POL-MOT Warfama S.A., one of Polish leaders in production and distribution of agricultural equipment concluded a preliminary agreement (term sheet) with a potential foreign strategic investor. This investor will enable the Company to raise significant financial means, making it possible to accelerate its growth, and in particular, to carry out planned investments in a shorter time. Consequently, POL-MOT Warfama S.A. has decided to postpone its Public Offering until the 4th quarter of this year.

The first outcome of signing the letter of intent with the investor will be the beginning of a due diligence study concerning the Company. This process should be completed within six weeks. On the basis of the study results, a formal decision to carry out the transaction will be taken, the exact value of the investor’s commitment will be specified and the recapitalization schedule will be prepared. This will also result in the modification of the development strategy of POL-MOT Warfama S.A.

“The possibility to cooperate with a strategic investor means a great chance for our Company to add dynamics to our activity. Financial support declared by this investor opens new perspectives for the Company, and this will certainly accelerate acquisitions that we are planning. However, since negotiations are pending, we cannot reveal the name of the potential investor. I can only say that it is a large foreign financial entity,” said Grzegorz Bartosik, the President of the Management Board of POL-MOT Warfama S.A.

Entering into a preliminary agreement with the potential investor has resulted in postponing the POL-MOT Warfama S.A. Public Offering. According to the latest plans, it should take place this year, at the turn of November and December. “The decision was taken together with our main shareholder, POL-MOT Holding S.A., since we want the capital market and investors to know the most current plans of our development and to assess the Company in a new, much more attractive light,” added President Grzegorz Bartosik.

Currently, 99.9% shares of POL-MOT Warfama S.A. are held by POL-MOT Holding S.A. In 2006, the Company recorded sales revenue at the level of PLN 76.9 million (an increase of 78% in relation to the previous year), and at the same time, its net profit grew by 157%, reaching PLN 4.97 million. On 13 August 2007, the Prospectus of POL-MOT Warfama S.A. was approved by the Financial Supervision Commission.