Rafineria Jedlicze has disposed of its shares in Raf-Remat.

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that on 12 December 2007 its subsidiary, Rafineria Nafty Jedlicze, a joint stock company headquartered in Jedlicze (“Rafineria Jedlicze”), as seller, and Petro-Mechanika a limited liability company headquartered in Plock (“Petro-Mechanika”), as purchaser, signed an agreement regarding the sale of 16,879 shares (“Disposed Shares”) in Raf-Remat a limited liability company (“Raf-Remat”). The Disposed Shares in Raf-Remat have been transferred to Petro-Mechanika on the date of signing the agreement.

The Disposed Shares represent 96% of the registered capital of Raf-Remat, and 96% of the votes at the Shareholders’ General Meeting of Raf-Remat. As a result of the disposal, Rafineria Jedlicze will have no shares in the registered capital of Raf-Remat.

The nominal value of each Raf-Remat share amounts to PLN 100. The book value of the Disposed Shares in the Rafineria Jedlicze books amounted to PLN 1,687,900 as of 12 December 2007. The purchase price for the Disposed Shares, amounting to PLN 2,600,000, was paid by Petro-Mechanika in cash.

Additionally, on 12 December 2007, Rafineria Jedlicze sold to Petro-Mechanika tangible assets, which are used in Raf-Remat’s operations, for a total net price of PLN 1,050,000.

The main business activities of Rafineria Jedlicze are the regeneration and purchase of processed oils, the production and sale of heating oils, and the production of base oils based on the re-processing of used oils and the production of organic solvents.
The main business activities of Raf-Remat are the provision of various services such as the maintenance of machines and devices, equipment repairs, power engineering, and storage and supplies.
The main business activities of Petro-Mechanika concern, among other activities, undertaking technological projects, the production and maintenance of chemical apparatus, the maintenance and repair of rotating devices, the servicing and recovery of industrial fittings, and the maintenance and renovation of railway tracks and junctions.

PKN ORLEN owns approximately 75% of the registered capital of Rafineria Jedlicze and 75% of the total number of votes at the Shareholders’ General Meeting of Rafineria Jedlicze.
The Supervisory Board of Raf-Remat consists of 3 members, all of whom are Rafineria Jedlicze employees.
The Supervisory Board of Rafineria Jedlicze consists of 9 members, 7 of whom are PKN ORLEN employees, and one is a Rafneria Jedlicze employee.

As the Disposed Shares represent more that 20% of the registered capital of Raf-Remat, they are significant assets in accordance with par. 2 section 1 point 52 and section 5 of the Polish Regulation of the Minister of Finance dated 19 October 2005, on current and periodic information to be published by issuers of securities.