The initial capital increase in Krystynka

PKN ORLEN S.A. (“PKN ORLEN”), Central Europe’s largest downstream oil company, announces that on 3 January 2002 it was notified about registration of a change in the initial capital in Sanatorium Uzdrowiskowe Krystynka Sp.z o.o. in Ciechocinek (“Krystynka Spa”).

The registration took place in Sad Rejonowy w Toruniu, VII Wydzial Gospodarczy Krajowego Rejestru Sadowego (“District Court in Torun”) on 19 December 2001.

The initial capital was raised from PLN 100,000 (one hundred thousand) to PLN 2,295,000 (two million two hundred and ninety five thousand) through contribution to Krystynka Spa of properties and lands which this company had on lease so far. In the accounting records of PKN ORLEN the book value of assets raised as a contribution-in-kind amounts to PLN 1,446,399.36 (one million four hundred forty six thousand three hundred and ninety nine zlotys thirty six groszy).

After the change in the initial capital PKN ORLEN increased its holding in the company from 51% to 97.86% and can execute the same number of votes at the general meeting of shareholders. The employees of the company hold the remaining 2.14% of shares.