DIRECŢIA CONTROL, ANALIZĂ, STRATEGIE Str. Cpt. Av. Alex. Şerbănescu nr. 50 Bucureşti, 014294 România Tel. +4021 - 303.63.26 Fax: +4021 - 233.32.83 www.avas.gov.ro

Company Description Technological process manufacturing enterprise integrated FORTUS is a manufacturer of heavy technological equipment with integrated mechanical-metallurgical structure has the following manufacturing sectors: - the primary sector includes electric steelworks, modeling, steel and iron foundries and forging stations; -sector fully equipped for welding mechanical welded steel assemblies execution; -machining sector including three sections equipped with machine tools and equipment that can provide processing, assembling and testing more complex equipments; -the heat treatment and electroplating sector.

Company Juridical Situation The juridical situation of company Commercial and Administrative Litigation Division of Iasi Court by the No.110/S/ 11.03.2008 Commercial Sentence has ordered the opening of insolvency proceedings against the debtor SC "FORTUS" SA Iasi. The Judicial authority involved in insolvency proceedings is Mures Commercial Bankruptcy Court. Currently, the company is in the observation period. Management of the company - Board of Directors By the conclusion no.299/25.11.2008, the Iasi Court Commercial and Administrative Litigation Division – Syndic Judge confirms S.C. FORTUS S.A. Iasi administration board duties termination, according art. 47, item 1 from the Law no. 85/2006, regarding the insolvency procedure.

S.C. METALEXPORTIMPORT S.A. Bucureşti Capital Structure Social capital and ownership structure Shareholder Number of shares Social capital - lei - Share in - % - A.V.A.S. Bucureşti 22.808.542 57.021.355 60,0297 S.C. METALEXPORTIMPORT S.A. Bucureşti 9.966.783 24.916.958 26,2315 S.I.F. MOLDOVA 5.153.925 12.884.813 13,5646 Individuals 63.732 159.330 0,1677 Legal persons 2.467 6.167 0,0065 Total 37.995.449 94.988.623 100,0000 Nominal value of shares is 2,50 lei.

Participation of other companies in the capital of S. C. FORTUS S. A Participation of other companies in the capital of S.C. FORTUS S.A. Iaşi Nr. crt. Company name Accounting value % Value - lei 1. SC METALEXPORTIMPORT SA Bucureşti 1553980 26,231518 24.916.958 2. S.C. TGH INVESTMENT S.A. Iaşi 8357204 0,006942 6.167 Unique code of registration

Share in industry branch SC FORTUS SA IASI, is currently the last representative unit integrated automotive industry in Romania which has manufacturing capacity in operation to carry equipment, subassemblies and spare parts for steel, metallurgy, Shipbuilding, cement, chemistry and petrochemistry, environment, food, irrigation , mining, energy and construction machinery.

Personnel structure and internal organization of company Organizational structure include a number of 720 employees, which are: - direct staff productive: 371 - indirectly productive staff: 349, which are: - workers: 166 - administrative: 183

Current physical condition of major equipment and technological equipment Equipments & Buildings Existing -buc- Current technical condition Functional Require revisions & repairs 1. Electric ovens for elaboration and maintain 9 3 6 2. Heating and treatment furnaces 64 27 37 3. Forging and stamping hammer 4. Instalaţii de debitat table şi profile 22 17 5 5. Welding plant 91 72 19 6. Pressing plant 4 2 7. Parallel lathes with D<1250 mm 49 12 8. Parallel lathes with D>1250 mm 15 13 9. Vertical lathes with D<5000 10. Vertical lathes with D>5000 11. Reaming and milling machines with D>150 mm 11 12. Reaming and milling machines with <5000 16 8 13. Other machines tools 180 114 66 14. Roller bridge 128 58 70 15. Oxygen factory - 16. Termal power station 1 17. Compressor station

Analysis of asset development Nr. Crt. Asset items Asset on: 31.12.2010 31.12.2011 1. FIXED ASSETS 293.441.237 Lei 287.135.037 Lei 2. CURRENT ASSETS 13.792.629 Lei 14.497.203 Lei 3. REGULARIZATION ACOUNT 69.361 Lei 25.649 Lei TOTAL ASSET 307.303.227 Lei 301.657.889 Lei

Estimated market value of assets:(May 2012) Grand Total: I + II + III = 189.752.195 Euro -> 847.034.824 Lei I. Excess assets Buildings Area (mp) Floorspace Estimated market value. Buildings Estimated market value Field Euro Lei 138.198,20 556.296,02 20.548.917 91.728.309 38.940.721 173.827.486 II. Functional Assets Buildings Area (mp) Floorspace Estimated market value. Estimated market value Field Euro Lei 295.380 978.952 44.376.252 198.091.149 58.742.072 262.218.734 III. Total fixed assets = 27.144.234 Euro -> 121.169.146 Lei

Debt situation registered in lenders group Nr. Crt. Type of Debt Number of registered debts Value of debts included in the final table -lei 1 Secured debts 5 197.309.071,92 2 Delayed salary payments 6 201.178,67 3 Budgetary debts 19.684,80 4 Senior unsecured debts 10.945.926,32 Unsecured debts 66 8.155.894,14 Other unsecured debts 112.333,64 Total Debts 126 216.744.089,49

Debt situation on 30.04.2012 Total: 363.084.266,13 Lei of which: 216.744.089,49 Lei – debts registered at the list of creditors 2.885.417,37 Lei – obligations older than 12.03.2008 not listed in the list of creditors 143.454.759, 27 Lei – accumulated debts during the observation period Of the 216.744.089,49 Lei, debts to: ANAF: 153.899.768,00 Lei representing 71% AVAS: 18.630.041,16 Lei representing 8,59 % Total ANAF + AVAS = 172.529.809,16 Lei – 79,59% According Government Decision 367/2012

Income and expenses structure in the first 3 years after the reorganization plan started Nr. Crt. Indicator Total 3 years (lei) Of which: Year 1 Year 2 Year 3 1. Operating incomes 266.848.640 60.026.583 98.758.869 108.063.189 2. Operating costs 272.438.821 71.529.147 97.016.991 103.892.683 3. Operating result -5.590.181 -11.502.564 1.741.878 4.170.506

Financing program for efficient production activity on short term ( 9 months) Costs: The analysis is done at a rate of 4,55 lei / euro. Repair and rehabilitation program of production capacity for functional flow to carry on short term production and preparations for winter: 440.000 Euro (once paid) -> 2.002.000 RON Working capital required for the purchase of raw materials and utilities with a rate of £ 39,301,340 for a period of 9 months: Phased payment of outstanding payments for a period of 9 months: 2.400.000 Euro (10.920.000 RON) phased on 9 months -> 266.666 Euro -> 1.213.333 RON TOTAL: 2.002.000 RON + 39.301.340 RON + 10.920.000 RON = 52.223.340 RON

Proposed funding sources The analysis is done at a rate of 4,55 lei / euro. Financial resource needed for working capital will generate a production of approximately 34.000.000 RON for a period of 9 months in the first instance. Use of company’s scrap iron for electric steelworks production flow, quantity available, approximately 800 tonnes: 800 tonnes * 220 Euro -> 176.000 Euro -> 800.800 RON We offer for recovery 30 ha * 15 Euro / mp 4.500.000 Euro -> (20.475.000 RON) TOTAL: 34.000.000 RON + 800.800 RON + 20.475.000 RON = 55.275.800 RON

Conclusions Gross profit on 9 months: Income (including land recovery) – Expenses -> 55.275.800 RON – 52.223.340 RON = 3.052.460 RON

Elements which planned level indicators 1.Average exchange lei/Euro   4,5 2.Selling prices   Steel castings 3,5 Eur/Kg Forgings 2,5 Eur/Kg Welded constructions 1,5 Eur/Kg 3. Share selection Year 1 – Trim I și II 60% 30% 10% Trim. III 55% 35% Trim. IV 50% 40% 4. Conversion factors   -ingots cast / molded finished parts 1.4000 - Forged ingots / piece finite forged -casting liquid steel / cast ingots 1,85*1,020 1.8870 - Ligou liqued steel / forged piece 1,80*1,064 1.9152 5. Expenses share -material costs 38% -energy costs Year – Quarter I și II 27% Year – Quarter III 25% Year – Quarter IV 24%

Planned merchandise production U.M. Total Year 1   Total Quarter 1 Of Which: Total Quarter 2 Of which: Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Lei 55,000,000 7,500,000 2,000,000 2,500,000 3,000,000 11,500,000 3,500,000 4,0000,000 4,000,000 Euro 12,222,222 1,666,667 444,444 555,5556 666,667 2,555,556 777,778 888,889 Total Quarter 3 Of which:   Total Quarter 4 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 15,000,000 4,500,000 5,000,000 5,500,000 21,000,000 6,000,000 7,000,000 8,000,000 3,333,333 1,000,000 1,111,111 1,222,222 4,666,667 1,333,333 1,555,556 1,777,778

Planned merchandise production by type Nr. crt. Type U.M. Total year I Total quarter.I Of which Total Quarter II Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 1 Steel castings LEI 30,150,000 4,500,000 1,200,000 1,500,000 1,800,000 6,900,000 2,100,000 2,400,000 EUR 6,700,000 1,000,000 266,667 333,333 400,000 1,533,333 466,667 533,333 2 Forgings 19,350,000 2,250,000 600,000 750,000 900,000 3,450,000 1,050,000 4,300,000 500,000 133,333 166,667 200,000 766,667 233,333 3 Welded constructions 5,500,000 250,000 300,000 1,150,000 350,000 1,222,222 44,444 55,556 66,667 255,556 77,778 88,889 TOTAL MERCHANDISE PRODUCTION 55,000,000 7,500,000 2,000,000 2,500,000 3,000,000 11,500,000 3,500,000 4,000,000 12,222,222 1,666,667 444,444 555,556 666,667 2,555,556 777,778 888,889 lei Total Quarter III Of which Total Quarter IV Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 8,250,000 2,475,000 2,750,000 3,025,000 10,500,000 3,000,000 3,500,000 4,000,000 1,833,333 550,000 611,111 672,222 2,333,333 666,667 777,778 888,889 5,250,000 1,575,000 1,750,000 1,925,000 8,400,000 2,400,000 2,800,000 3,200,000 1,166,667 350,000 388,889 427,778 1,866,667 533,333 622,222 711,111 1,500,000 450,000 500,000 2,100,000 600,000 700,000 800,000 333,333 100,000 111,111 122,222 466,667 133,333 155,556 177,778 15,000,000 4,500,000 5,000,000 5,500,000 21,000,000 6,000,000 7,000,000 8,000,000 3,333,333 1,000,000 1,111,111 1,222,222 4,666,667 1,333,333 1,555,556 1,777,778