PKN ORLEN gains sole rights to supply Mazeikiu Nafta with crude oil

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), Central Europe’s largest downstream oil company hereby informs that, on 5 January 2007, PKN ORLEN signed an agreement with AB Mazeikiu Nafta (“Mazeikiu Nafta”) that gives to PKN ORLEN the exclusive rights to supply Mazeikiu Nafta with crude oil (“Agreement”). The signing of the Agreement is connected with the centralization of crude oil purchases to the PKN ORLEN Capital Group, including supplies to the refineries in Poland, the Czech Republic and Lithuania.

The Agreement is concluded for an undetermined period and will come into force on the date of signing. The crude oil deliveries associated with the Agreement will be realized with the use of the “Druzba” pipeline and through the marine terminal in Butinge.

On the day of signing the Agreement, the estimated value of the crude oil supplies to Mazeikiu Nafta, realized within the Agreement, in the first five years has been assessed at the level of ca. USD 19 billion (i.e. approximately PLN 56.49 billion, based on average USD/PLN exchange rates as of 5 January 2007, as stated by the National Bank of Poland).

PKN ORLEN holds 84.36% of shares in the initial capital of Mazeikiu Nafta as of 5 January 2007.

In accordance to the “Regulation of the Minister of Finance dated 19 October 2005 on current and periodic information to be published by issuers of securities” the agreement signed by PKN ORLEN constitutes a “significant agreement” due to the fact that its value exceeds 10% of PKN ORLEN’s equity.

This announcement has been prepared pursuant to par. 5 section 1 subsection 3 and § 9 of the Regulation of the Minister of Finance dated October 19th, 2005 on current and periodic information to be published by issuers of securities (Journal of Laws No. 209, item 1744).