PKN ORLEN signed agreements with PSE and TE Tel-Energo

1. Under Art. 81, par.1, item 2 of the Law on Public Trading of Securities dated 21 August 1997 (Official Journal of Bills No 118, item 754 with the later amendments) the Management Board of Polski Koncern Naftowy ORLEN S.A. wishes to inform that on June 8th, 2000 Polski Koncern Naftowy ORLEN S.A. in Plock signed with:

a/ Polskie Sieci Elektroenergetyczne S.A. w Warszawie,
b/ Telekomunikacja Energetyczna Tel-Energo S.A. w Warszawie, “ Agreement on keeping to the conditions of consolidation and development of the telecommunication investments."

The subject of the agreement concerns regulation of co-operation principles of the parties in the field of their telecommunication operations and due to their participation, as partners, in the capital of Niezalezny Operator Miedzystrefowy Sp z o.o w Warszawie (long distance operator) with its principal office in Warsaw. The Company's scope of business covers, among others, telecommunication services, instalment, operation, upgrade and utilisation of the telecommunication systems. On May 29th , 2000 the Company was notified by the Ministry of Telecommunications of willingness to grant Licence and Permission to provide telecommunication services, especially of long-distance type. The agreement foresees unconditional share capital rise of Niezalezny Operator Miedzystrefowy Sp z o.o w Warszawie (long distance operator) at total PLN 139 000 000, out of which Polski Koncern Naftowy ORLEN S.A. in Plock will account for 486 500 of new shares each share of the value of PLN 100 and total value of PLN 48 650 000 covered in cash, which accounts for 35% of the share capital and votes at the assembly of the Company. Under condition, in a short term perspective the agreement foresees further capital rises of this Company at the total amount of PLN 160 000 000 (Total share capital of Niezalezny Operator Miedzystrefowy Sp z o.o w Warszawie will be PLN 300 000 000) out of which Polski Koncer Naftowy ORLEN S.A. is to take new shares at the total value of PLN 56 000 000

2. On June 8th , 2000 there was held the Extraordinary General Assembly of Shareholders of Niezalezny Operator Miedzystrefowy Sp z o.o w Warszawie. Under resolution of the above (see item 1) assembly of shareholders of Niezalezny Operator Miedzystrefowy Sp z o.o w Warszawie (long distance operator) passed share capital rise, in which Polski Koncern Naftowy ORLEN S.A. in Plock takes 486 500 of new shares in share capital, each share of the value of PLN 100 and total value of PLN 48 650 000. Shares purchase will be made in proportion to shares Polski Koncern Naftowy ORLEN S.A. in Plock already owns in Niezalezny Operator Miedzystrefowy Sp z o.o w Warszawie (long distance operator).