Reports

The Management Board of HELIO S.A. hereby informs that it received on 23 May 2007 the agreement signed by the other party dated on 2 March 2007 and concluded with Jeronimo Martins Dystrybucja S.A. (JMD) with its registered office in Kostrzyń. Specification of the terms of trade cooperation in the scope of sales of products manufactured by HELIO S.A. to be sold exclusively in the outlets of the company Biedronka constitutes the subject of the agreement.

The agreement has been concluded for an unlimited period and the terms of cooperation, including penalties, do not diverge from the terms commonly applied for agreement of this type. The amount of contractual penalties assumed in the agreement may exceed the equivalent of EUR 200,000 expressed in PLN. The reservation of contractual penalties refers to failing to perform or improper performance of the agreement by HELIO S.A. Payment of contractual penalties shall not exclude JMD’s right to recovery of compensation claims exceeding the amount of the contractual penalty.

According to the Issuer’s estimates, the value of the subject of the agreement shall fulfill the requirements for recognizing this agreement as significant. The value of the subject of the agreement amounting to at least 10 % of the value of revenues from the Company’s sales for the period of the last four quarters of the business year shall be the fundamental requirement for recognizing this agreement as significant.