Hydrocracking installation shut down in PKN ORLEN

Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”, “Company”), Central Europe’s largest downstream oil company, herby informs that on October 13th, 2006 PKN ORLEN shut down its hydrotreatment plant in order to replace worn elements. The shut down of the unit has been scheduled for approximately 12 days, until the replacements are complete and final tests carried out. The facility’s overhaul will be performed within a very fast pace, given that the standard period for such work is normally around 18 days.

Given the above circumstances, PKN ORLEN has prepared a precise overhaul work-schedule together with different scenarios for the operations of other units. PKN ORLEN will ensure that the hydrotreatment plant shut down will not adversely affect product supplies from PKN ORLEN. The company has arranged for imports of additional fuel volumes, which will completely offset any drop in production as a result of the shut down. This means that both wholesale contracts and retail outlet supplies will be fulfilled without interruption.

PKN ORLEN assessed that the stoppage of the hydrotreatment plant will reduce the PKN ORLEN unconsolidated financial result from operations for the fourth quarter 2006 by PLN 56 m.