Sale of shares in Petrogaz Inowroclaw

Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”), Central Europe’s largest downstream oil company announced today that on 9th July 2001 PKN ORLEN sold all the 3,825 (three thousand eight hundred and twenty-five) shares in its gas distribution subsidiary - Petrogaz Inowroclaw Sp. z o.o (“Petrogaz Inowroclaw”).

Total book-value of the shares sold equals PLN 1,912,500. The sale was realised through a contribution-in-kind of shares to ORLEN Petrogaz Plock Sp. z o.o (ORLEN Petrogaz).

In return, PKN ORLEN will hold 1,912 shares of ORLEN Petrogaz of the total value of PLN 1,912,000. PKN ORLEN holds 100% stake in ORLEN Petrogaz.

There are no connections between managing and supervising bodies of PKN ORLEN and ORLEN Petrogaz and Petrogaz Inowroclaw. This transaction marks another step in the process of restructuring of gas companies in the Capital Group of PKN ORLEN as announced on 2nd February 2001.