PETROVAL halts contract implementation

Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”), Central Europe’s largest downstream oil company, announces that on January 19, 2005 it received a notice from PETROVAL S.A. stating that PETROVAL was halting the implementation of a forward contract to supply crude oil (dated December 21, 2002) due to a Force Majeure event which impeded the contract’s performance. According to the notice delivered by PETROVAL S.A., the event that qualifies as a Force Majeure event and justifies interruption of the contract’s performance is Yukos’ inability to deliver crude oil. It is currently impossible to assess how long this situation will persist.

The Management Board of PKN ORLEN declares that the above described situation does not impede supply crude oil continuity thanks to previously undertaken contingencies. Crude oil deliveries are expected to be executed according to plan, thanks to term and supplementary crude oil delivery spot contracts.