Acquisition of shares in POLIMEX-ENERGO

Polski Koncern Naftowy ORLEN S.A. ('PKN ORLEN'), Central Europe's largest downstream oil company, announces that on 9th June 2003, under an Agreement with Warsaw-based POLIMEX-CEKOP, it purchased 7,499 shares in POLIMEX-ENERGO, a limited liability company based in Cracow, with a par value of PLN 100 per share, representing 24.99% of the initial capital of POLIMEX-ENERGO and the same number of votes at the shareholders' meeting. The price of the above transaction totalled PLN 97,487. The transaction was financed from PKN ORLEN's cash flow and is treated as a long-term investment.

PKN ORLEN and POLIMEX-CEKOP intend that POLIMEX-ENERGO, which they plan to rename POILEN, should become the foundation for future co-operation between selected Polish companies in Iraq.

PKN ORLEN has a long term relationship with POLIMEX-CEKOP and has owned a 0.52% stake in the company since 4th May 1995.