Purchase of shares in ORLEN Morena

Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”) Central Europe’s largest downstream oil company, announces that on 1 July 2004, on the basis of share transfer agreements, the Company purchased 5,200 shares in ORLEN Morena Sp. z o.o., based in Gdansk (“ORLEN Morena”), with a par value of PLN 1,000 each, representing 49,52% of the initial capital of ORLEN Morena and the same number of votes at its shareholders’ meeting, for a total price of PLN 5,954,000.00 as a result of the agreement between PKN ORLEN and FOX-OIL Company Sp. z o.o. based in Gdansk. Following the aforementioned transaction, PKN ORLEN owns 100 per cent of ORLEN Morena.

Purchase of the shares of the ORLEN Morena is in a line with PKN ORLEN strategy, which envisages the consolidation of ownership Regional Market Operators. ORLEN Morena activitities include retail and wholesale trade of fuels produced by PKN ORLEN.

ORLEN Morena is a Regional Market Operator in Northern Poland Except for the share transfer agreements referred to above, no other relations exist between the issuer and the issuer’s managing or supervising persons and the sellers of the shares.