Sale of the Bitumen Plant

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe's largest downstream oil company, announces that, following the resolution of the Extraordinary General Meeting of Shareholders of PKN ORLEN dated 17th April 2003 regarding the sale and lease of the property comprising part of the Bitumen Plant, it signed on 31 May 2003 an agreement for the sale of the Bitumen Plant to BITREX Sp. z o.o. based in Trzebinia ('BITREX') for PLN 81,754,886.59. The amount remains subject to adjustment by ongoing assessment of finished goods and work in progress.

Additionally, following the resolution of the Ordinary General Meeting of Shareholders of BITREX dated 23 May 2003 regarding an increase in the initial capital of BITREX (100% owned by Rafineria Trzebinia S.A.), PKN shall acquire 100,000 shares (PLN 500 each share) representing 82.46% of the initial capital in BITREX (soon to be renamed ORLEN Asfalt). The remaining 17.54% stake shall be owned by Rafineria Trzebinia S.A. The capital increase remains subject to registration by The National Registry Court.

After registration of the capital increase, PKN ORLEN shall own 82.46% shares in the initial capital of ORLEN Asfalt and the same number of votes at the General Meeting of Shareholders

ORLEN Asfalt will specialize in production and sale of bitumens.

The acquisition of shares in the increased initial capital was covered from PKN ORLEN's cash flow and is classified as a long-term investment.