Purchase of shares in ETYLOBENZEN Plock

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe’s largest downstream oil company, announces that on October 16th, 2006, it signed with Firma Chemiczna DWORY, headquartered in Oswiecim, Poland, a contract of partnership under the name ETYLOBENZEN Plock Spolka z ograniczona odpowiedzialnoscia („ETYLOBENZEN Plock”).

The initial capital of ETYLOBENZEN Plock amounts to PLN 12 m and is divided into 1,200 equal and indivisible shares with a par value PLN 10 000 of each share.

PKN ORLEN purchased 612 shares in ETYLOBENZEN Plock, representing 51% of the initial capital of ETYLOBENZEN Plock and 51% of votes at the General Meeting of shareholders of ETYLOBENZEN Plock, for the total price of PLN 6,120,000.

The purchased shares in ETYLOBENZEN Plock will be paid for by PKN ORLEN in the form of a cash contribution of PLN 5,850,000 and non-cash contribution of PLN 270,000. The book value of the purchased shares in the PKN ORLEN books will be equal to the price of purchase.

Shares purchased by PKN ORLEN will be paid by the own sources of cash.

The Management Board of ETYLOBENZEN Plock consists of two persons: the President of the Management Board and Member of the Management Board. The President of the Management Board is a PKN ORLEN employee.

ETYLOBENZEN Plock will be producing and selling organic chemicals.