The term contract regarding supply of crude oil with Petroval S.A.

The Management Board of Polski Koncern Naftowy ORLEN S.A. (the "Company") informs that on 21 December 2002 the Company entered into the term contract regarding supply of crude oil with Petroval S.A., a company with its seat in Geneva organized under the laws of Switzerland associated with YUKOS Group (the Agreement").

On the basis of the Agreement, Petroval S.A. is obliged to supply to the Company crude oil until the year 2009 (inclusive) with the possibility of extension of the above period for another 3 years. Petroval S.A. is obliged under the Agreement to supply to the Company crude oil in the average quantity of 3,000,000 tons per year with possibility to increase the quantity of crude oil supplied up to 3,600,000 tons starting from the year 2004, and additionally to increase the annual quantity of supplied crude oil by additional 1,600,000 starting from the year 2006.

The terms and conditions of the Agreement are based on the international standards of the crude oil supply contracts as well as on the existing practice of the Company relating to similar contracts. The price to be paid by the Company for the crude oil purchased under the Agreement shall be calculated on the basis of the formula referring to the quotations of the basket of specified crude oils prevailing on the international markets.

The Agreement shall come into force under the condition precedents that until 13 January 2003 OJSC "YUKOS OIL CORPORATION", the company organized under the laws of Russia, shall provide the Company with duly executed guarantee for the performance of the obligations of Petroval S.A. under the Agreement; the agreed form of the guarantee referred to above initialized by the representatives of OJSC "YUKOS OIL CORPORATION and the Company, is attached as the Schedule to the Agreement.

The Agreement contains specific provisions regarding payment of the pre-estimated damages, which are customary for the international contracts of similar nature. The payment of pre-estimated damages provided under the Agreement excludes the right to claim further damages exceeding the amount of such pre-estimated damages.

The Agreement constitute the "material agreement" within the meaning of the Order of Ministers' Council dated 16 October 2002 on the current and periodical information provided by the issuers of the securities as the value of the Agreement exceeds the amount of 10% of the own capitals of the Company.

About PKN ORLEN SA

PKN ORLEN S.A. is one of the largest companies in Central & Eastern Europe, with listings on the Warsaw and London Stock Exchanges, and trading on the OTC market in the U.S.A. It is Poland's largest refiner of crude oil and marketer of world-class petroleum and related products. It has a substantial wholesale and retail distribution system that includes the largest network of service stations in Poland. It also has significant financial investments in the telecommunications sector in Poland.