PKN ORLEN subsidiary initial capital increase

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe’s largest downstream oil company, informs of the registration on 16 March 2006 of an increase in the initial capital of PKN ORLEN subsidiary - Plocki Park Przemyslowo – Technologiczny Spolka Akcyjna („PPPT”), based in Plock, by a District Court in Warsaw (Poland). The initial capital of PPPT was increased from PLN 15,460,860 to PLN 25,460,860, i.e. by PLN 10,000,000. This was covered by a private placement of 1,000,000 registered series “D” shares having preference to 2 votes per one share, owned by the shareholders-founders PKN ORLEN and “Miasto Plock” (municipal borough Plock) in the equal parts, 500,000 shares for each shareholder.
Series no: series “D”
Nominal value of one share amounts to PLN 10

All newly issued shares were covered by cash contribution.

After an initial capital increase, the capital structure of PPPT comprises of:
Shareholder - founder Miasto Plock – PLN 12,730,430 PLN – 50%
Shareholder - founder PKN ORLEN – PLN 12,730,430 PLN – 50%

After an initial capital increase, the total number of votes of the General Meeting of Shareholders of PPPT in relation to the total number of shares issued amounts to 5,092,172.

The amount of the initial capital change of PPPT amounts to PLN 10 m, i. e. ca. EUR 2,600,374 based on a EUR/PLN average exchange rate of 3.8456 as of December 15th, 2005, (day of passing the resolution regarding the change of initial capital by the General Meeting of Shareholders) as quoted by the National Bank of Poland, and is greater than EUR 500,000.

See also: Regulatory announcement no 16/2006 dated 28 February 2006.