerialnych na 30 czerwca 2005 r. 4 313 4 184 1 734 264 10 495 Accumuled amortision 1 January 2005 (3 254) (3 055) (1 734) 0 (8 043) Current amortision (224) (328) 0 0 (552) Accumuled amortision 30 June 2005 (3 478) (3 383) (1 734) 0 (8 595) Net intangible assets 30 June 2005 835 801 0 264 1 900 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 41

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Amortision of intangible assets has been recognised in the income stement in items: cost of goods sold 362 877 475 administrive expenses 36 122 77 398 999 552 No borrowings or other liabilities of the Group are secured on intangible assets. No property is secured on intangible assets. The Group does not have any intangible assets with unlimited time to use. 8. Joint ventures In the 1st half of 2005 the Elektrobudowa SA Group did not enter in any joint ventures. 9. Available-for-sale financial assets 30 June 2006 31 Dec 2005 30 June 2005 Shares 879 879 879 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 42

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Available-for-sale financial assets by negotiability: With unrestricted negotiability, not listed in reguled market (carrying amount) 879 879 879 Shares (carrying amount): 879 879 879 - impairment (1 221) (1 221) (1 221) - value according to acquisition price 2 100 2 100 2 100 Carrying amount, total 879 879 879 Shares have been valued purchase price with considerion to impairment, as it was impossible to reliably establish their fair value. Available-for-sale financial assets include shares in BIPROHUT (not reled party). The notes on pages 10 to 85 are an integral part of these consolided financial stements. 43

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Details of BIPROHUT 30 June 2006 Name and legal form registered office business activity carrying amount of shares total assets the company's equity, of which: - share capital profit liabilities and reserves for liabilities % interest in share capital % of votes in the general meeting BIPROHUT Sp.z o.o. Gliwice design engineering 879 7 708 6 074 3 301 1 060 1 634 22,73 21,57 In March 2006 Biprohut bought back and cancelled further 912 of its shares. In result of redemption the percentage of votes of Elektrobudowa SA in the AG M of Biprohut rose from 20.93% to 21.57%, which in the opinion of the Management Board did not have any impact on Elektrobudowa s possibility to influence the opering and financial policy of Biprohut. Elektrobudowa SA has only one representive out of five in the Supervisory Board of Biprohut, so it cannot significantly influence the company s opering and financial policy. Basing on the above and on provisions of IAS 28 the Management Board of Elektrobudowa SA does not classify the entity as associe to be consolided by the equity method. The Management Board intend to sell the Company s interest in Biprohut in the shortest possible time. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 44

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Details of BIPROHUT 31 December 2005 Name and legal form registered office business activity carrying amount of shares the company's equity, of total assets which: profit - share capital liabilities and reserves for liabilities % interest in share capital % of votes in the general meeting BIPROHUT Sp.z o.o. Gliwice design engineering 879 10 249 5 150 3 301 1 492 5 099 22,54 20,93 Details of BIPROHUT 30 June 2005 Name and legal form registered office business activity carrying amount of shares total assets the company's equity, of which: - share capital profit liabilities and reserves for liabilities % interest in share capital % of votes in the general meeting BIPROHUT Sp.z o.o. Gliwice design engineering 879 5 874 4 470 3 301 560 1 404 22,18 19,85 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 45

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 10. Deriviive financial instruments 30 June 2006 31 Dec 2005 30 June 2005 Derivive financial instruments Forward contracts - transactions which are not suitable as hedges 381 181 0 Derivive financial instruments are recognised fair value and the remaining gains or losses from valuion are released to the income stement. 11. Trade and other receivables 30 June 2006 31 Dec 2005 30 June 2005 Gross trade and other receivables recognised in non-current assets 10 013 11 111 11 432 Gross trade and other receivables recognised in current assets 101 728 114 637 110 093 Total receivables 111 741 125 748 121 525 of which: - receivables vindiced in court 1 570 488 430 - trade overdue debtors 6 533 17 337 30 656 Receivables vindiced in court include: - trade accounts receivable 1 570 488 430 Impairment of receivables vindiced in court amounts to: 1 084 488 430 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 46

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 11.1 Trade and other receivables recognised in non-current assets 30 June 2006 31 Dec 2005 30 June 2005 Non-current trade and other receivables of which due from: - disposal of property, plant and equipment 2 324 2 423 2 509 - bank and guarantee security deposits 6 351 7 284 7 213 Non-current trade and other receivables - net 8 675 9 707 9 722 Discount of receivables 1 338 1 404 1 710 Non-current trade and other receivables - gross 10 013 11 111 11 432 Recognised bank and guarantee security deposits secure contracts executed by the Company. Present value of non-current receivables the de they are origined is measured through revaluion of future cash flows using the effective interest re based on WIBOR - 1 Y (Warsaw Interbank Offered Re), average value of which was 4.44% in H1 2006 and 5.08% in H1 2005. Non-current receivables balance sheet de are measured by revaluion of discount amount due to lapse of time. 30 June 2006 31 Dec 2005 30 June 2005 Movements in trade and other receivables - by titles Beginning of period 9 707 10 311 10 311 Additions (of which): 2 712 8 066 2 477 - bank and guarantee security deposits 2 646 6 746 2 477 - discount revaluion 66 1 300 0 - reversal of balance sheet valuion of bank security deposits 0 20 0 Reductions (of which): -3 744-8 670-3 066 - reclassificion of receivables -749-4 181-1 886 - payment of receivables 0 0-160 - bank and guarantee security deposits -2 995-4 489 0 - balance sheet valuion of bank security deposits 0 0-25 - discount revaluion 0 0-995 End of period 8 675 9 707 9 722 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 47

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Trade and other receivables - by currency in Polish currency 7 994 9 584 9 035 in foreign currencies (by currencies and transled to PLN) 681 123 687 in thousands / EUR 168 32 169 as transled into thousands of PLN 681 123 687 8 675 9 707 9 722 The fair value of trade and other receivables approximes their carrying amounts. Trade and other receivables recognised in non-current assets are paid within 6 years average. 11.2 Trade and other receivables recognised in current asssets 30 June 2006 31 Dec 2005 30 June 2005 Current trade and other receivables of which: - trade receivables 77 011 90 656 80 795 - other 4 549 3 490 2 957 Total trade and other receivables, net 81 560 94 146 83 752 Impairment of receivables 20 168 20 491 26 341 Total trade and other receivables, gross 101 728 114 637 110 093 30 June 2006 31 Dec 2005 30 June 2005 Trade and other receivables by currency in Polish currency 95 331 107 908 106 037 in foreign currencies (by currencies and transled to PLN) 6 397 6 729 4 056 in thousands of EUR 956 695 67 as transled into thousands of PLN 3 842 2 683 282 in thousands of USD 6 5 41 as transled into thousands of PLN 18 15 152 in thousands of RUB 21 487 35 516 31 038 as transled into thousands of PLN 2 537 4 031 3 622 101 728 114 637 110 093 The fair value of trade and other receivables approximes their carrying amounts. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 48

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Impairment of receivables has been recognized both in the Parent, Elektrobudowa SA and in the Subsidiary, Kruelta. In Kruelta the impairment amounting to PLN 486 thousand concerns the receivables from Jukos Service and has been creed due to prolonging procedure of collecting debt. Provisions for impairment of receivables as 30 June 2006 amount to PLN 20,168 thousand and concern the following receivables: - under arrangement with debtors 2 758 thousand, of which interest: 310 thousand PLN - in bankruptcy proceedings 9 956 thousand, of which interest: 1 030 thousand PLN - vindiced in court 1 084 thousand, of which interest: 35 thousand PLN - from other overdue debtors 6 370 thousand, of which interest: 1 745 thousand PLN of which provisions for impairment of receivables and interest, creed in the 1st half of 2006 amount to PLN 2,384 thousand - for claim under arrangement with debtors 0 thousand PLN - for claim in bankruptcy proceedings 0 thousand PLN - for claim vindiced in court 529 thousand PLN - for bad debts 1 855 thousand PLN Provisions for impairment of receivables as 31 December 2005 amount to PLN 20 491 thousand and concern the following receivables: - under arrangement with debtors 2 869 thousand, of which interest: 310 thousand PLN - in bankruptcy proceedings 10 608 thousand, of which interest: 1 034 thousand PLN - vindiced in court 488 thousand, of which interest: 44 thousand PLN - from other overdue debtors 6 526 thousand, of which interest: 1 533 thousand PLN of which provisions for impairment of receivables and interest, creed in 2005, amount to PLN 4,077 thousand. - for claim under arrangement with debtors 354 thousand PLN - for claim in bankruptcy proceedings 19 thousand PLN - for claim vindiced in court 66 thousand PLN - for bad debts 3 638 thousand PLN The notes on pages 10 to 85 are an integral part of these consolided financial stements. 49

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Provisions for impairment of receivables as 30 June 2005 amount to PLN 26 341 thousand and concern the following receivables: - under arrangement with debtors 15 343 thousand, of which interest: 1 246 thousand PLN - in bankruptcy proceedings 3 379 thousand, of which interest: 314 thousand PLN - vindiced in court 430 thousand, of which interest: 44 thousand PLN - from other overdue debtors 7 189 thousand, of which interest: 2 182 thousand PLN of which provisions for impairment of receivables and interest, creed in the 1st half of 2005 amount to PLN 1,939 thousand - for claim under arrangement with debtors 303 thousand PLN - for claim in bankruptcy proceedings 0 thousand PLN - for claim vindiced in court 0 thousand PLN - for bad debts 1 636 thousand PLN 30 June 2006 31 Dec 2005 30 June 2005 Provisions for impairment of trade and other receivables Provisions for impairment the beginning of period 20 491 25 211 25 211 Creing the provision 2 384 4 077 1 939 Utilision (2 707) (8 797) (809) of which: - paid (563) (694) (306) - amortision of receivables (598) (5 639) (284) - interest paid or amortised (1 546) (2 464) (219) Provisions for impairment the end of period 20 168 20 491 26 341 11.3 Non-current prepayments 30 June 2006 31 Dec 2005 30 June 2005 purchase of the right to perpetual usufruct of land, recognised as opering leasing 489 492 493 Non-current prepayments are recognised only in the parent company, Elektrobudowa S.A.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 50

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 12. Inventories 30 June 2006 31 Dec 2005 30 June 2005 merials 16 104 3 604 10 278 semi-finished products and work in progress 5 879 939 6 371 finished products 333 1 654 837 22 316 6 197 17 486 30 June 2006 31 Dec 2005 30 June 2005 Provision for impairment of inventories and merials Impairment beginning of period Utilision Provision for impairment of inventories and merials end of period 173 176 176-10 -3 0 163 173 176 13. Cash and cash equivalents 30 June 2006 31 Dec 2005 30 June 2005 cash in hand and in banks 17 249 10 104 6 678 30 June 2006 31 Dec 2005 30 June 2005 Cash in banks current accounts 14 000 9 586 6 299 bank deposits 3 246 513 372 17 246 10 099 6 671 Average effective interest re for bank deposits in H1 2006 was 2.7% (whereas 2.78% in the year 2005). Average due time: 1-10 days. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 51

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Cash and cash equivalents - by currency in Polish currency 5 921 3 624 1 698 in foreign currencies (by currencies and transled to PLN) 11 328 6 480 4 980 in thousands of USD 879 915 193 as transled into thousands of PLN 2 798 2 985 645 in thousands of EUR 407 181 4 as transled into thousands of PLN 1 645 700 16 in thousands of RUB 58 298 24 627 37 009 as transled into thousands of PLN 6 885 2 795 4 319 17 249 10 104 6 678 14. Short-term prepayments 30 June 2006 31 Dec 2005 30 June 2005 Short-term prepayments - expenses concerning future periods (subscriptions, 183 262 67 fees concerning next financial year) - settlement of transfer to company's social benefit fund (ZFŚS) 575 0 251 - prepayments for supplies 26 0 110 784 262 428 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 52

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 15. Share capital Share capital (structure) Series / issue Type of shares Type of shares preference Type of shares restrictions Number of shares Value of series / issue par on shares Terms of acquisition De of registrion Dividend rights (since) A ordinary bearer shares unpreferred none 3 248 750 6 497 cash 1995-06-07 1995-01-01 B ordinary bearer shares unpreferred none 722 250 1 953 cash 1995-12-11 1995-01-01 Total number of shares 3 971 000 Par value (PLN) 2,00 Registered share capital 8 450 Revaluion due to hyperinflion 16 371 24 821 In 2000 the Parent bought back and cancelled 254 037 treasury shares (own shares). Following the regulions in force, no changes to the court register were entered. Compared to 31 December 2005 number of shares of the Parent did not change. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 53

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) As required by IAS 29, Elektrobudowa SA rested share premium of its share capital and reserve capital, as this portion of capital was gained in the conditions of hyperinflion. The subsidiaries did not carry out business operions in an hyperinflory economy. Capital was rested as follows: Applied rios: Period Rio Feb -Dec 1992 34,30% 1993 37,60% 1994 29,50% 1995 21,60% 1996 18,50% Effect of restement: Share capital Reserve capital from series B share premium Before reststement After restement 8 450 24 821 8 750 10 369 16. Reserve capital 30 June 2006 31 Dec 2005 30 June 2005 Share premium Creed as required by law Creed acc. to the Articles, over (minimum) value required by law 8 234 8 234 8 234 2 999 2 999 2 999 38 081 39 772 39 772 7 347 7 277 7 391 Other (by type) - transferred from reserve capital 5 562 5 562 5 562 - from distribution of profit of KONIP 166 96 210 - restement due to hyperinflion 1 619 1 619 1 619 56 661 58 282 58 396 The notes on pages 10 to 85 are an integral part of these consolided financial stements. 54

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 17. Net profit tributable to Elektrobudowa SA equity holders for six months ended 30 June 2006 30 June 2005 Net profit Net profit of the parent 4 037 1 287 Net profit of subsidiaries 587 380 Consolidion adjustments -681-93 3 943 1 574 18. Trade and other payables 18.1 Non-current payables 30 June 2006 31 Dec 2005 30 June 2005 Deferred income tax payables 639 0 0 Pension benefits 1 767 2 040 1 209 Trade and other payables 2 526 1 889 1 233 4 932 3 929 2 442 30 June 2006 31 Dec 2005 30 June 2005 Non-current trade payables - by titles retentions from subcontractors 2 526 1 889 1 233 as Present value of non-current payables as balance sheet de is measured through amortised, cost using the effective interest re based on WIBOR - 1 Y (Warsaw Interbank Offered Re). Fair value of those payables approxime their carrying amounts. Non-current trade payables are recognized only by the parent, Elektrobudowa SA. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 55

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Non-current trade payables - by currency in Polish currency 2 426 1 794 1 176 in foreign currencies (by currencies and transled to PLN) 100 95 57 in thousands of EUR 25 25 14 as transled to PLN 100 95 57 2 526 1 889 1 233 as The carrying amount of non-current payables approxime their fair values. Trade and other payables are paid usually within 5 years. 18.2 Trade and other payables 30 June 2006 31 Dec 2005 30 June 2005 Trade payables 52 332 44 482 41 170 Prepayments from customers 9 485 5 389 1 668 Tax, duties, insurance and other benefits 7 398 12 378 9 160 Remunerions 2 563 2 137 2 268 Other (by titles) 6 704 1 191 5 461 - acquisition of fixed assets 152 865 340 - payables to employees 10 38 8 - dividend commitments 5 957 0 4 000 - leasing commitments 26 51 75 - deductions from payroll 222 214 210 - other 337 23 828 78 482 65 577 59 727 as Trade and other payables are paid usually within 60 days. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 56

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Payables due to tax, duty, social security and other benefits as 30 June 2006 31 Dec 2005 30 June 2005 personal income tax 849 588 619 Value Added Tax 3 128 8 740 5 346 social security 3 421 2 988 3 195 PFRON /Ste Fund for the Disabled Rehabilition/ 0 62 0 7 398 12 378 9 160 Fair values of current trade and other payables approxime their carrying amounts. 30 June 2006 31 Dec 2005 30 June 2005 Income tax liabilities 338 1 359 0 as 30 June 2006 31 Dec 2005 30 June 2005 Current trade payables - by currency in Polish currency 51 027 38 312 35 615 in foreign currencies (by currencies and transled to PLN) 1 305 6 170 5 555 in thousands of EUR 245 338 435 as transled into thousands of PLN 991 1 305 1 797 in thousands of USD (8) 3 0 as transled into thousands of PLN (26) 10 0 in thousands of RUB 2 219 42 775 31 544 as transled into thousands of PLN 262 4 855 3 681 in thousands of DKK 143 0 140 as transled into thousands of PLN 78 0 77 52 332 44 482 41 170 as The notes on pages 10 to 85 are an integral part of these consolided financial stements. 57

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 19. Loans and borrowings Current loans and borrowings as 30 June 2006 Lender Registered office in PLN'000 Amount of loan as per contract Amount to be repaid in foreign currency unit currency in PLN'000 in foreign currency unit currency Effective interest re Murity BRE BANK S.A. overdraft facility BANK HANDLOWY overdraft facility ING BANK ŚLĄSKI overdraft facility Warszawa 3 000 0 thousands PLN 0 0 thousands PLN WIBOR 1M + 1.50% within 29.09.2006 Warszawa 6 130 0 thousands PLN 4 145 0 thousands PLN WIBOR T/N + 0.60% renewable every 7 days within 21.01.2007 Kowice 8 000 0 thousands PLN 188 0 thousands PLN WIBOR 1M + 0.70% within 30.05.2007 ING BANK ŚLĄSK foreign currency loan BANK BPH S.A. overdraft facility Kowice 0 137 thousands EUR 0 0 thousands EUR WIBOR 1M + 1.50% within 10.07.2006 Kraków 10 000 0 thousands PLN 5 642 0 thousands PLN WIBOR 1M + 0.75% within 30.04.2008** BANK BPH S.A.* issue of debt securities Kraków 30 000 0 thousands PLN 5 978 0 thousands PLN WIBOR 1M + 0.65% 22.07.2008 PKO BP working capital facility Warszawa 5 000 0 thousands PLN 4 660 0 thousands PLN WIBOR 1M + 0.80% within 23.02.2009** PKO BP kredyt w rachunku Warszawa 5 000 0 thousands PLN 764 0 thousands PLN WIBOR 1M + 0.80% within 23.02.2009** 21 377 * Debt securities have been issued in order to diversify sources of financing of Elektrobudowa SA. Each issue is secured by the Company s receivables. As 30 June 2006 the receivables subject to assignments amount to PLN 82,196 thousand. ** These borrowings are short-term credits with no specified repayment de; the above des are contract validity des. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 58

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Current loans and borrowings as 31 December 2005 Lender Registered office in PLN'000 Amount of loan as per contract Amount to be repaid in foreign currency unit currency in PLN'000 in foreign currency unit currency Effective interest re Murity Security BRE BANK S.A. overdraft facility Warszawa 3 000 thousands PLN thousands PLN WIBOR 1M + 1,50% within 29.09.2006 1 blank bill - debt assignment executory title up to 3,600,000 PLN BANK HANDLOWY overdraft facility ING BANK ŚLĄSKI overdraft facility ING BANK ŚLĄSK foreign currency loan Warszawa 6 130 thousands PLN 3 575 thousands PLN WIBOR T/N + 0,60% renewable every 7 days debt assignment executory title up to PLN 7,356,000.00, mortgage-secured incl. policy assignment up to PLN 2,100,000.00. Kowice 8 000 thousands PLN 4 876 thousands PLN WIBOR 1M + 0,70% within 30.05.2007 mortgage security incl. policy assignment up to PLN 2,000,000.00; executory title up to PLN 12,000,000.00, debt assignment Kowice 410 thousands EUR thousands EUR WIBOR 1M + 1,50% within 10.07.2006 executory title up to EUR 876,000.00, cash security up to EUR 136,750.00, debt assignment BANK BPH S.A. overdraft facility BANK BPH S.A. * issue of debt securities Kraków 8 000 thousands PLN thousands PLN WIBOR 1M + 0,80% within 19.04.2006. executory tittle up to PLN 35,880,320.00, debt assignment, 6 blank bills, mortgage security incl. policy assignment up to PLN 8,516,615.00 Kraków 30 000 thousands PLN 7 964 thousands PLN WIBOR 1M + 0,65% within 05.01.2006 PKO BP working capital facility Warszawa 5 000 thousands PLN thousands PLN WIBOR 1M + 1,00% within 19.05.2006 mortgage security inc. policy assignment up to PLN 6,300,000.00, executory title up to PLN 10,000,000.00, debt assignment PKO BP overdraft facility Warszawa 5 000 thousands PLN thousands PLN WIBOR 1M + 1,00% within 19.05.2006 blank promissory note, executory title up to PLN 10,000,000.00, debt assignment 16 415 * Debt securities have been issued in order to diversify sources of financing of Elektrobudowa SA. Each issue is secured by the Company s receivables. As 31 December 2005 the receivables subject to assignments amount to PLN 78,531 thousand. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 59

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Current loans and borrowings as 30 June 2005 Amount of loan as per contract Amount to be repaid Registered Lender Effective interest re Murity office unit currency in PLN'000 unit currency in PLN'000 in foreign currency in foreign currency Security BRE BANK S.A. overdraft facility Warszawa 3 000 thousands PLN 1 862 thousands PLN WIBOR 1M+1,5% 30.09.2005 1 blank bill - debt assignment executory title up to 3,600,000 PLN BANK HANDLOWY overdraft facility Warszawa 6 130 thousands PLN 4 635 thousands PLN WIBOR T/N+0,6% renewable every 7 days debt assignment (125% of commitment) executory title up to PLN 10,800,000.00 ING BANK ŚLĄSKI overdraft facility Kowice 8 000 thousands PLN 7 227 thousands PLN WIBOR 1M+0,7% 29.05.2006 executory title up to PLN 12,000,000.00 mortgage security - KW 64174 up to PLN 2,000,000.00 incl. policy assignment, mortgage security - KW 56388 up to PLN 1,000,000.00 incl. policy assignment, debt assignment ING BANK ŚLĄSKI foreign currency loan Kowice 410 thousands EUR thousands EUR EURIBOR 1M+1,5% 10.07.2006 tytuł egzekucyjny do 876.000,00 EUR kaucja pieniężna do 136.750,00 EUR cesja wierzytelności do 1.094.000,00 zł. BANK BPH S.A. overdraft facility Kraków 8 000 thousands PLN 7 131 thousands PLN WIBOR 1M+0,75% 19.04.2006 debt assignment least PLN 10,000,000.00, mortgage security - KW 13390 up to PLN 8,516,615.00, 6 blank promissory notes PKO BP working capital facility Warszawa 5 000 thousands PLN 5 000 thousands PLN WIBOR 1M+1,0% 19.05.2006 mortgage security KW 43349 up to PLN 6,300,000.00 with policy assignment, executory title up to PLN 10,000,000.00 debt assignment PKO BP overdraft facility Warszawa 5 000 thousands PLN 4 652 thousands PLN WIBOR 1M+1,0% 19.05.2006 blank promissory note executory title up to PLN 10,000,000.00 debt assignment 30 507 Effective interest res of loans and borrowings approxime nominal res; fair values of loans and borrowings (for their short-term nure) approxime their carrying amounts. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 60

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 20. Deferred income tax 30 June 2006 31 Dec 2005 30 June 2005 Deferred income tax assets (4 453) (5 227) (3 675) - deferred tax assets to be recovered after more than 12 months (799) (819) (557) - deferred tax assets to be recovered within 12 months (3 654) (4 408) (3 118) Deferred income tax liabilities 5 092 4 786 3 553 - deferred tax liabilities to be recovered after more than 12 months 605 641 652 - deferred tax liabilities to be recovered within 12 months 4 487 4 145 2 901 639 (441) (122). The notes on pages 10 to 85 are an integral part of these consolided financial stements. 61

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 20.1 Deferred income tax assets 30 June 2006 31 Dec 2005 30 June 2005 Movement in deferred tax assets Deferred tax assets the beginning of period charged into income stement 5 227 3 503 3 503 Additions - due to negive temporary differences credited to the income stement: 3 237 4 375 2 745 - revaluion of assets 92 457 254 - provisions for unused holidays 17 117 21 - interests charged on liabilities 2 3 6 - amounts due from construction contracts customers 1 910 2 409 1 403 - provisions for pension and other benefits 0 121 0 - provisions for future commitments 1 121 1 232 1 021 - discount of receivables 83 0 0 - exchange differences balance sheet de 12 36 40 Reductions - due to negive temporary differences charged to the income stement: (4 011) (2 651) (2 573) - revaluion of assets (105) (421) (420) - provisions for unused holidays (117) (50) (50) - provisions for pension and other benefits (15) (10) (8) - interests charged on receivables (2) (29) (29) - amounts due from construction contracts customers (2 409) (1 595) (1 595) - provisions for future commitments (1 218) (136) (128) - exchange differences balance sheet de (35) (146) (146) - prior years' tax loss 0 (17) 0 - discount of receivables (96) (247) (189) - provision for auditing the financial stements (14) 0 (8) The movement credited / charged to the income stement (774) 1 724 172 Deferred tax assets the end of period, of which: 4 453 5 227 3 675 - credited to the income stement 4 453 5 227 3 675 No deferred tax asset has been origined on the differences, which in the opinion of the Company cannot reduce the tax base in future periods. The differences amount to PLN 2, 849 thousand (taxable amount).. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 62

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) At 30 June 2006 within 12 months over 12 months Deferred tax assets in the period of which: - interests on liabilities - balance sheet valuion of exchange differences - revaluion of assets - provisions for pension benefits - accounts payable due to construction contracts - provisions for bonuses - provisions for unused holidays - provisions for unpaid salaries and social security benefits - provisions for future liabilities - due to discount of non-current receivables 10 0 12 0 590 209 1 336 1 909 0 253 0 17 0 772 0 90 0 0 254 3 654 799 Deferred tax assets in the period of which: - interests on liabilities - balance sheet valuion of exchange differences - revaluion of assets - provisions for pension benefits - accounts payable due to construction contracts - provisions for bonuses - provisions for unused holidays - provisions for unpaid salaries and social security benefits - provisions for future liabilities - due to discount of non-current receivables At 31 December 2005 within over 12 months 12 months 8 0 35 0 609 203 3 349 2 409 0 401 0 117 0 656 0 170 0 0 267 4 408 819. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 63

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Deferred tax assets in the period of which: At 30 June 2005 within 12 months over 12 months - interests on liabilities - balance sheet valuion of exchange differences - revaluion of assets - provisions for pension benefits - accounts payable due to construction contracts - provisions for bonuses - provisions for unused holidays - provisions for unpaid salaries and social security benefits - provisions for future liabilities - due to discount of non-current receivables 16 0 39 0 610 0 0 232 1 403 0 85 0 21 0 742 0 202 0 0 325 3 118 557 20.2 Provision for deferred income tax 30 June 2006 31 Dec 2005 30 June 2005 Movement in provision for deferred income tax Provision for deferred income tax the beginning of period - reflected in the income stement 4 786 2 095 2 095 Additions - reflected in the income stement for the period, due to positive temporary differences, of which: 4 369 4 040 2 726 - amounts due fro construction contracts 4 177 3 924 2 691 - FORWARD contract valuion 72 34 35 - discount of liabilities 36 70 0 - balance sheet valuion of exchange differences 84 12 0 Reductions - reflected in the income stement for the period, due to positive temporary differences, of which: (4 063) (1 349) (1 268) - interest charged on overdue debt 0 0 0 - reversal of investment relief provision (77) (175) (94) - balance sheet valuion of exchange differences (12) (10) (10) - amounts due from construction contracts (3 924) (1 164) (1 164) - discount of liabilities (16) 0 0 - FORWARD contract valuion (34) 0 0 Total provisions for deferred income tax the end of period - reflected in the income stement 5 092 4 786 3 553. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 64

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 within over 12 months 12 months Provision for deferred income tax in the period, of which: - amounts due from construction contracts 4 177 0 - FORWARD contract valuion 73 0 - discount of liabilities valuion 0 89 - exchange differences 84 0 - investment relief 153 516 4 487 605 31 December 2005 within over 12 months 12 months Provision for deferred income tax in the period, of which: - amounts due from construction contracts 3 924 0 - FORWARD contract valuion 34 0 - discount of liabilities valuion 0 70 - exchange differences 12 0 - investment relief 175 571 4 145 641 30 June 2005 within over 12 months 12 months Provision for deferred income tax in the period, of which: - amounts due from construction contracts 2 691 0 - exchange differences 35 0 - investment relief 175 652 2 901 652. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 65

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 21. Provisions for liabilities and other charges 30 June 2006 31 Dec 2005 30 June 2005 Movement in non-current provisions for pension benefits beginning of period 2 040 1 251 1 251 Additions (due to) 0 820 0 - creing the provision (actuarial valuion) 0 820 0 Utilision (due to) (273) (31) (42) - payment of pension benefits (273) (31) (42) End of period 1 767 2 040 1 209 Main actuarial assumptions adopted for establishing pension benefits are following: 30 June 2006 31 Dec 2005 30 June 2005 discount re 4,7% 4,7% 6,3% forecasted inflion 2,5% 2,5% 2,5% forecasted increase in salaries 3,5% 3,5% 3,5% mobility re 9,8% 9,8% 9,5%. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 66

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 30 June 2006 31 Dec 2005 30 June 2005 Movement in current provisions beginning of period 634 36 36 Additions, of which: 0 620 599 - actuarial valuion 0 0 99 - provision for correction works 0 620 500 Utilision (due to) (59) (22) (22) - payment of pension benefits (8) (22) (22) - revaluion of provision for corrective works expenses (51) 0 0 End of period 575 634 613 of which: current provisions for corrective works 569 620 500 current provisions for retirement benefits 6 14 113 The entities in the Group cree provisions for future payables which murities or amounts are not certain. Particularly, a provision is recognised for corrective works and warranty repairs, as contracts for the supply of electrical installion services and equipment require relevant guarantees provided for the customers. Generally, a provision of 0.5% of contract revenues is made for warranty repairs. Provisions for retirement benefits are estimed by an actuary. 22. Accrued expenses 30 June 2006 31 Dec 2005 30 June 2005 accrued expenses due to unused holidays 91 617 109 accrued expenses due to annual bonuses 1 329 2 112 507 accrued expenses due to services 250 200 618 accrued expenses due to auditing the financial stements 0 75 0 grant received 220 220 0 1 890 3 224 1 234. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 67

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 23. Sales revenues six months ended 30 June 2006 30 June 2005 Sales construction and installion services electrotechnical products 116 877 89 160 36 320 29 617 3 112 3 708 other services merials sold 2 315 2 435 158 624 124 920 Sales domestic six months ended 30 June 2006 30 June 2005 138 020 112 683 1 386 2 507 export sales by the subsidiary in the Russian Federion 19 218 9 730 158 624 124 920 Export sales are done by the Power Distribution segment and Power Generion segment. six months ended 30 June 2006 30 June 2005 Sales of construction and installion services 116 877 89 160 of which revenues from contracts in progress 103 020 66 636 movement in revenues calculed according to accrual (3 963) (9 049) basis discount of non-current receivalbes 437 40 earned positivie differences 0 (3) invoiced sales 113 351 80 148 costs incurred 115 591 83 411 recognised profit net of losses (2 240) (3 263). The notes on pages 10 to 85 are an integral part of these consolided financial stements. 68

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 24. Construction contracts Accounts receivable from the customers and accounts payable to the customers are recognised only in the parent company, as other Group entities has not executed long-term construction contracts. 24.1 Amounts due from customers for construction contract work 30 June 2006 31 Dec 2005 30 June 2005 Accounts receivable from construction contracts 21 985 20 650 14 164 The Parent presents as an asset the amount due from customers for contract work for all contracts in progress, for which the aggrege amount of costs incurred and recognized profits (less recognized losses) exceeds progress billings, except retentions which are included in non-current assets within trade and other receivables, The Management Board of the parent uses a contract budget, the stage of completion and ability to continue the works to estime the outcome of a contract. 24.2 Amounts due to customers for contract work 30 June 2006 31 Dec 2005 30 June 2005 Accounts payable due to construction contracts 10 049 12 677 7 384 The Parent presents as a liability the amount due to customers for contract work for all contracts in progress for which progress billings exceed costs incurred plus recognised profits (less recognised losses). The Management Board of the parent uses a contract budget, the stage of completion and ability to continue the works to estime the outcome of a contract.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 69

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 25. Expenses by nure Expenses by nure Depreciion and amortision Merials and electricity Third party services Taxes and charges Salaries and wages Social security and benefits six months ended 30 June 2006 30 June 2005 2 251 2 602 73 254 58 325 47 667 26 290 1 136 1 073 24 309 21 377 6 456 5 585 2 976 3 298 Other expenses by nure, of which: representive and advertising expenses 460 258 business travels 1 045 1 389 property and personal insurance 606 502 other 865 1 149 Total expenses by nure Movement in inventories, products and accrued expenses Cost of products manfactured for own needs (negive value) Distribution expenses (negive value) General administrive expenses (negive value) Cost of merial sold 158 049 118 550 (6 404) (315) (640) (485) (982) (326) (3 723) (4 058) 2 211 2 385 148 511 115 751. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 70

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 26. Other gains (losses) net six months ended 30 June 2006 30 June 2005 Other gains (losses) - net Proceeds from disposal of non-finance non-current assets 40 12 Donions (52) (42) Impairment 527 (1 195) Interest charged and received on overdue payments 179 296 Impairment of receivables (612) (346) Unjustified indirect costs (114) (43) Payments other than remunerion (46) (77) Exchange differences 593 447 FORWARD contract valuion 200 0 Commission and fees (496) (370) Legal charges (146) (136) Revenue from forward contracts 136 0 Other 537 92 746 (1 362) 27. Finance income (expenses) net six months ended 30 June 30 June 2006 2005 Finance gains (costs) - net Interest on borrowings (546) (997) Discount of receivables 504 995 (42) (2). The notes on pages 10 to 85 are an integral part of these consolided financial stements. 71

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 28. Income tax six months ended 30 June 2006 30 June 2005 Current income tax Gross profit (loss) 6 112 3 421 Consolidion differences 1 167 92 Gross profit (loss) after consolidion differences 7 279 3 513 Differences between gross profit (loss) and income tax basis (by titles) a) expenses and losses, which in accordance with the regulions are permanently not deductible for tax purposes b) expenses and losses, which in accordance with the regulions are temporarily not deductible for tax purposes (4 990) (6 759) 743 1 322 (5 733) (8 081) - charged and not paid interests on liabilities 0 (2) - provisions for unused holidays (526) (154) - impairment of receivables (302) (2 320) - provision for settlement of long-term contracts (3 963) (9 049) - foreign exchange differences due to balance-sheet valuion (501) (690) - - tangible assets depreciion due to investment relief for 1995-1999 404 496 - unpaid remunerions 284 2 206 - provision for auditing the accounts (75) (42) - provision for annual bonuses (783) 88 - provision for unnecessary or difficult-to-sell inventories (10) (34) - provision for correction works (51) 500 - provision for pension benefits and similar (78) (43) - Nional Security benefits payable by the taxpayer 325 1 658 - discount of receivables (66) (995) - discount of liabilities (102) 0 - impairment of PPE fair value 28 74 - interest on overdue debt (4) (4) - FORWARD contract valuion (200) 0 - provision for third party services 50 268 - provision for future liabilities 7 (15) - VAT in the legal, bankruptcy or arrangement proceedings (170) (23) Tax base Income tax 2 289 (3 246) 541 232 Current income tax recognised in tax declarion for the period, of which: - charged to the income stement 541 232 Deferred income tax charged to the income stement 1 081 1 286 1 622 1 518. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 72

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Profit before taxion 6 112 3 421 Tax calculed domestic tax res applicable to profits in the respective 1 243 721 Expenses countries not deductible for tax purposes 302 251 Tax losses for which no deferred income tax asset was recognised 0 795 Movement in other temporary differences of which no deferred income tax assets were recognised 77 (249) Income tax 1 622 1 518 Tax authorities carried out a tax inspection for the years 1997 and 1998: no essential tax corrections were requested. Tax authorities may inspect the books and tax documents of the Company within 5 years after the year in which tax declarions were submitted and charge the Company with additional tax including interest and penalties. In the opinion of the Management Board there are no circumstances indicing the possibility of any reled essential liabilities to arise. Income tax of the consolided companies for six months ended 30 June 2006 Income tax Current portion Deferred portion ELEKTROBUDOWA SA 1 112 31 1 081 KRUELTA SP. Z O.O. 508 508 0 KONIP SP.Z O.O. 2 2 0 1 622 541 1 081 for 2005 Income tax Current portion Deferred portion ELEKTROBUDOWA SA 2 130 1 181 949 KRUELTA SP. Z O.O. 526 508 18 KONIP SP.Z O.O. 30 30 0 2 686 1 719 967. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 73

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) for six months ended 30 June 2005 Income tax Current portion Deferred portion ELEKTROBUDOWA SA 1 286 0 1 286 KRUELTA SP. Z O.O. 212 212 0 KONIP SP.Z O.O. 20 20 0 1 518 232 1 286 The above figures represent the amounts in the income tax item lines of income stements of the entities in the Group, which include income tax reduced or enlarged by the change in deferred tax provision/asset. 29. Earnings per share Calculion of diluted earnings per ordinary share for H1 ended 30 June 2006 average market price of shares 47,03 option exercise price 21,10 Earnings Shares Earnings per share net profit for the period (in PLN) 3 942 512 weighted average number of shares 3 971 000 earnings per share 0,99 weighted average number of shares (option plan) 249 096 weighted average number of shares to be issued average market price (111 757) diluted earnings per share 3 942 512 4 108 339 0,96. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 74

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Calculion of diluted earnings per ordinary share for H1 ended 30 June 2005 average market price of shares 25,54 option exercise price 21,10 Earnings Shares Earnings per share net profit for the period (in PLN) 1 574 436 weighted average number of shares 3 971 000 earnings per share 0,40 weighted average number of shares (option plan) 249 096 weighted average number of shares to be issued average market price (205 792) diluted earnings per share 1 574 436 4 014 304 0,39 30. Dividend per share In 2005 ELEKTROBUDOWA S.A. (the parent company) paid the dividend for 2004 of 1.00 zloty per share; dividend for 2005 paid in August 2005 was 1.50 zloty per share. 31. Cash flow stement Cash recognized in the cash flow stement means monetary assets in the form of domestic currency and foreign currencies. as 30 June 2006 31 Dec 2005 30 June 2005 Cash structure for cash flow stement Cash bank and in hand 17 249 10 104 6 678 Division of activities assumed in the cash flow stement. Opering activities cover business operions defined in the Company Articles which is performed with the objective to genere revenues from sales. They also include other operions (except investing and financial activities) which have impact on the income. Investing activities cover purchases or disposals of property, plant and equipment or current financial assets and all cash expenses and gains reled to them. Financing activities cover all operions reled to gaining or losing sources of finance (movements in volume and relions between equity and borrowed capital) all cash expenses and gains reled to them.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 75

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Explanion of differences between balance sheet changes in certain items and changes in those items recognised in the cash flow stement: six months ended 30 June 2006 30 June 2005 Movement in trade and other receivables balance sheet change in receivables, of which: balance sheet change in trade and other receivables - recognised in non-current assets balance sheet change in trade and other receivables - recognised in current assets net movement in receivables from disposal of non-current assets 13 618 14 628 1 032 589 12 586 14 039 (156) (413) 13 462 14 215 six months ended 30 June 2006 30 June 2005 Movement in trade and other payables balance sheet change in trade and other payables blanace sheet change in payables due to bank loans and debt securities blanace sheet change in payables due to construction contracts income tax paid changes idue to deferred tax change in payables due to dividend unpaid interests on borrowings change in accrued expenses change in net investing expenditure repayment of lease commitments 13 828 (3 104) (4 962) (9 024) 2 628 1 012 1 361 1 525 (639) 0 (5 985) (4 000) (7) 0 1 334 (366) 614 1 265 28 21 8 200 (12 671). The notes on pages 10 to 85 are an integral part of these consolided financial stements. 76

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) six months ended 30 June 2006 30 June 2005 Other adjustments tangible fixed assets made in the company unfinished development works other forward contract valuion (199) (239) (441) (246) 141 404 (200) 0 (699) (81) 32. The Management Board and the Supervisory Board Composition of the Boards of the parent company Supervisory Board Dariusz Mańko - Chairman Michał Wnorowski - Vice-chairman Michał Boni - Board member Arkadiusz Julke - Board member Roman Zalewski - Board member Dariusz Wojda - Board member Management Board Jacek Faltynowicz - President Jarosław Tomaszewski - Board member Ariusz Bober - Board member Tomasz Jaźwiński - Board member Stanisław Rak - Board member Aggrege amount of remunerion (including performance reled bonus) and rewards (in cash and in kind), paid to the members of the Management Board and the Supervisory Board by the parent company Key management compension paid and due in the first half of 2005 and the first half of 2006: as 30 June 2006 Basic salary paid Bonuses Total paid payments as 30 June 2005 Basic salary paid Bonuses paid Total payments Management Board Supervisory Board 800 858 1 658 770 145 183 0 183 151 0 915 151. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 77

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) In 2006 costs provision in the amount of 860 thousand zloty for bonuses to be paid to the Management Board members of Elektrobudowa SA was creed. As results from the employment contracts provisions on the prohibition to conduct competitive activity, Members of the Management Board have the right to compension in the amount equal to 100% of basic remunerion for each month of the prohibition of competition, during 12 months after terminion of employment in Elektrobudowa SA. Members of the Management Board participe in the plan of issuance of bonds convertible to series C shares. In 2005 they paid and were allotted 212 500 bonds (1bond=1 share). Issue price of series C shares was established PLN 21.10. Market price of Elektrobudowa s shares was PLN 36.80 31 December 2005 and PLN 54.00 30 June 2006. Disclosures on the amount of advances, loans, borrowings and guarantees extended to the members of the Boards of the Parent and not yet repaid As 30 June 2006 the Group did not extend any guarantees or borrowings to the members of the Boards. 33. Polish zloty exchange res Polish zloty exchange res in the periods covered by the consolided financial stements and the comparive consolided financial figures In the consolided financial stements and the separe financial stements of Elektrobudowa S A for the first half of 2006 profit and loss items in the table Selected Financial Da have been transled according to the re being the arithmetic mean of average euro res announced by the Nional Bank of Poland the end of each month of the first six months of 2006, i.e. 3.9002. Average EURO res over the first half of 2006. De of announcement EURO re Table 31.01.2006 3.8285 22/A/NBP/2006 28.02.2006 3.7726 42/A/NBP/2006 31.03.2006 3.9357 65/A/NBP/2006 28.04.2006 3.8740 84/A/NBP/2006 31.05.2006 3.9472 105/A/NBP/2006 30.06.2006 4.0434 126/A/NBP/2006 01.01. 30.06.2006 23.4014: 6 = 3.9002. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 78

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 34. Reled party transactions In the first half of 2006 both ELEKTROBUDOWA SA and its subsidiaries entered only into typical, routine transactions made on an arm s length basis between the reled parties and resulting from day-to-day business operions of the entities in the Group Balances and transactions between the Group entities were elimined and do not impact these financial stements. Balances with the parent Transactions carried out by Elektrobudowa SA with reled parties in the reporting period: - sales of products to Kruelta 8 433 thousand PLN - sales of products to Konip 42 thousand PLN Sales realized by the subsidiaries to Elektrobudowa SA: - KRUELTA - thousand PLN - KONIP 366 thousand PLN Financial da reling to the subsidiaries Mutual settlements as the balance sheet de amount to PLN 65 thousand, which in whole cover Elektrobudowa s liability to Konip. No substantial eliminions of unearned profit were made. 35. Financial instruments Financial instrument informion Receivables Proceeds from interest (charge and realised) on receivables in H1 2006 amount to PLN 203 thousand (PLN 513 thousand in H1 2005). Available-for-sale financial assets Carrying amount of interest in BIPROHUT 30 June 2006 and 30 June 2005 was PLN 879 thousand.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 79

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Derivive financial instruments In order to reduce the risk of drop in exchange re, which could have and adverse effect on the level of selling prices, the Parent company used forward contracts as cash flow hedges. Proceeds from hedged transactions in H1 2006 amounted to PLN 136 thousand and the valuion of contract as 30 June 2006 charged to other net income was PLN 381 thousand. 36. Investments 30 June 2006 31 Dec 2005 30 June 2005 Investments in progress beginning of period 1 184 1 482 1 482 Expenditure in the reporting period 3 603 5 823 2 443 of which: - manufacture cost by own means 199 248 239 - cost of third party services 1 323 2 244 916 - cost of purchased machines, plant and services 2 081 3 331 1 288 Investment received to fixed tangible assets and intangible assets 2 739 6 121 3 526 Investments in progress end of period 2 048 1 184 399 of which: - Fixed tangible assets investments in progress 850 426 135 - intangible assets investments in progress 1 198 758 264 Only the parent company realised the investments which were still in progress the balance sheet de. 37. Contingencies a) guarantees As 30 June 2006 only the parent company, ELEKTROBUDOWA SA provided performance bonds and warranty bonds through: 30 June 2006 30 June 2005 T.U ALLIANZ POLSKA S.A. PLN 16 461 185,59 14 447 300.08 BPH S.A. PLN 4 651 068,43 5 824 570.95 BRE Bank S.A. PLN 4 021 221,08 7 546 923.07 Bank Handlowy S.A. PLN 3 461 324,61 0.00 Gerling Towarzystwo Ubezpieczeniowe S.A. PLN 8 900 001,04 4 028 667.13 ERGO HESTIA S.A. PLN 233 736,15 1 246 254.39 PKO S.A. PLN 4 188 209,23 0.00 ING Bank Śląski S.A. PLN 4 033 981,28 4 065 791.21 GUARANTEES TOTAL PLN 45 950 727,41 37 159 506.83. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 80

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) b) Bills and promissory notes As 30 June 2006 ELEKTROBUDOWA SA issued promissory notes for the total amount of PLN 8 195 376,52, And also: 1. 18 bills of exchange issued in favour of BRE Bank SA O/Kowice as security for the loan and guarantees provided by the bank 2. 5 bills of exchange with without protest restriction as security for recourse claim of Ergo Hestia SA 3. 10 blank bills of exchange as security for insurance guarantee claim of TU Allianz Polska SA 4. 6 blank bills of exchange as security for bank loan from BPH SA 5. 5 blank bills of exchange with without protest restriction in favour of Gerling Polska TU SA as security for extended guarantees 6. 1 blank bill of exchange as security for bank loan PKO BP SA 7. 1 blank bill as security for loan from Bank Handlowy w Warszawie SA As 30 June 2005 ELEKTROBUDOWA SA issued promissory notes for the total amount of PLN 6,987,920.27, and also: 1. 27 bills of exchange issued in favour of BRE Bank SA O/Kowice as security for the loan and guarantees provided by the bank 2. 5 bills of exchange with without protest restriction as security for recourse claim of Ergo Hestia SA 3. 10 blank bills of exchange as security for insurance guarantee claim of TU Allianz Polska SA 4. 5 blank bills of exchange as security for bank loan from BPH SA 5. 5 blank bills of exchange with without protest restriction in favour of Gerling Polska TU SA as security for extended guarantees 6. 1 blank bill of exchange as security for bank loan PKO BP SA c) Investment relief Following the Regulion of the Council of Ministers of 25 January 1994 on deducting investment expenditure from the income and on income tax reductions, as well as the corpore income tax law of 15 February 1992 (as amended), in 1994-1999 the parent company exercised its right to relief in the amount of PLN 24,302 thousand. In 1995-2000 the parent company made a deduction of investment premium, payable on capital expenditure, in the amount of PLN 10,628 thousand. The relief is of contingent nure. Provisions of the above mentioned law stipule th the right to investment relief or investment premium may be lost if one of the following circumstances occurs within 3 years: a) a taxpayer has fallen into arrears in payment of taxes which are income for the Budget or of nional insurance contributions, which arrears, separely for each title (of which separely for each kind of tax) are greer than 3 % of amounts due for these years, b) taxpayers will transfer in any form ownership of those property items which were subject to income deductions or tax reductions; it does not apply, however, to transfer of ownership due to change of legal form, merger or division of business entities,. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 81

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) c) circumstances ceased to exist which had allowed for recognising the items of fixed tangible assets, used against payment on the grounds of lease, rent or similar agreements, in taxpayer s property, d) a taxpayer is forced to go into liquidion or his bankruptcy has been declared, e) a taxpayer has received any kind of return of investment expenditure. The act on amendment to a law on corpore income tax of 20 November 1998 provides th in the appraisal of a loss of the right to deductions for reasons specified in a) above it is assumed th the loss of the right does not occur if the taxpayer submits a correction of the tax declarion and pays the arrears together with due interest in the time provided by the act or within 14 days since the receipt of decision issued by the body of first instance specifying the tax obligions. As 30 June 2006 the parent company fulfilled all requirements to enjoy the right to the described deductions. Risks reled to investment relief will be time-barred by the end of 2006. d) Rental commitments Current (as 30 June 2006) rental agreements have been concluded for 2 years average. Total agreed rent in this period will amount to PLN 2472 thousand. As 30 June 2005 contractual rental value earned within 2 years was PLN 1,722 thousand. 38. Events after the balance sheet de On 12 July 2006 the Parent repaid another tranche of debt securities issue in the amount of PLN 5978 thousand. Further issues took place: 12 July 2006, amount: PLN 5 971 thousand (repayment: 18 August 2006); 18 August 2006 amount: PLN 8 961 thousand (repayment:20 September 2006).. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 82

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 39. Employees Number of employees by occupional cegories average number of employees in H1 2006 average number of employees in 2005 average number of employees in H1 2005 Total number of employees (in full-time posts) of which: Workers White-collar employees Persons on unpaid or child care leaves 1 241 1 194 1 148 725 713 685 509 475 456 7 6 7 40. Changes in the applied accounting standards In H1 2006 the Group did not change the accounting standards applied so far. Beginning with 1 January 2005 the consolided financial stements of the Group have been prepared in compliance with IFRS with 1 January 2004 as the transition de. 41. Essential estimes and assumptions The Group makes estimes and assumptions concerning the future. The resulting accounting estimes will, by definition, seldom equal the reled actual results. Significant estimes and judgements are discussed below. Judgments by management were applied in estiming the effect of hyperinflion on the amount of share capital and reserves (details in Note 15), in estiming the amount of provisions for warranty works (details in Note 21) and in estiming receivables and payables due to long-term construction contracts (details in Note 24). Informion on Elektrobudowa s influence on the opering and financial policy of Biprohut is disclosed in Note 9, and the opinion of the Management Board of Elektrobudowa SA on impairment of Kruelta receivables in Note 11.2.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 83

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) 42. Additional notes Distribution of 2005 profit: of the parent Following the Resolution No. 14 of the Annual General Meeting Elektrobudowa SA on 19 May 2006 the net profit of the parent company for 2005 in the amount of PLN 8,735,024.20 was distributed in the following way: a) dividend: PLN 5,956,500.00; b) dividend servicing: PLN 28,000.00; c) reserve capital: PLN 2,750,524.20. of the subsidiaries Following the Resolution of the Annual General Meeting, the 2005 net profit of Kruelta in the amount of 14,509,087.00 roubles was distributed in the following way: a) increase of share capital (basic) 14,509,000.00; b) increase of prior years undistributed profit 87 roubles. Following the Resolution no. 6 of the Annual General Meeting on 28 June 2006, the 2005 net profit of Konip in the amount of PLN 69,511.36 increased the company s reserve capital. Informion on implemention of resolution 100/III/2002 adopted by the Supervisory Board of Elektrobudowa SA To implement the resolution 100/III/2002 of the Supervisory Board ded 23 May 2002, in July 2005 the Management Board adopted a resolution to grant to the selected group of Elektrobudowa s employees the convertible bonds with the right to subscribe for 249,096 series C shares for the price of 21.10 zlotys per share. The right will be exercised between 1 and 30 September 2006. There are no other conditions required for granting the shares. Comparability of the consolide financial stements The comparable da have been presented according to the same standards as were adopted for preparing the separe financial stements for H1 2006. Seasonality of business Sales are subject to seasonality in the whole construction sector in which the company conducts its business. In H1 2006 the effect of seasonality was eased due to by far better distribution in time, both in respect of performed services and obtained income from sales, as compared with the same period of the preceding year. Sales revenues in H1 2006 constitute 41.4 % of the sales assumed in the Group budget for 2006, whereas revenues for H1 2005 constituted only 36.2 % of annual revenues.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 84

The interim consolided financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the consolided financial stements (continued) Legal claims against the parent company and the subsidiaries There are no essential legal claims against the parent company or the subsidiaries In the opinion of the Management there are no circumstances indicing any substantial obligions to arise. Amounts due to the Budget or local government for obtaining the right to buildings or structures. As 30 June 2006 the Group had not had any debt towards the Budget or local government due to obtaining the right to buildings or structures. Significant events from previous years disclosed in the financial stements for the current period There were no significant events concerning prior years, which should be disclosed in the H1 2006 report. Capital expenditure and off-balance sheet commitments due to the acquisition of fixed tangible assets The Group s capital expenditure in H1 2006 amounted to PLN 3.603 thousand. There are no commitments due to fixed tangible assets purchase contracts signed by the Group s entities. The Management Board Stement The Management Board of Elektrobudowa SA announces th they approve the present consolided financial stements of the Group for the six months ended 30 June 2006.. The notes on pages 10 to 85 are an integral part of these consolided financial stements. 85

SIGNATURES OF ALL MANAGEMENT BOARD MEMBERS Name and surname Position / Function De Signure Jacek Faltynowicz Jarosław Tomaszewski Ariusz Bober Stanisław Rak Tomasz Jaźwiński President Board Member Board Member Board Member Board Member SIGNATURE OF A PERSON ENTRUSTED WITH MAINTAINING THE ACCOUNTING BOOKS Name and surname Position / Function De Signure Danuta Tomaszewska Chief Acccountant.. 86

DIRECTOR S REPORT ELEKTROBUDOWA SA GROUP Six months ended 30 June 2006 1

1. Structure of Elektrobudowa SA Group. 1.1. Parent - Elektrobudowa SA with its registered office 12, Porcelanowa Street, 40-246 Kowice. Principal activity of the Company, according to the Polish Classificion of Activities (PKD 4531 A), is executing of electrical installions in building and structures. A sector according to the Warsaw Stock Exchange classificion: building. The business activity of Elektrobudowa SA includes: comprehensive electrical installion works as provided in all newly built, extended and modernized power stions and industrial facilities, supply of electric power equipment, mainly the energy transmission and distribution equipment, designing, engineering, testing and commissioning services. 1.2. A subsidiary - KRUELTA Sp. z o. o. /Ltd./ with its registered office 17a, Magnitogorska Street in Sankt Petersburg (The Russian Federion). Elektrobudowa SA holds 51% interest in KRUELTA Sp. z o.o., which represents 51% of KRUELTA equity. Principal business of KRUELTA is the assembly and sales of medium voltage switchgears in the Russian market. This offer is to be completed with the sale of low voltage switchgears and mobile containerized substions. 1.3. A subsidiary - KONIP Sp. z o.o. /Ltd./ with its registered office 12, Porcelanowa Street, Kowice. Elektrobudowa SA holds 100% interest in the equity of KONIP Sp. z o.o. KONIP Sp. z o. o. deals with administrion of real property belonging to Elektrobudowa SA or property which is held by it in perpetual usufruct, and in particular with technical maintenance and administrion of buildings and structures, hire of free usable areas, fire-fighting service, cleaning of premises and area as well as protection of property, rendering telecommunicion services, keeping archives and reception services. As from 1 January 2005 consolided financial stements of Elektrobudowa SA Group have been prepared in compliance with the Internional Financial Reporting Standards adopted by the European Union. 2. Current and anticiped financial situion. Basic economic and financial figures. 2.1. Receipts from sales. Basic Products and Services. In the first half of 2006 ended 30 June receipts from the sale of products, services and merials of the ELEKTROBUDOWA SA Group amounted to PLN 158,624 thousand. Income from basic Group activity, i.e. performance of building and assembly services in the field of electric installion works made up the biggest share in sales. These sales amounted to 116,877 thousand PLN and constituted 73.6 % of all sales income. 2

The table below presents the net income structure from the sale of products, goods and merials in the first half of 2006 and 2005. H1 2006 H1 2005 Change PLN 000 % PLN 000 % PLN 000 Revenues from sale of 158 624 100.0 124 920 100.0 + 33 704 products, goods and merials Building and assembly 116 877 73.6 89 160 71.4 + 27 717 services Electrotechnical products 36 320 22.9 29 617 23.7 + 6 703 Other services 3 112 2.0 3 708 3.0-596 Merials and goods 2 315 1.5 2 435 1.9-120 ELEKTROBUDOWA SA Group specializes in the production of equipment used for the transmission and distribution of electric energy; it made up 22.9 % share in the sales income in share in the sales income in the first half of 2006. One of the main stregic objectives of the Group is to maintain the position of principal supplier on the Polish market of medium-voltage switchgear. In H1 2006 industrial products for the sum of 56 109 thousand PLN were sold. This sale amount was shared by installion units - 19 789 thousand PLN and thousand PLN and direct (external) sales which amounted 36 320 thousand PLN. These figures include sales effected in Russia by the subsidiary entity KRUELTA in the amount of 18 951 thousand PLN. Production quantities of the most important products. Type of product Unit of Quantity measure H1 2006 H1 2005 Medium voltage switchgear cubicle 807 651 Low voltage switchgear panel 540 137 Busducts m 362 354 Cable trays tons 77 31 Container stions sets 37 28 Value of manufactured products. Type of product H1 2006 H1 2005 Value Structure (%) Value (PLN 000) Structure (%) (PLN 000) Medium voltage switchgear 22 607 40.3 28 073 60.4 Low voltage switchgear 10 994 19.6 3 805 8.2 Container stions 17 683 31.5 10 624 22.9 Busducts 1 235 2.2 1 605 3.5 Cable trays 675 1.2 209 0.4 Other 2 915 5.2 2 154 4.6 Total 56 109 100.00 46 470 100.0 3

2.2 Financial result and basic factors as well as untypical events affecting its value In H1 2005 receipts from sales of the Elektrobudowa SA Group equalled 158 624 thousand PLN and increased by as much as PLN 33.7 million, th is by 27,0 % as compared with the same period of the preceding year. Increase of revenues was noted both in the Parent, Elektrobudowa SA (by PLN 24.2m) and its subsidiary Kruelta (by PLN 9.5m). Due to seasonality of the business characteristic for construction sector in which the Parent operes, sales revenues of the Elektrobudowa SA Group constitute only 41.4 % of the sales assumed in the Group budget for 2006. However, it is by far better distribution in time, both in respect of performed services and obtained income from sales, as compared with the year 2005, when the Group sales revenues for the first half of the year constituted only 36.2 % of annual revenues. Increase in revenues of the parent Elektrobudowa SA results from execution of the following contracts: 1 KAUFLAND facility in Gdynia 13 750 thousand PLN 2 Modernision of substions GPZ-1 and GPZ-2 for PKN ORLEN 6 538 thousand PLN 3 FGD plant in the BOT Belchow P.S. 5 866 thousand PLN 4 Hypernowa retail in Tczew 4 700 thousand PLN 5 Modernision of turbine house BLC in O-2 Polish Radio Warsaw 4 530 thousand PLN 6 Biedronka retail in Białołęka 3 446 thousand PLN 7 Modernision of GKN substions in the Połaniec He & Power Plant 3 260 thousand PLN 8 Extension of the power distribution substion in the Coking Plant Zdzieszowice 3 136 thousand PLN 9 Electrical installions for GSE in Bielawa 3 063 thousand PLN Growth of revenues in KRUELTA is tributable to the execution of big contracts of sale of medium and low voltage switchgear assemblies and containerized substions in the territory of Russia. The company s sales in the first six months of 2006 totalled PLN 19.2m and were PLN 9.5m greer than in the same period of the previous year. Relively low revenues of Kruelta in the first half of 2005 were tributable to the fact th it was the beginning of the company s business operions. In the second half of 2005 and in the first half of 2006 the Company fully developed its activities, consequently following its stregy and Business Plan for the year 2006. The main items in the Income Stement for H1 2006 and H1 2005 are as follows: H1 2006 H1 2005 Change PLN 000 % % PLN 000 PLN 000 Net revenues 158 624 100.0 124 920 100.0 + 33 704 Cost of products, goods and (148 511) 93.6 ( 115 751) 92.7 + 32 760 Merial sold Gross profit (loss) on sales 10 113 6.4 9 169 7.3 + 944 Selling costs ( 982) 0.6 (326) 0.3 + 656 Administrive expenses (3 723) 2.3 (4 058) 3.2-335 Other gains (losses) - net 746 0.4 (1 362) -1.1 + 2 108 Opering profit (loss) 6 154 3.9 3 423 2.7 + 2 731 Profit before tax 6 112 3.9 3 421 2.7 + 2 691 Profit (loss) - net 4 490 2.8 1 903 1.5 + 2 587 4

The Group s profit on sales for the two quarters of 2006 was PLN 10 113 thousand, by PLN 944 thousand higher than for the same period of the previous year. The 1st half of 2006 noted the reversal of prior years tendencies reled to seasonality of sales of the Group. The effect of seasonality was eased mainly by the substantially bigger revenue from sales reached by the Group entities and by far better breakdown of fixed and variable costs in the Group, owing to systemic cost control in the Group entities. Other net profits of the Group for the period from 1 January to 30 June 2006 are PLN 746 thousand (other opering income- PLN 3,121 thousand, other opering expenses- PLN 2,375 thousand). Major items of other opering income are: - reversal of provision for impairment of receivables PLN 1.156 thousand - positive translion differences from cash valuion PLN 593 thousand - forward contracts valuion, which is a result of applicion of financial instruments to hedge the exchange res PLN 381 thousand Major items of other opering expenses are: - impairment of receivables PLN 640 thousand - bank fees and charges PLN 497 thousand - remission of debt (arrangement with debtors) PLN 603 thousand Legal fees PLN 155 thousand In the first half of 2006 the Group earned the opering profit of PLN 6 154 thousand and 3.9% return on the level of opering profit. The Group s opering profit for the period between 1 January 2005 and 30 June 2005 was PLN 3,420 thousand and return on operions 2.7 %. For the first six months of 2006 the Group genered a loss on financing activity amounting to PLN 42 thousand. Financial income of the Group consists in the reversal of discount of long-term receivables (PLN 504 thousand), and the major item of financial costs is the interest on loans (PLN 546 thousand). Gross profit earned by the Group in the first half of 2006 totalled PLN 6,112 thousand, whereas net profit was PLN 4,490 thousand, of which profit tributable to the Company shareholders amounted to PLN 3,943 thousand. The whole amount of 2005 profit genered by Kruelta in the amount of PLN 850 thousand increased the share capital of this company. Elektrobudowa SA recognised this amount in the financial income, but it was not subject to eliminion from the Group profit within the consolidion adjustments. Return on sales for the two quarters 2006 on the level of net profit was 2.8 %; return on assets (ROA) for the period was 2.5 % and return on equity (ROE) 6.3 % (ROA and ROE rios were based on average value of assets and average value of equity). 2.3. Financial Resources Management In the first half of 2006 Elektrobudowa SA Group was fully capable of discharging itself of financial obligions both in relion to its suppliers and subcontractors as well as financial institutions. Current rio (current assets / current liabilities) as 30 June 2006 was 1.28 and quick rio (current assets inventories accruals receivables from long-term contracts / current liabilities) was 0.88. Trade receivables turnover rio the end of June 2006 (average trade receivables x 180 / sales revenues) was 95 days, by 33 days lower than in the same period of the previous year. Trade liabilities turnover rio (average trade liabilities x 180 / sales revenues) was 55 days, 13 days lower than the rio for H1 2005. 5

In H1 2006, as in the previous year, the cycle of paying the liabilities of the Group was relively long, as the financial situion of several contractors of the Group was very difficult. The Group s financial activity is conducted with the use of three sources of finance: - own funds, - credit lines in banks, - prive issue of bonds plan, which provides possibilities to take better advantage of mechanisms of the finance market. A factor which has significant impact on the financial activity of the Group is the political and economic situion in the whole world and in this part of Europe, which influences the forex market and also the decisions on interest res. In H1 2006 the Group intensified the actions to hedge the foreign exchange risk, which resulted in improvement of profitability of operions settled in foreign currencies. Stability of interest res as well as good financial and market standing of the Group contributed to enhancement of quality of collaborion with banks and allowed the Group entities to utilise loans and other products like guarantees, letters of credit, derivive transactions in a more effective way. In order to diversify the sources of funds, the Group, when needed, issues bonds within the frame of the Bond Issue Plan Agreement signed in July 2005, which provides issues up to the amount of PLN 30.0m. In 2006 the activities of the Group is aimed negotiing with banks such guarantee and credit line granting conditions th would secure the risk of banks and allow the Group entities to fully take advantage of the possibilities resulting from products offered by the banks. During th time the parent significantly developed its cooperion with insurance companies in the area of insurance guarantees. These activities were reflected by: - the very good credit situion of Elektrobudowa SA, - rapid increase of lines for bank and insurance securities, - flexible use of all sources of financing the level of 60% of the Company s possibilities. The Group closely monitors the contracting parties from the point of view of assessing their financial possibilities, which form the basis for the decision before concluding the contract. Furthermore, the subsidiary Kruelta uses on a broad scale a system of prepayments for future supplies of equipment, wh substantially improves financial liquidity of Kruelta and reduces the risk of failure to receive payments for the supplied equipment. The current financial situion of the Group allows it to effect its obligions on time and gives it the possibility of conducting additional investment activity, particularly in capital investment (bond issue). Elektrobudowa SA and other entities in the Group do not expect any risk of failure to meet their financial obligions in 2006. 2.4. Prospects for the Group activity development - significant risk factors and dangers As the entities of the Group estime, the year 2006 offers far better opportunities for conducting economic activities than earlier years. Elektrobudowa SA Group in H1 2006 not only noted increased receipts from sales but also obtained a record number of orders, which as 30 June 2006, amounted to 326.2 million PLN in the Parent which covered signed contract in progress or pending execution. The sale offer of the Elektrobudowa Group in 2006, similar as in previous years consisted of a whole range of already existing products and new items which complement the offer, making it more tractive. It consisted of the following groups of products: 1. Low, medium and high-voltage power networks 2. Power and lighting wiring systems 3. Wiring systems for endangered zones 6

4. Low, medium and high-voltage substions 5. Commissioning and start-up 6. Designing of equipment specified under items 1-4 7. Technical maintenance services 8. General contracting of investment works 9. Conceptual work and consulting To complement the above offer, since 1 January 2006 ELEKTROBUDOWA SA has had a new Automion Division creed through the development of own resources and competencies but based on the external recruitment of specialists established in this business and possessing all required technical competencies. The Division is focused on the supply of turnkey electrical and automion projects. In the first half of 2006 the organisional structure of the Division was developed, the scope of marketing units was defined and projects specified. First results of the operions of the Division are expected the beginning of 2007. The Customer is offered complex performance of the project, starting with designing and prefabricion of equipment through delivery, assembly, start-up together with operion during the trial period and ending with guarantee and post-guarantee service. The potential possessed by the Group allows it to implement the majority of complex projects on its own. Depending on the sector of economy the intensity of activity of competitive companies varies. In some the Company is an unquestioned leader and in others it is just beginning to build its position. Development of the Group to a large extent depends on the customers of particular entities belonging to the Group, th represent the following branches: power, building, petrochemical, mining, metallurgic industries, commerce and the army. Each of the foregoing branches has specific requirements in the area of services and products involved with the generion, transmission and use of electric energy and differs in its method of functioning as well as in its economic situion. Future income of the Group will undoubtedly be affected by the following factors: - market situion in the power sector, chemicals, metallurgy and building industry; - prices for electrical merials, electric power equipment and products of metallurgy; - privision of industrial sectors, especially power sector; - implemention of marketing stregy of the Group and reduction of costs of the Group s operions. 3. Market situion - sales and supplies. 3.1 Directions of sales. The activity of ELEKTROBUDOWA Group mainly concentres on the Polish market. Export in H1 2006 amounted to 1,386 thousand PLN, which made up 0.9 % revenues from the sale of products and was mainly limited to the export of electrotechnical products manufactured by the Group. Sales to the power sector and other industries by the subsidiary entity KRUELTA in Russia amounted to 18 950 thousand PLN and made up 12.1 % of the Group s revenues. 7

Presented below is an itemizion of income from sales of products of the Elektrobudowa Group according to branches of economy to which the sales were made in H1 2006 and H1 2005. Areas of activity H1 2006 H1 2005 Value Value (PLN 000) % (PLN 000) % Power generion industry 53 668 34.3 29 688 24.2 Power distribution industry 4 925 3.2 6 787 5.6 Chemical industry 28 487 18.2 10 516 8.6 Housing and utility building 16 851 10.8 24 223 19.8 Shopping facilities 14 403 9.2 11 427 9.3 Building merials industry 10 388 6.6 13 628 11.1 Mining industry 7 652 4.9 1 503 1.2 Food industry 1 742 1.1 155 0.1 Metallurgic industry 1 386 0.9 2 507 2.0 Environmental protection facilities 1 054 0.7 4 954 4.1 Paper industry 663 0.4 3 933 3.2 Transport 544 0.3 607 0.5 Export of products 83 0.1 1 129 0.9 Other areas 14 463 9.3 11 428 9.4 Total 156 309 100.00 122 485 100.00 Traditionally, the power genering sector was the biggest source of income in H1 2006 (34.3% in the structure of sales by industries) where ELEKTROBUDOWA Group was present with its products and full range of electric installion works on all newly erected, developed and modernized power industry facilities in Poland and Russia. The Group also supplies installions connected with environmental protection. Value of executed orders for this industry by 80.8 % exceeded the value of orders performed in the same period of the previous year. A significant share, amounting to 18.2 %, in the total income of the Group for H1 2006 had supplies and works performed in new or modernized retail facilities, i.e. supermarkets and chains of stores KAUFLAND, Hypernova, Biedronka and LIDL. Specific type of works performed in such facilities is a new area of activity for the Group. The value of contracts executed in this area doubled in comparison with the same period of the previous year. The chemical industry was a market third in size for the Group activity in H1 2006. The volume of sales to the chemical industry, which in H1 2006 made up 10.8% of the total sales, mainly concerned PKN ORLEN S.A. in Płock. In the first half of 2006, as in the previous year, the Group significantly marked its presence in housing industry and broadly understood public utility sector. The share of this sector in revenues earned in the period between 1 January and 30 June 2006 amounted 9.2%. Yet another area in which the Group conducts its activity is the mining industry. The share of income from this branch of industry in the total revenue amounted to 6.6% in H1 2006. This area included lignite mines, coal mines and copper mines. The remaining market segments allowed the Group to considerably supplement its sales beyond the forenamed basic branches of the economy. 3.2 Dependence on one or more customers None of the contracts performed in H1 2006 exceeded 10% of revenue from the Group sales achieved during th period. In H1 2006 the Group noted its highest income from the construction of the retail facility Kaufland in Gdynia. The value of performed works on this contract amounted to 13.8 million PLN. 8

3.3 Sources of supply During the period 1st January 30 June 2006, the sources of supply did not change much as compared with previous years. ELEKTROBUDOWA Group does not depend on one or several suppliers, whose share in relion to sales would exceed 10%. However, having in mind the necessity of cutting costs we are looking for new suppliers of merials who can offer more favourable conditions of purchase. 4. Major contracts 4.1. Construction contracts and supplies of equipment In the first half of 2006 the Group noted a significant growth of value of orders received, particularly by the parent. The value of signed orders within this period totaled PLN 241.3 million. For the first time during the lest several years the majority of orders were won from the power generion sector, including contracts for: - supply of the electrical part of 460 MW unit, the Łagisza Power Stion PLN 44.9 m. - modernision of generor busduct connection in the Pątnów I Power Stion PLN 26.5 m - EPC contract for the supply and installion of switchgears and transformers PLN 10.5 m in the Pątnów II Power Stion - modernision of general auxiliaries in the Jaworzno III Power Stion PLN 10.0 m - modernision of substions in the Żerań He & Power Plant PLN 8.3 m - modernision of substions in the Siekierki He & Power Plant PLN 5.6 m 4.2 Insurance contracts a/ TRYG Polska Towarzystwo Ubezpieczeniowe S.A : third-party and Casco insurance contract for means of transport; b/ Towarzystwo Ubezpieczeń i Reasekuracji "WARTA" SA w Warszawie contracts for: all-risk insurance of building and assembly production, third-party insurance of members of the Management Board, Proxies and Supervisory Board members of the Company. d/ Towarzystwo Ubezpieczeniowe Allianz Polska S.A. w Warszawie Insurance of property against fire and casualties; Insurance of cash against theft and burglary; Insurance of cargo during railway transport; e/ Towarzystwo Ubezpieczeniowe Gerling S.A. Third-party business insurance 9

5. Investments in 2006 Investments implemented in H1 2006 Total capital expenditure of the Group in the six months ended 30 June 2006 amounts to PLN 3,603 thousand. The basic part of expenditures was earmarked for further modernizion and current reproduction of property, plant and equipment of the Group. Purchases of equipment for improving the production process and assembly technology were made, as well as the replacement of computer hardware and purchase of modern software was continued; the subsidiary Kruleta commenced the construction of a new production bay. The purchased equipment included line telpher, sami-automic welding machine, elektro-hydraulic bender, cable terminion equipment and measuring instruments. In order to improve transport eleven este cars and ten motors cars were purchased and to facilite office work organision three modern digital copying machines were bought. The H1 2005 investments were financed from own funds, including, to a lesser degree, from receipts obtained from the sale of tangible assets. Investment plan for the second half of 2006 Investment requirements of the second half of 2006 result from the necessity of continuing to modernize the Group s tangible assets in order to achieve higher efficiency of the Group s operions. The Group is planning, among other things, to modernize the roofs of production halls and warehouses in Konin and Mikolow and to continue constructing the production hall by Kruelta. We will still continue to modernize the machine stock. The plans include the purchase of NOVOPRESS for busducts machining, indoor overhead crane with the roadbed, 4T LPG engine powered fork lift truck and a semi-automic welding machine. A vast portion of expenditure planned for 2006 will be assigned for organision of modern work stions, including the purchase of computer hardware and software. Capital expenditure of the Group for investments in the second half of 2006 will total PLN 5,300 thousand. The investments will be financed from own funds of the Group entities. 6. Reled-party transactions In the first half of 2006 both ELEKTROBUDOWA SA and its subsidiaries entered only into typical, routine transactions made on an arm s length basis between the reled parties and resulting from day-to-day business operions of the entities in the Group Transactions by Elektrobudowa SA with reled parties in the reporting period were carried out for the amount of PLN 8,475 thousand, of which: - sales of products to Kruelta 8 433 thousand PLN - sales of products to Konip 42 thousand PLN Sales realized by the subsidiaries to Elektrobudowa SA: - KONIP 366 thousand PLN Mutual settlements as 30 June 2006 amounted to PLN 65 thousand, which in whole covered Elektrobudowa s liability to Konip. 10

7. Informion on negotied credits, credit agreements, securities and guarantees 7.1. Credit agreements as 30 June 2006 Bank Type of loan De of payment Lending limit 1. BRE BANK S.A. Warszawa overdraft facility 30.09.2006 PLN 3.0 m 2. ING Bank Śląski overdraft facility 30.05.2007 PLN 8.0 m 3. Bank Handlowy w Warszawie renewable overdraft facility S.A. every 7 days PLN 6.1 m 4. PKO BP S.A. w Warszawie overdraft facility 23.02.2009 PLN 5.0 m 5. PKO BP S.A. w Warszawie working capital facility 23.02.2009 PLN 5.0 m 6. BPH S.A. w Krakowie overdraft facility 30.04.2008 PLN 10.0 m 7. BPH S.A. w Krakowie debt securities issue 22.07.2008 PLN 30.0 m Credit agreements in items 1 to 6 were concluded earlier and extended in 2006 by relevant annexes. In H1 2006 only the parent, Elektrobudowa SA utilised bank loans. Also only Elektrobudowa SA issued debt securities. Liabilities of Elektrobudowa SA due to loans and borrowings totalled PLN 21.4 million as 30 June 2006. The amount covers the utilized loan in the amount of PLN 15.4 million and the issue of debt securities for the amount of PLN 6.0 million. 7.2. Lending agreements In H1 2006 Elektrobudowa SA Group was not extended nor itself extended any loans or guarantees except those detailed in the note to the consolided financial stements of the Group. 7.3. Guarantees In H1 2005 the Group did not receive, nor grant any guarantees. 8. List of shareholders holding least 5% of the total number of votes the General Meeting of Shareholders of ELEKTROBUDOWA SA (the Parent) as on 14 August 2006 Number of shares % equal to number of votes OFE Nionale Nederlanden Polska 11.58 459 828 Powszechny Zakład Ubezpieczeń S.A. 8.72 346 245 OFE PZU Złota Jesień 8.12 322 421 Commercial Union Otwarty Fundusz Emerytalny BPH CU WBK 7.05 280 000 Dom Maklerski Handlowy Zarządzanie Aktywami S.A. ( HanZa ) 5.67 225 347 AIG Pension Fund 5.34 211 963 Credit Suisse Life Pensions now Winterthur OFE 5.04 200 000 11

The Group does not have any knowledge of agreements which could contribute in future to a change in the proportion of shares held by existing shareholders. 9. Basis for preparion These Consolided Financial Stement for H1 2006 were drawn up in conformity with the historical cost principle, except the revaluion of derivive instruments which are shown fair value. Preparion of the financial stements in conformance with IFRS requires the applicion of certain key accounting estimes. The Management has to take a number of subjective decisions concerning the applicion of the accounting standards. Areas which are more complex or require a subjective judgement, and also those areas in which the assumptions and estimes are significant for the financial stements as a whole, are described in additional informion to the financial stements, in Notes 9, 11.2, 15, 21 and 24. 10. Major technical development works conducted in H1 2006. As in the previous year the development works programme in H1 2006 concentred on extending the range of medium and low-voltage switchgears. 1. In the scope of low voltages: works were continued on the Module Energy distribution system Pontis, designed for installions for red voltage up to 1000V and currents from 25A to 6000A. design solutions were developed and then tested by the Electrotechnical Institute which allow to upgrade the current rings of low voltage switchgears type NGWR and RNM manufactured by Elektrobudowa SA up to 5000A. 2. In the scope of medium voltages: tests were performed on electromagnetic compibility, with positive results, of switchgears type D- P, to enable supplying for Canadian SNC LAVALIN, for the modernision of the PAtnow Power Stion. Design solutions were developed then tested by the Electrotechnical Institute which allow to upgrade the current rings of switchgears type D-17P up to 3150A. Procedure was performed to adapt switchgears type D-17P for the Arabian market requirements. The switchgear type PREM-G1d with remote control of the withdrawable part and the earthing switch, designed for applicions in mining industry, was developed. works on PREM GJ design were continued, as per the assumption of the earmarked Project. 11. Stement of compliance with legislion All informion required by the regulion of the Minister of Finance ded 19 October 2005 on current and periodical informion provided by the issuers of securities were included in these consolided financial stements of Elektrobudowa SA Group, except those which do not occur in the Group. The Management Board of Elektrobudowa SA declares th according to their best knowledge the interim consolided financial stements and the comparable da have been prepared in accordance to the accounting principles which are in force and th they reflect in true, fair and clear way the merial and financial situion of the Group and its financial result, and also th the report from the Group s operions presents a true picture of development, achievements and situion of the Group, including the description of basic risks and thres. 12

12. Stement on the choice of the auditing company The Management Board of Elektrobudowa SA declares th PricewerhouseCoopers Sp. z o.o. with registered office in Warsaw, pl. Armii Ludowej 14, 00-638 Warszawa, which reviewed the financial stements of Elektrobudowa SA and the consolided financial stements of Elektrobudowa SA Group for the six months ended 30 June 2006 was chosen for performing the audit in conformity with provisions of the law. The forenamed Company and chartered accountants who carried out the audit of the forenamed stements fulfilled the conditions of expressing an unbiased and independent opinion of the audit, conformable with relevant regulions. 13. Stement on observing the corpore governance rules The Management Board declares th the Company fully observes the corpore governance rules resolved by the Warsaw Stock Exchange Board and Management, contained in the document Best Practices in Public Companies 2005 in a way defined in the Stement accepted and published by the Company. SIGNATURES OF ALL MANAGEMENT BOARD MEMBERS Name and surname Position / Function De Signure Jacek Faltynowicz Jarosław Tomaszewski Ariusz Bober Stanisław Rak Tomasz Jaźwiński President Board Member Board Member Board Member Board Member 13

PricewerhouseCoopers Sp. z o.o. Oddział w Kowicach ul. Sowińskiego 46 40-018 Kowice Polska Telefon +48 (32) 604 0200 Faks +48 (32) 604 0300 http://www.pwc.com/pl TRANSLATORS EXPLANATORY NOTE The following document is a free translion of the registered auditor s report of the below-mentioned Polish Company. In Poland stutory accounts must be prepared and presented in accordance with Polish legislion and in accordance with the accounting principles and practices generally used in Poland. The accompanying transled report has not been reclassified or adjusted in any way to conform to accounting principles generally accepted in countries other than in Poland, but certain terminology current in Anglo-Saxon countries has been adopted to the extent practicable. In the event of any discrepancy in interpreting the terminology, the Polish language version is binding. Independent Registered Auditor s Report on the review of the condensed bi-annual financial stements for the period 1 January 2006 30 June 2006 To the Shareholders and the Supervisory Board of Elektrobudowa S.A. We have reviewed the tached condensed bi-annual financial stements of Elektrobudowa S.A. (hereinafter referred to as the Company), Porcelanowa 12, Kowice, which comprise: (f) the balance sheet as 30 June 2006, showing total assets and total liabilities and equity of PLN 175,086 thousand; (g) the income stement for the period from 1 January to 30 June 2006, showing a net profit of PLN 4,037 thousand; (h) the stement of changes in equity for period from 1 January to 30 June 2006, showing a decrease in equity of PLN 1,948 thousand; (i) the cash flow stement for the period from 1 January to 30 June 2006, showing net inflows of PLN 2,999 thousand; (j) the notes to the financial stements. The Company s Management Board is responsible for preparing the condensed bi-annual financial stements in accordance with Internional Financial Reporting Standards as adopted by the European Union reled to interim financial reporting (IAS 34). Our responsibility was to present a report on these bi-annual financial stements based on our review..

Independent Registered Auditor s Report on the review of the condensed bi-annual financial stements for the period 1 January 2006 30 June 2006 To the Shareholders and the Supervisory Board of Elektrobudowa S.A. (cont d) We have performed our review in accordance with the auditing standards issued by the Nional Council of Registered Auditors, applicable in the Republic of Poland. Under these standards, we are obliged to plan and perform the review to obtain reasonable assurance th the condensed bi-annual financial stements are free of merial irregularities. We have performed our review on the basis of an analysis of the above-mentioned bi-annual financial stements, a review of the books of account and the informion obtained from the Company s Management Board and employees. The scope of work performed was significantly less than the scope of an audit, because our review was not aimed expressing an opinion on the truth and fairness of the condensed biannual financial stements. This report does not constitute an audit opinion on the financial stements within the meaning of the Accounting Act of 29 September 1994 (Journal of Laws of 2002 No. 76, item 694 with subsequent amendments). Our review has not revealed a need to make any significant changes to the tached condensed bi-annual financial stements to achieve compliance with the Internional Accounting Standard 34 Interim Financial Reporting On behalf of PricewerhouseCoopers Sp. z o.o. and the person conducting the review: Tomasz Reinfuss Member of the Management Board Registered Auditor Registered Audit Company No. 90038/7274 No. 144 Kowice, 13 September 2006.

ELEKTROBUDOWA SA The Interim Condensed Financial Stements period from 1 January 2006 to 30 June 2006 ` 1

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 Index to the financial stements BALANCE SHEET... 3 INCOME STATEMENT... 4 STATEMENT OF CHANGES IN EQUITY... 5 CASH FLOW STATEMENT... 7 1. Selected explanory informion... 8 2. Changes in provisions for and write-downs of receivables and income tax... 9 3. Changes in contingencies... 9 4. Changes in presention of financial stements... 10 5. Earnings per share... 13 6. Book value per share... 14 The notes on pages 8 to 14 are an integral part of these condensed financial stements 2

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Balance Sheet as 30 June 2006 * as 31 Dec 2005 * as 30 June 2005 ASSETS Non-current assets 44 544 44 298 43 089 Property, plant and equipment 30 486 29 822 29 384 Intangible assets 2 310 2 101 1 765 Interest in subsidiaries 1 705 856 741 Available-for-sale financial assets 879 879 879 Trade and other receivables 8 675 9 707 9 722 Deferred income tax assets 0 441 105 Long-term prepayments 489 492 493 Current asssets 130 542 123 749 116 670 Inventories 20 082 3 499 13 867 Trade and other receivables 77 244 92 089 86 034 Derivive financial instruments 381 181 0 Short-term prepayments 782 261 425 Amounts due from customers for contract work 21 985 20 650 14 164 Cash and cash equivalents 10 068 7 069 2 180 Total assets 175 086 168 047 159 759 EQUITY AND LIABILITIES Equity 67 363 69 311 61 840 Share capital 24 821 24 821 24 821 Reserve capital 56 495 58 186 58 186 Prior years' profit (loss) (17 990) (22 431) (22 454) Net profit (loss) 4 037 8 735 1 287 Liabilities Non-current liabilities 4 932 3 726 2 442 Deferred income tax liabilities 639 0 0 Employee benefit obligions 1 767 1 837 1 209 Trade and other payables 2 526 1 889 1 233 Current liabilities 102 791 95 010 95 477 Trade and other liabilities 68 869 60 879 56 046 Corpore income tax obligions 31 1 181 0 Loans, borrowings and debt securities 21 377 16 415 30 507 Provisions 575 634 513 Accrued expenses 1 890 3 224 1 027 Amounts due to customers for construction contract work 10 049 12 677 7 384 Total liabilities 107 723 98 736 97 919 Total equity and liabilities 175 086 168 047 159 759 * rested da The notes on pages 8 to 14 are an integral part of these condensed financial stements 3

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Income Stement Six months ended 30 June 2006 2005* Revenues 147 878 125 813 Cost of products, goods and merials sold (140 556) (118 514) Gross profit on sales 7 322 7 299 Selling costs (802) (326) Administrive expenses (3 089) (3 264) Other gains (losses) - net 911 (1 134) Opering profit 4 342 2 575 Finance cost (income) 807 (2) Profit before tax 5 149 2 573 Income tax expense (1 112) (1 286) Profit for the period 4 037 1 287 Earnings per share for profit tributable to the equity holders of the Company in the period (expressed in PLN per share) - basic 1,02 0,32 - diluted 0,98 0,32 * rested da The notes on pages 8 to 14 are an integral part of these condensed financial stements 4

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Stement of Changes in Equity Share capital Reserve capital from share premium Other reserve capital Prior years' profit (loss) Net profit Total equity Balance 1 January 2006 24 821 10 369 47 817 (13 696) 0 69 311 net proft for the period 0 0 0 4 037 4 037 profit distribution 0 0 2 750 (2 750) 0 0 coverage of prior years' loss 0 0 (4 441) 4 441 0 0 dividend payment 0 0 0 (5 957) 0 (5 957) dividend servicing 0 0 0 (28) 0 (28) Balance 30 June 2006 24 821 10 369 46 126 (17 990) 4 037 67 363 Share capital Reserve capital from share premium Other reserve capital Prior years' profit (loss) Net profit Total equity Balance 1 January 2005 24 821 10 369 46 801 (17 438) 0 64 553 net proft for the period 0 0 0 0 8 735 8 735 profit distribution 0 0 1 016 (1 016) 0 0 dividend payment 0 0 0 (3 971) 0 (3 971) dividend servicing 0 0 0 (6) 0 (6) Balance 31 December 2005 24 821 10 369 47 817 (22 431) 8 735 69 311 The notes on pages 8 to 14 are an integral part of these condensed financial stements 5

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Share capital Reserve capital from share premium Other reserve capital Prior years' profit (loss) Net profit Total equity Balance 1 January 2005 24 821 10 369 46 801 (17 438) 0 64 553 net proft for the period 0 0 0 0 1 287 1 287 profit distribution 0 0 1 016 (1 016) 0 0 dividend payment 0 0 0 (3 971) 0 (3 971) dividend servicing 0 0 0 (29) 0 (29) Balance 30 June 2005 24 821 10 369 47 817 (22 454) 1 287 61 840 The notes on pages 8 to 14 are an integral part of these condensed financial stements 6

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Cash Flow Stement Six months ended 30 June 2006 2005* Cash flows from opering activities Net profit 4 037 1 287 Depreciion and amortision 2 166 2 540 Gains (losses) from currency translion differences 0 (95) Interest and share in profit (dividends) 1 256 997 Gains (loss) from investing activities (1 773) (39) Change in deferred income tax assets 1 080 1 286 Change in inventories (16 583) (2 034) Change in trade and other receivables 15 721 11 502 Change in liabilities, except loans and borrowings 3 179 (13 627) Tax paid (1 181) (1 366) Change in current accruals (1 855) (173) Change in non-current accruals 3 3 Change in settlements of construction contracts (3 963) (9 049) Other adjustments (840) (485) Net cash (used in) / genered from opering activities 1 247 (9 253) Cash flows from investing activities Proceeds from sale of property, plant & equipment and intangible assets 334 588 Purchase of property, plant & equipment and intangible assets (3 118) (3 004) Net cash used in investing activities (2 784) (2 416) Cash flows from financial activities Loans and borrowings 6 948 9 025 Redemption of debt securities (1 986) 0 Payment of financial lease commitments (28) (21) Interest (398) (997) Net cash genered from financial activities 4 536 8 007 Net decrease /increase in cash 2 999 (3 662) Cash beginning of period 7 069 5 842 Cash end of period 10 068 2 180 * rested da The notes on pages 8 to 14 are an integral part of these condensed financial stements 7

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) 1. Selected explanory informion Since 1 January 2005 Elektrobudowa SA has implemented and applied the accounting standards based on the Internional Financial Reporting Standards. The present condensed financial stements have been prepared in compliance with IAS 34 (Interim Financial Reporting). The accounting principles applied in preparing these financial stements has not been changed in comparison with the Company s lest annual financial stements. The requirements for public companies have also been accounted for in these condensed financial stements for the 1st half of 2006. The Company has also prepared the consolided financial stements of the Capital Group, which covers Elektrobudowa SA and its subsidiaries, complying with the IFRS. In the consolided stements the subsidiaries all entities over which the Group has the power to govern the financial and opering policies, generally accompanying a shareholding of more than one half of the voting rights, have been consolided by a full method. The condensed separe financials stements of Elektrobudowa SA accompany the condensed consolided financial stements for H1 2006. In the additional informion to the condensed consolided financial stements of the Elektrobudowa SA Group all essential informion required by IAS 34 p16 was included, so the separe financial stements of Elektrobudowa S.A. should be read in conjunction with the consolided financial stements to have a full view of the financial situion of the Group, its performance results and changes in the financial situion. Changes in debt securities 30 June 2006 31 Dec 2005 30 June 2005 At beginning of period 7 964 0 0 Issues 29 873 12 941 0 Issue payments -31 859-4 977 0 At end of period 5 978 7 964 0 The notes on pages 8 to 14 are an integral part of these condensed financial stements 8

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) 2. Changes in provisions for and write-downs of receivables and income tax as 30 June 2006 as 31 Dec 2005 as 30 June 2005 Provisions for impairment of receivables of which: - in bankruptcy proceedings - in arrangement - receivables vindiced in court - other overdue debtors 19 682 20 491 26 341 9 956 10 608 15 343 2 758 2 869 3 379 598 488 430 6 370 6 526 7 189 as 30 June 2006 as 31 Dec 2005 as 30 June 2005 Deferred income tax assets deferred income tax assets to be - realised after 12 months deferred income tax assets to be - realised within 12 months Deferred income tax liabilities deferred income tax liabilities to be - realised after 12 months deferred income tax liabilities to be - realised within 12 months (4 453) (5 227) (3 658) (799) (819) (557) (3 654) (4 408) (3 101) 5 092 4 786 3 553 605 641 652 4 487 4 145 2 901 Deferred corpore income tax 639 (441) (105) 3. Changes in contingencies as 30 June 2006 as 31 Dec 2005 as 30 June 2005 Contingent liabilities 54 146 44 933 44 147 of which: guarantees 45 951 37 751 37 159 bills of exchange 8 195 7 182 6 988 The notes on pages 8 to 14 are an integral part of these condensed financial stements 9

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) 4. Changes in presention of financial stements Presented below are the amendments to the classificion of da, as compared with the stements for the 1st half of 2005. The above change is the result of changing the form of the stements. It was introduced in order to provide better understanding of the financial stements, and with illustrive financial stements included in IAS 1 in mind. Adjustment of the Elektrobudowa SA balance sheet items as 30 June 2005 Presention in H1 2005 report Present presention Difference Explanion of differences Assets Non-current assets 46 378 43 089 (3 289) Property, plant and equipment 29 877 29 384 (493) transfer of the right to perpetual usufruct of land Intangible assets 1 501 1 765 264 transfer of costs of unfinished development works Available-for-sale financial assets 1 620 1 620 0 Trade and other receivables 9 722 9 722 0 Deferred income tax assets 3 658 105 (3 553) correction of deferred tax presention (shown to balance) Long term prepayments and accrued income 0 493 493 transfer of the right to perpetual usufruct of land Current asssets 116 934 116 670 (264) Inventories 13 867 13 867 0 Trade and other receivables 86 034 86 034 0 Current prepayments and accrued 689 425 (264) transfer of costs of unfinished development works income Amounts due from customers for 14 164 14 164 0 construction contract works Cash and cash equivalents 2 180 2 180 0 Total assets 163 312 159 759 (3 553) EQUITY 61 840 61 840 0 Share capital 24 821 24 821 0 Reserve capital 58 186 58 186 0 Prior years' profit (loss) (22 454) (22 454) 0 Net profit (loss) 1 287 1 287 0 LIABILITIES 101 472 97 919 (3 553) 1. Non-current liabilities 5 995 2 442 (3 553) Deferred income tax liabilities 3 553 0 (3 553) correction of deferred tax presention (shown to balance) Retirement benefit obligions 1 209 1 209 0 Trade and other payables 1 233 1 233 0 2. Current liabilities 95 477 95 477 0 Trade and other payables 56 046 56 046 0 Loans and borrowings 30 507 30 507 0 Provisions 513 513 0 Accrued expenses 1 027 1 027 0 Amounts due from construction contracts customers 7 384 7 384 0 Total equity and liabilities 163 312 159 759 (3 553) The notes on pages 8 to 14 are an integral part of these condensed financial stements 10

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) Adjustment of the income stement Elektrobudowa SA for H1 2005 Presention in H1 2005 report Present presention Difference Explanion of differences Revenues 125 217 125 813 596 positive currency translion differences realised Cost of goods sold (117 898) (118 514) (616) negive currency translion differences realised Gross profit 7 319 7 299 (20) Selling costs (326) (326) 0 Administrive expenses Other net profit (loss) (3 264) (1 948) (3 264) (1 134) 0 814 513 interests 948 positive translion differences (282) negive translion differences (63) interests on liabilities, calculed and paid (4) interests cancelled (153) written off interests on overdue debts 219 reversal of interests write-offs 6 financial income - discount (370) commission for loans, guarantees, revenue duty on bills of exchange Opering profit (loss) 1 781 2 575 794 Financial costs, net 792 (2) (794) (513) interests (6) financial income - discount (219) reversal of interests write-offs (1.544) positive translion differences 898 negive translion differences 63 interests on liabilities, calculed and paid 153 written off interests on overdue debts 4 interests cancelled 370 commission for loans, guarantees, revenue duty on bills of exchange Profit before taxes 2 573 2 573 0 Income tax (1 286) (1 286) 0 Net profit for the year 1 287 1 287 0 The notes on pages 8 to 14 are an integral part of these condensed financial stements 11

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) Adjustment of the cash flow stement of Elektrobudowa SA for H1 2005 Presention in H1 2005 report Present presention Difference Explanion of differences A Cash flows from opering activities (9 253) (9 253) 0 I. Net profit 1 287 1 287 0 II Adjustments (10 540) (10 540) 0 1. Amortision 2 543 2 540 (3) amortision of the right of perpetual usufruct of land 2. Profit (loss) from currency exchange differences (95) (95) 0 3. Interest and share in profits (dividends) 997 997 0 4. 5. Profit (loss) from investing activities Change in provisions (39) 1 915 (39) 0 0 (1 915) (1.458) provision for deferred income tax 20 change due to long-term provisions for pension benefits and similar 23 change in short-term provisions for pension benefits and similar (500) change in short-term provision for corrective works 6. Change due to deferred income tax 0 1 286 1 286 (172) deferred income tax assets 1.458 provision for deferred income tax 7. Change in inventories (2 034) (2 034) 0 8. 9. Change in trade and other receivables Change in liabilities, except loans and borrowings 11 502 (15 450) 11 502 (13 627) 0 1 823 1.366 correction of presention of paid tax (20) change due to long-term provisions for pension benefits and similar (23) change in short-term provisions for pension benefits and similar 500 change in short-term provision for corrective works 10. Income tax, paid 0 (1 366) (1 366) correction of presention of paid tax 11. Change in prepayments and accruals and in (9 640) 0 9 640 9.049 carried settlements of construction contracts settlements of construction contracts 251 short-term accruals due to write off to company social contr.fund 12. Change in settlements current accruals 0 (173) 246 short-term accruals due to development costs (29) short-term deferred costs 110 short term prepayments for supplies 172 change in income tax assets 154 change in accruals due to holiday pay (88) change in accruals due to annual bonuses (267) change in accruals due to services 42 change in accruals due to auditing of financial stements (173) (251) short-term accruals due to write off to company social contrib.fund 29 short-term deferred costs (110) short-term prepayments for supplies (154) change in accruals due to holiday pay 88 change in accruals due to annual bonuses 267 change in accruals due to services (42) change in accruals due to auditing of financial stements 13. Change in settlements of long-term accruals 0 3 3 amortision of the right of perpetual usufruct of land 14. Change in settlements of construction contracts 0 (9 049) (9 049) carried settlements of construction contracts 15. Other adjustments (239) (485) (246) carried costs of unfinished development works B Cash flows from investing activities (2 416) (2 416) 0 I. Cash inflows 588 588 0 II. Cash outflows (3 004) (3 004) 0 C Cash flows from financing activities 8 007 8 007 0 I. Cash inflows 9 025 9 025 0 II. Cash outflows (1 018) (1 018) 0 1. Dividend 2. Other expenses 3. Loan repayment 0 4. Payments due to lease contracts (21) (21) 0 5. Interests and share in profits (dividends) (997) (997) 0 D Net cash flows (3 662) (3 662) 0 E Cash beginning of period 5 842 5 842 0 F Cash and overdrafts end of period 2 180 2 180 0 The notes on pages 8 to 14 are an integral part of these condensed financial stements 12

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) 5. Earnings per share Calculion of diluted earnings per ordinary share in H1 2006 was based on: average market price of one share 47,03 option exercise price 21,10 Earnings Shares Earnings per share net profit for the period (in PLN) 4 036 902 weighted average number of shares in issue 3 971 000 earnings per share 1,02 weighted average number of shares (share option) 249 096 weighted average number of shares th would habe been issued average market price (111 757) diluted earnings per ordinary share 4 036 902 4 108 339 0,98 Calculion of diluted earnings per ordinary share in H1 2005 was based on: average market price of one share 25,54 option exercise price 21,10 Earnings Shares Earnings per share net profit for the period (in PLN) 1 286 919 weighted average number of shares in issue 3 971 000 earnings per share 0,32 weighted average number of shares (share option) 249 096 weighted average number of shares th would habe been issued average market price (205 792) diluted earnings per ordinary share 1 286 919 4 014 304 0,32 The notes on pages 8 to 14 are an integral part of these condensed financial stements 13

ELEKTROBUDOWA SA The interim condensed financial stements for period from 1 January 2006 to 30 June 2006 (all amounts in thousands of Polish zloty unless otherwise sted) Notes to the financial stements (continued) 6. Book value per share as 30 June 2006 as 31 Dec 2005 as 30 June 2005 equity 67 363 69 311 61 840 number of shares 3 971 000 3 971 000 3 971 000 book value per share 16,96 17,45 15,57 7. The Management Board Stement The Management Board of Elektrobudowa SA announces th they approve the present financial stements for the six months ended 30 June 2006. The notes on pages 8 to 14 are an integral part of these condensed financial stements 14

SIGNATURES OF ALL MANAGEMENT BOARD MEMBERS Name and surname Position / Function De Signure Jacek Faltynowicz Jarosław Tomaszewski Ariusz Bober Stanisław Rak Tomasz Jaźwiński President Board Member Board Member Board Member Board Member SIGNATURE OF A PERSON ENTRUSTED WITH MAINTAINING THE ACCOUNTING BOOKS Name and surname Position / Function De Signure Danuta Tomaszewska Chief Accountant 15