Updated corporate governance statement of PKN ORLEN

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN", “Company”), Central Europe’s largest downstream oil company, hereby announces the updated corporate governance statement implied by resolution no 44/1062/2004, dated December 15th, 2004, of the Warsaw Stock Exchange Supervisory Board (“corporate governance rules”).

In the regulatory announcement no 43/2006 dated 28 June 2006 PKN ORLEN announced an updated annual statement regarding the Company’s compliance with the corporate governance rules. This year PKN ORLEN declares, as it also did a year ago, the observance of all the corporate governance rules, except for rule no 20 regarding the independence of at least half of the members of the Supervisory Board.
PKN ORLEN's Management Board recommended to the Company's General Meeting, held on 29 June 2005, acceptance of the principle of observing all corporate governance rules. Rule no 20 was the only one not approved by Shareholders at the Ordinary General Meeting. Comparing this year’s PKN ORLEN corporate governance statement to that published last year, a few comments referring to the particular corporate governance rules have been adjusted for the changes made in 2006 in the following corporate statements of PKN ORLEN: The Articles of Association, The Constitution of the General Meeting of Shareholders, The Constitution of the Supervisory Board, and The Constitution of the Management Board.

In addition, the comment regarding rule no 19 has been completed with the information that the Company encourages its shareholders to present candidates for membership of the Supervisory Board before the General Meeting, and that such presentations are provided in the public domain.

See also: regulatory announcement no 43/2006 dated 28 June 2006.