ComArch SA informs that on 30 September 2005, it signed an agreement with the Ministry of Education and Science for the supply, installation and integration of computer labs in five Polish administrative regions: the lubelskie, pomorskie, zachodniopomorskie, kujawsko-pomorskie and warminsko-mazurskie regions.

The agreement is worth 54.573 million PLN (in words: fifty-four million five hundred seventy-three thousand Polish zloty) gross. In fulfilling the agreement, ComArch will supply hardware to 648 primary and secondary schools and 405 post-secondary schools. This will include 1053 servers, 1053 laptops, 14,175 PCs, 1458 scanners, 1458 network printers and 1053 video-projectors. The total amount of agreements signed with the Ministry over the past 12 months is 56.979 million PLN gross. This latest agreement, dated 30 September 2005 is the largest agreement to date.

In accordance with the agreement regulations, the maximum amount of agreement penalties has not been set. In the event of not meeting the delivery deadline, ComArch SA could be liable to pay statutory interest rates for each day of delay. In the event of the Ministry withdrawing from the agreement through ComArch's fault, the penalty is equivalent to 5% of the unfulfilled part of the agreement. In case of network delivery or installation that is not in accordance with the agreement terms, the penalty is equivalent to 1% of the value of network delivery or installation, per each day that it is not replaced. In cases of delay in delivery of warranty service, the agreement stipulates a penalty of 5% of the value of the lab part to be repaired for each day until it is repaired. In certain cases stipulated in the agreement, penalties of 50% of the value of the undelivered lab part could be imposed. Payment of penalties does not exclude instigation of further compensation claim proceedings for amounts greater than the penalties. The value of Comarch's share capital constitutes the agreement's criterion. The agreement value is 56.979 m PLN.