Sale of shares in 7 services companies

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") Central Europe's largest downstream oil company, announces that on 31 December 2003, on the basis of share transfer agreements, the Company sold:

1. 7,945 shares in Serwis Slupsk Sp. z o.o. ("Serwis Slupsk"), with a par value PLN 100 each, representing 99.76% and the same number of votes at its shareholders' meeting, for a total of PLN 1,324,999.15:

a) 2,945 shares sold to Serwis Slupsk in order to remit them, for a total of PLN 1,199,999.15,
b) 5,000 shares sold to Serwis Slupsk employees, for a total of PLN 125,000.00:
- 4,000 shares were sold to Mr Grzegorz Mikolajczyk, for a total of PLN 100,000.00,
- 1,000 shares were sold to Mr Lech Rozycki, for a total of PLN 25,000.00,

2. 360 shares in Serwis Wroclaw Sp. z o.o. ("Serwis Wroclaw"), with a par value PLN 500 each, representing 88.33% of the initial capital of Serwis Wroclaw and the same number of votes at its shareholders' meeting, for a total of 745,000.00:

a) 40 shares were sold to Serwis Wrocław in order to remit them, for a total of PLN 585,000.00,
b) 320 shares were sold to Serwis Wrocław employees, for a total of PLN 160,000.00:
- 275 shares were sold to Mr Tadeusz Gluszczak, for a total of PLN 137,500.00,
- 30 shares were sold to Mr Piotr Winiarski, for a total of PLN 15,000.00,
- 15 shares to Mrs Sylwia Gorazd, for a total of PLN 7,500.00,

3. 431 shares in Serwis Krakow Sp. z o.o. ("Serwis Krakow"), with a par value PLN 500 each, representing 83.20% of the initial capital of Serwis Krakow and the same number of votes at its shareholders' meeting, for a total of PLN 230,000.00:

- 159 shares were sold to Mr Marian Wojciech Pecka, for a total of PLN 84,849.19,
- 172 shares were sold to Mrs Halina Snopek, for a total of PLN 91,786.54,
- 60 shares were sold to Mr Krzysztof Gajda, for a total of PLN 32,018.56,
- 40 shares to Mr Leopold Karola, for a total of PLN 21,345.71,

4. 2,387 shares in Serwis Podlasie Sp. z o.o. ("Serwis Podlasie"), with a par value PLN 100 each, representing 89.67% of the initial capital of Serwis Podlasie and the same number of votes at its shareholders' meeting, for a total of PLN 298,375.00:

- 1,323 shares were sold to Mr Bogusław Kuzmicki, for a total of PLN 165,375.00,
- 532 shares were sold to Mr Adam Wladyslaw Potocki, for a total of PLN 66,500.00,
- 532 shares were sold to Mr Stanislaw Konopka, for a total of PLN 66,500.00,

5. 6,495 shares in Serwis Zachod Sp. z o.o. ("Serwis Zachod"), with a par value PLN 100 each, representing 74.31% of the initial capital of Serwis Zachod and the same number of votes at its shareholders' meeting, for a total of PLN 754,978.80:

a) 2,140 shares were sold to Serwis Poznan, for a total of PLN 248,753.60,
b) 2,140 shares were sold to Serwis Szczecin, for a total of PLN 248,753.60,
c) 2,215 shares were sold to Serwis Zachod employees, for a total of PLN 257,471.60:
- 1,195 shares were sold to Mr Jerzy Preuss, for a total of PLN 138,906.80,
- 1,020 shares to Mr Piotr Bialowas, for a total of PLN 118,564.80,

6. 1,581 shares were sold in Serwis Poznan Sp. z o.o. ("Serwis Poznan"), with a par value PLN 100 each, representing 51.00% of the initial capital of Serwis Poznan and the same number of votes at its shareholders' meeting, for a total of PLN 190,004.24:

a) 734 shares were sold to Serwis Szczecin, for a total of PLN 88,212.12,
b) 734 shares were sold to Serwis Zachod, for a total of PLN 88,212.12,
c) 113 shares were sold to Mr Wieslaw Wylupko, an employee of Serwis Poznan for a total of PLN 13,580.34

7. 206 shares were sold in Serwis Szczecin Sp. z o.o. (Serwis Szczecin), with a par value of PLN 500 each, representing 49.05% of the initial capital of Serwis Szczecin and the same number of votes at its shareholders' meeting, for a total of PLN 182,134.90:

a) 103 shares were sold Serwis Zachod, for a total of PLN 91,067.45,
b) 103 shares were sold to Serwis Poznan, for a total of PLN 91,067.45,

Following the above transaction PKN ORLEN shall not have any holding in any of the companies, except of 122 shares in Serwis Szczecin representing 29,05% of the initial capital of Serwis Szczecin and the same number of votes at its shareholders' meeting. The 122 shares will be sold till 15th January 2004 to Mr Andrzej Wrobel , an employee of Serwis Szczecin, for a total of PLN 107,866.30.

As a result of the sale of the above-mentioned 7 service companies, PKN ORLEN shall, including the sale of 122 shares in Serwis Szczecin to Mr Andrzej Wrobel, record a gross profit of PLN 1,433,058.73. As of the date of transaction, the companies employed 245 people.

Except in respect of the execution of the share transfer agreements referred to in the above, no other relationship exists between the issuer and the issuer's managing or supervising persons, and the sellers of the shares.