PKN ORLEN subsidiary: initial capital increase

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe’s largest downstream oil company, announces the registration, on 5 March 2007, of an increase in the initial capital of PKN ORLEN’s subsidiary - Plocki Park Przemyslowo-Technologiczny Spolka Akcyjna (“PPP-T”), based in Plock, by a District Court in Warsaw (Poland). The initial capital of PPP-T was increased from PLN 50,460,860 to PLN 53,439,540, i.e. by PLN 2,978,680. This was covered by the placing of 297,868 registered shares (series “F”), carrying the right to 2 votes per share, of a nominal value of PLN 10 per share.
These shares are owned solely by the company’s founding shareholders, PKN ORLEN and “Miasto Plock” (the municipal borough of Plock), in the equal amount of 148,934 shares for each shareholder.

Shares series no: series “F”.
Nominal value of one share amounts to: PLN 10.

The value of the newly issued shares covered by PKN ORLEN in the form of a cash contribution amounts to PLN 1,489,340.
The value of the newly issued shares covered by Miasto Plock in the form of a non-cash contribution (assets) amounts to PLN 1,489,340.
The shareholder Miasto Plock, in order to cover 148,934 shares of PPP-T, contributed non-cash assets. The book value of these assets amounts as of 6 March 2007 in the PPP-T books to PLN 1,489,340.

After PPP-T’s initial capital increase, its capital structure comprises:
Miasto Plock – PLN 26,719,770 PLN – 50%
PKN ORLEN – PLN 26,719,770 PLN – 50%.

After the PPP-T initial capital increase, the capital structure of PPP-T is as follows:
- The total number PPP-T shares: 5,343,954
- Number of PPP-T shares held by Miasto Plock: 2,671,977
- Number of PPP-T shares held by PKN ORLEN: 2,671,977
- Number of votes at the General Meeting of Shareholders of PPP-T of each shareholder: 5,343,954
- Total number of votes at the General Meeting of Shareholders of PPP-T: 10,687,908.

See also: regulatory announcement no 52/2006 dated 1 September 2006, regulatory announcement no 18/2006 dated 20 March 2006 and regulatory announcement no 16/2006 dated 28 February 2006.