Correction of the quarterly report for 4th quarter of 2010

Date of publication: 04.03.2011

PROCHEM S.A. as a result of the mistake in selected financial data and notes on transformation concerning 2009 is filing correction of the consolidated quarterly report of the Capital Group of PROCHEM S.A. for the 4th quarter of 2010 with shortened statement of company PROCHEM S.A.

Presented below corrections aren’t affecting the net profit (loss) and the sum of assets and liabilities, both in the consolidated financial statement of the Capital Group of PROCHEM S.A. as well as the individual report of the PROCHEM S.A.

Selected financial data

In selected financial data concerning Capital Group of PROCHEM S.A. (page No. 3) in the line showing the profit (loss) per one ordinary share in PLN was removed: an amount of 27.89 (as at 31 Dec. 2010) and 26.26 (as at 31 Dec. 2009) and in the Euro – as at 31 Dec. 2010 – 7.04, as at 31 Dec. 2009 – 6.39 – because of the mistake in introducing the data – these amounts concern the book value per one share. A line was added, in which the book value per one share was given.

As a result of revisions described as below concerning transformations of data in the comparative period in selected data the item – gross profit (loss) from the sale was also changed.

Capital Group of PROCHEM	Reporting period ended on 31 Dec. 2009		Reporting period ended on 31 Dec. 2009
	was	should be	was	should be
	In thousand PLN		In thousand EUR
Continuing operations
Gross profit on sales	13 565	14 188	3 125	3 269

	As at 31 Dec. 2010	Reporting period ended on 31 Dec. 2009	Reporting period ended on 31 Dec. 2010	Reporting period ended on 31 Dec. 2009
Book value per one share (in PLN./EURO) – assigned to shareholders of parent entity	27.89 26.26		7.04 6.40

PROCHEM S.A.	Reporting period ended on 31 Dec. 2009		Reporting period ended on 31 Dec. 2009
	was	should be	was	should be
	In thousand PLN		In thousand EUR
Continuing operations
Gross profit on sales	1 326	1 949	305	449

	As Dec. 2010	As at 31 Dec. 2009	As at 31 Dec. 2010	As at 31 Dec. 2009

Book value per one share (in PLN/EURO)	16.04	15.75	4.05	3.83

Changes in individual and consolidated statement of comprehensive income pertain to the comparative period – the year 2009. Converting data in a year 2009 concerning dissolving the reserve to costs of the license was incorrectly introduced. Dissolving the reserve was included in the other operating income, but production cost of sold services should be reduced. Correction amounts to PLN 623 thousand. Items of financial statements which correction is affecting were presented below.

Consolidated Statement of Comprehensive Income	4th quarter of 2009 from 1 Oct. 2009 to 31 Dec. 2009 (transformed) was	4th quarter of 2009 from 1 Oct. 2009 to 31 Dec. 2009 (transformed) should be	Period ended on 31 Dec. 2009 (transformed) was	Period ended on 31 Dec. 2009 (transformed) should be
Cost of services, goods and materials sold, including	27 204	26 581	157 023	156 400
Production cost of products sold	26 175	25 552	150 430	149 807
Gross profit on sales	2 645	3 268	13 565	14 188
Other revenues	6 627	6 004	11 177	10 554

Entering correction into the statement also caused the change in the share in the net profit (loss) and comprehensive income of shareholders of parent entity and minority shareholders.

Consolidated Statement of Comprehensive Income	4th quarter of 2009 from 1 Oct. 2009 to 31 Dec. 2009 (transformed) was	4th quarter of 2009 from 1 Oct. 2009 to 31 Dec. 2009 (transformed) should be	Period ended on 31 Dec. 2009 (transformed) was	Period ended on 31 Dec. 2009 (transformed) should be
Total Comprehensive Income	82	82	0	980
Net comprehensive income assigned to :
Shareholders of parent entity	-2 283	-1 846	-2 283	-1 303
Minority shareholders	2 283	1 928	2 283	2 283
Total	0	82	0	980
Comprehensive income per 1 ordinary share (in PLN per 1 share) – assigned to parent entity equity from continuing operations	0,02	-0,47	0,00	-0,33
Individual Statement of Comprehensive Income
Cost of services, goods and materials sold, including	13 533	12 910	104 382	103 759
Production cost of products sold	13 529	12 906	102 688	102 065
Gross profit on sales	-1 428	-805	1 326	1 949
Other revenues	603	-20	2 538	1 915

The change of the presentation also concerns the note covering operation sections of the Capital Group of PROCHEM S.A. and PROCHEM S.A. for 2009. Correction consists in moving the amount of PLN 1 467 thousand from the profit (losses) from the other operational activity to profit (loss) of section of the general contracting. thousand.

Capital Group of PROCHEM S.A.	General Contracting was	General Contracting should be	Total was	Total should be
Result
Profit (loss)of the section	-10 871	-12 248	-4 142	-5 609
Profit loss)from other operational activity			7 602	9 069
PROCHEM S.A.
Result
Profit (loss)of the section	-11 060	-12 527	-7 243	-8 710
Profit loss)from other operational activity			-111	1 356

A mistake arising during introducing of data into the Individual Statement of Financial Position as at 31 Dec. 2010 item – liabilities was also corrected, total should be 42 539.