Changes in the Management Board

The Supervisory Board of PKN ORLEN has appointed, following its meeting on 21 December 2005, Mr. Cezary Stanislaw Filipowicz to the position of the Deputy President of the PKN ORLEN Management Board with effect from 2 January 2006. This complies with the motion of the Ministry of the State Treasury according to the § 9 item 1 point 3 of the Articles of Association of PKN ORLEN.

Financial markets acknowledge PKN ORLEN

PKN ORLEN’s IR has been recognised as the best amongst Poland’s listed companies in the WarsawScan 2005 survey conducted by NBS Public Relations.

Re. Chairman of the Supervisory Board

PKN ORLEN informs that today the Appeal Court in Warsaw, having recognised the appeal of Bengodi Finance SA against the decision of the District Court in Warsaw dated 1 June 2005, has altered the decision and announced the invalidity of Resolution No 14 of the General Meeting of PKN ORLEN of 5 August 2004, regarding the appointment of Jacek Bartkiewicz to the position of Chairman of the Supervisory Board of PKN ORLEN.

The new economy retail brand

PKN ORLEN has today introduced in Poland its economy stations under the BLISKA brand. The segment is addressed at drivers who look for quality at a reasonable price. The implementation of the economy retail segment derives from PKN ORLEN’s strategy of regaining share in the domestic retail market.

Consolidated financial results of PKN ORLEN - Q3'2005

In the third quarter this year, the ORLEN Group achieved a record net income of PLN 980 m. The return on average capital employed (ROACE) equalled 18.3%, while earnings before interest depreciation taxes and amortization (EBITDA) amounted to PLN 1,622 m. Operating cost cutting in the quarter generated savings of PLN 228 m. The total effects of the cost-cutting programme (KPRKO) attained during the first three quarters of this year has yielded 82% of the annual savings planned.

Segment Management system in the ORLEN Group

Starting on 1 January 2006, a new management structure is to be implemented across the ORLEN Group. It will be based on the principles of the segment management system. This undertaking is aimed at achieving further efficiency improvements within the developing ORLEN Group.

Strategy for ORLEN Deutschland

Advanced restructuring and development constitute the main assumptions of the strategy for ORLEN Deutschland for the years 2006-2009. The forecast ROACE under this concept is equal to 18.4%, including favourable SWAP transactions. The preferred scenario does not exclude disposal of assets in the future.

PKN ORLEN completed purchase of UNIPETROL

Today PKN ORLEN has added an additional CZK 1.645 bln, ie. 14.55%, to the initial price paid for the controlling stake in the Czech Unipetrol. The transaction marks a completion of the purchase of 62.99% of Unipetrol. The final price was calculated upon the adjustment option as set down in the Agreement between PKN ORLEN and the National Property Fund (NPF).

ORLEN completed its biggest petrochemical investment

Today PKN ORLEN officially completed the Olefin II revamping, an investment which has allowed the company to double its ethylene and propylene streams – key feedstocks for the production of plastics. The modernized plants are capable of producing up to 700,000 tonnes of ethylene and up to 385,000 tonnes of propylene per annum. The bulk of the output will be streamed to the new plants of Basell Orlen Polyolefins and Anwil Wloclawek.