Development Programme of PKN ORLEN for 2001 - 2010

The Development Programme of PKN ORLEN S.A. - 2001 - 2010

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe's largest downstream oil company, announces today that the Management Board of PKN ORLEN approved “ The Development Programme of PKN ORLEN SA. - 2001 - 2010”, which outlines the company’s development strategy in the following areas:

Refinery production, including, in particular, optimisation of crude oil processing and the structure of processed crude to conform to the standards of liquid fuels envisaged to be mandatory in European Union (in the period in question);

Petrochemical production, aimed at increased production of petrochemicals tailored to market conditions (taking into consideration forecasted demand / supply parity and the deficit of domestic plastics in Poland) and taking advantage of the integration of the petrochemical plant with the adjacent refinery.

Marketing infrastructure, and in particular development and upgrade of the retail network and logistics systems.

The Management Board of PKN ORLEN announces that in accordance with Company’s statutes the Development Programme requires approval of the Supervisory Board of PKN ORLEN.

At the same time the Management Board of PKN ORLEN informs that the development of the petrochemical plant in Płock envisages in particular:

Increased ethylene production from 360,000 tonnes per annum to 660,000 tonnes per annum;

Increased propylene production from 240,000 tonnes per annum to 445,000 tonnes per annum;

Considerable increase in benzene and butadiene production (semi-finished products for the chemical industry);

Construction of new world-scale downstream polyolefins units (scrap and build) taking into account growing market requirements in this area.

Total expenditure planned for the development of the petrochemical plant in Płock is approximately USD 550 m.

PKN ORLEN confirms that it is in exclusive and advanced talks with a leading world producer and distributor of polyolefins - Basell Europe Holding BV (a 50:50 J-V company between Shell and BASF) - with regards to setting up a Płock based polyolefins J-V company. The talks and business conditions are planned to be concluded in September this year.