Exclusive talks with MOL

PKN ORLEN informs that further to a resolution of the Management Board of Nafta Polska S.A. (“Nafta Polska”) on October 3, 2001 granting Magyar Olaj-és Gázipari Rt. (“MOL”) exclusivity for negotiations of the purchase of Nafta Polska’s 17.58 per cent stake in PKN ORLEN, the Management Board of PKN ORLEN has decided to enter into exclusive negotiations with MOL regarding a possible combination of their businesses. In connection therewith, an Exclusivity Agreement between Nafta Polska, PKN and MOL was signed on October 12, 2001.

Execution of the Exclusivity Agreement is part of the process the Company has undertaken in order to execute its combination with one of the oil concerns operating in Central Europe, as well as the third stage of the Company’s privatisation process.