PKN ORLEN submits applications regarding mandatory tender offers for shares in UNIPETROL, PARAMO and SPOLANA.

PKN ORLEN has today filed with the Czech Securities Commission applications for consent to PKN ORLEN’s announcements of mandatory tender offers for the shares issued by UNIPETROL, PARAMO and SPOLANA.

In relation to the purchase on May 24, 2005 of shares which entitle PKN ORLEN to 62.99% of the votes in UNIPETROL and 9.76% votes in SPOLANA, and according to Czech law, PKN ORLEN is required to announce mandatory tender offers for shares in UNIPETROL, PARAMO and SPOLANA. The terms of the mandatory tender offers have to be approved by the Securities Commission prior to their announcement.

Previous applications submitted by PKN ORLEN were rejected by the Commission due to irregularities in the valuation methodology of shares, attached to the application and compiled by an independent expert NS Group. PKN ORLEN hopes that the prices proposed in new applications fully reflect valuation made according to the methodology fulfilling expectations of Securities Commission.

The prices proposed by PKN ORLEN in applications submitted today are as follows: CZK 135 per one UNIPETROL share; CZK 978 per one PARAMO share; and CZK 155 per one SPOLANA share.

According to Czech law the SC has a minimum of 8 and a maximum of 13 working days to make a decision on the application.

Following the announcement by PKN ORLEN of mandatory tender offers, PKN ORLEN will immediately regain its voting rights attached to the shares of UNIPETROL and SPOLANA. In connection with the Extraordinary General Meeting convened by UNIPETROL, PKN ORLEN will apply to the Securities Commission for a suspension of the prohibition regarding the exercise of the voting rights attached to the shares of UNIPETROL and SPOLANA. According to Czech Law, the Securities Commission can make such a decision.

Cezary Smorszczewski, Chief Investment Officer at PKN ORLEN, said:

“PKN ORLEN has pursued the highest standards of transparency and has placed considerable efforts in preparing the new applications. We hope that the applications submitted today are of the highest caliber and reflect the expectations of the Czech Securities Commission. I also hope that we will be able to execute the mandatory tender offers process soon, so that we can successfully continue the integration of PKN ORLEN and UNIPETROL.”