PKN ORLEN - consolidated financial results 2Q and 1H 2009

• Positive operating and net results for 1H 2009 
• Operating income in 2Q at the level of 661 million PLN, net income of 1169 million PLN
• Decrease in debt of 1 billion PLN, despite expenditure for redemption of 10% shareholding in Mazeikiu Nafta
• Over 1.9 billion PLN from operating activities.
• Increase in retail volume sales of over 5 percent (y/y) and a steady increase in market share.
• Increase in fuel yield of 1.1 pp in comparison to 2Q 2008, despite technological standstill
• Implementation of saving schemes resulted in reduction of operating costs in 1H by 300 million PLN in comparison to budget plans.

In 2Q 2009 PKN ORLEN Capital Group significantly improved its financial results. In this period the holding company generated net income to the amount of 1169 million PLN, and operating income to the amount of 661 million PLN. Good results enabled the Company to minimize the loss from 1Q 2009 and close 1H with a positive net result at the level of 77 million PLN and operating income to the amount of 340 million PLN. The main reason for the better results was a significant increase in sales volumes and income in the retail segment, as well as the effect of inventory revaluation and the impact of exchange rates differences.

The results for 2Q2009 were under the strong influence of macroeconomic factors (differential, margin) and charging with the financial effect of planned and unplanned maintenance shutdowns in refineries in Poland, the Czech Republic and Lithuania. The holding company's revenue in 1H 2009 amounted to over 31 billion PLN. The Group generated over 3 billion PLN from operating activities in this period.

2Q 2009 was characterized by a distinct improvement in retail sales reaching 5 percent of volume in comparison to 2Q of the previous year; despite reducing the number of stations by 75 (in comparison to the end of 2Q 2008) as a result of a network optimization process. Against 2Q of the previous year, the operating income of this segment also rose significantly (by 83 percent) and amounted to 223 million PLN.

Excellent results in retail sales were the outcome of a consistent network restructuring, rebranding, development of non-fuel offer and successful promotional actions. The last half-year also represented the period of investment in the extension of the sales network. In the first half of 2009, 39 stations were built and entirely modernized, and 24 sites were integrated into the franchise network.

In 2H2009 PKN ORLEN will continue to focus on a steady increase in efficiency and maximization of cash flow. The holding company is planning to make investment outlays in 2H 2009 at the level below those incurred in 1H 2009.

Work on the process of the disposal of Anwil are proceeding according to schedule. In the second half of 2009, work on separating business processes and preparing Anwil to function outside PKN ORLEN Capital Group will be finalized. An advisor for the divestment process was appointed, and an information memorandum will be completed in September. First offers are expected to be received in October.  A transaction advisor for the sale of shares in Polkomtel was also selected. Further actions will be biased on launching an offer process for external investors.

The PKN Orlen holding company participates in the consultative process concerning work on the Act increasing the State's involvement in the storage of obligatory reserves.  Currently the obligatory reserves charge on the balance sheet of PKN ORLEN Group is 5.6 billion PLN.

At the same time the Company fulfills the legal requirements of the National Indicative Target ("NIT") in the area of biofuels. In 2009 the requirements for renewable fuels share were increased in Poland up to 4.6 percent (from 3.45 percent in 2008). The target has been met by PKN ORLEN.