Changes in the Mazeikiu Nafta Management Board

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe’s largest downstream oil company hereby informs, that on 14 December 2006 there was a meeting of the Supervisory Council of AB Mazeikiu Nafta (“Mazeikiu Nafta”) composed of six Members indicated by PKN ORLEN and three indicated by the Government of the Republic of Lithuania.

The Supervisory Board of Mazeikiu Nafta during its meeting decided on personnel changes in the Mazeikiu Nafta Management Board: four up until now representatives of Yukos International UK B.V have been replaced by four persons indicated by PKN ORLEN. Mazeikiu Nafta Supervisory Council appointed to the Management Board of Mazeikiu Nafta Mr. Jan Maciejewicz, Mr. Pawel Szymanski, at the same time it appointed again to the Mazeikiu Nafta Management Board Mr Krystian Pater, and Mr. Paul Nelson English, up until now the General Director of Mazeikiu Nafta. Presently Mazeikiu Nafta Management Board consists of seven Members.
The Mazeikiu Nafta Management Board, with its new composition, may start work on 14 December 2006.

Moreover, the Supervisory Board of Mazeikiu Nafta appointed to the position of Chairman of the Supervisory Board Mr. Marek Moroz – a representative of PKN ORLEN. In accordance with Lithuanian Law, Members of the Management Board of the mother company are not allowed to be Members of the Supervisory Council of the daughter company.

This means that the Members of the PKN ORLEN Management Board cannot be appointed to positions as Members of the Mazeikiu Nafta Supervisory Council. They will be appointed as Members of the Mazikiu Nafta Management Board, what stems also from a different than in the Polish Law role of the management board in the Lithuanian company corporate governance. The majority of day-to-day operating management is conducted by the General Director of Mazeikiu Nafta. Competencies of Mazeikiu Nafta Management Board are directed to making strategic decisions (similar role as the supervisory board in the Polish Law).

With reference to the policy accepted two years ago and used within the PKN ORLEN Group, persons delegated from PKN ORLEN to the Supervisory Council and Management Board of Mazeikiu Nafta will renounce any remuneration from that additional position.

PKN ORLEN intention is that the Supervisory Council in its new composition appoint to the Mazeikiu Nafta Management Board two additional representatives of PKN ORLEN: Mr. Igor Chalupec and Mr Piotr Kownacki. See also: Regulatory announcement no 83/2006 dated 14 December 2006, Regulatory announcement no 79/2006 dated 4 December 2006, Regulatory announcement no 76/2006 dated 29 November 2006, Regulatory announcement no 68/2006 dated 7 November 2006, Regulatory announcement no 58/2006 dated 26 September 2006, Regulatory announcement no 49/2006 dated 4 August 2006, Regulatory announcement no 47/2006 dated 13 July 2006, Regulatory announcement no 37/2006 dated 9 June 2006, Regulatory announcement no 33/2006 dated 26 May 2006 and also the record of the Internet transmission of The Extraordinary General Meeting of PKN ORLEN dated November 30th, 2006.

This announcement has been prepared pursuant to Article 56 section 1 point 1 of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading, and Public Companies dated 29 July 2005 (Journal of Laws No. 184, item 1539).