Agreement with ABB Lumus

PKN ORLEN S.A. (“PKN ORLEN”), Central Europe’s largest downstream oil company, announces that on January 4th, 2002 PKN ORLEN entered into an agreement with ABB Lumus Global GmbH (“ABB”) with its head office in Mainz-Kastel (Germany) for comprehensive intensification of Ethylene Cracker II in Plock’s complex. The investment will allow increased ethylene production from 360 tt/y to 660 tt/y and increased propylene production from 130 tt/y to 315 tt/y.

The investment is planned to be completed by the end of 2004. By this time the current production level of ethylene and propylene will remain unchanged. The final stage of the intensification will be performed during scheduled overhaul of the existing cracker at the end of 2004. The estimated value of the contract is PLN 650 m (six hundred fifty million).