Impact of LIFO valuation of inventories on the financial results of PKN ORLEN in Q2 2005 and six months to end-June 2005

Regulatory announcement no 54/2005 dated 16 August 2005

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe’s largest downstream oil company, would like to outline the impact of LIFO valuation of inventories on the unconsolidated financial results of PKN ORLEN and the consolidated financial results of the PKN ORLEN Capital Group for Q2 2005 and post Q2 2005.