ORLEN International Exploration & Production has signed an agreement on the purchase of shares in Odin Energi Latvija

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that on 9 April 2008 its subsidiary, ORLEN International Exploration & Production Company BV, headquartered in Amsterdam, Netherlands (“ORLEN International Exploration & Production”), and Odin Energi A/S headquartered in Hellerup, Denmark (“Odin Energi”) signed an agreement (“the Agreement”) relating to the sale of shares in Odin Energi Latvija (“Odin Energi Latvija”).

As a result of signing the Agreement ORLEN International Exploration & Production will purchase 500 shares in Odin Energi Latvija, with the nominal value of LVL 5 of each (i.e. approximately PLN 24.81 based on the average LVL/PLN exchange rate as of 9 April 2008, as stated by the National Bank of Poland). The purchase shares represent 50% of the registered capital of Odin Energi Latvija, and 50% of the votes at the Shareholders’ General Meeting of Odin Energi Latvija. The Agreement has been signed simultaneously with the agreement on purchase of the rest 50% of shares in Odin Energi Latvija by the PKN ORLEN partner, Kuwait Energy Company. Kuwait Energy Company has purchased the shares through its subsidiary Kuwait Energy Netherlands Corporation.

The purchase price for the purchase shares amounts to USD 950 000 (i.e. approximately PLN 2 089 715 based on the average USD/PLN exchange rate as of 9 April 2008, as stated by the National Bank of Poland) and will be paid from ORLEN International Exploration & Production’s own resources. The purchased shares will be transferred to ORLEN International Exploration & Production on the date of payment of the purchase price.

The book value of the purchased shares in the ORLEN International Exploration & Production books will be equal to their purchase price.

The investment of ORLEN International Exploration & Production in the Odin Energi Latvija shares is of a long term nature. The purchase of Odin Energi Latvija shares gives ORLEN International Exploration & Production the right to a 45% share in the concession for searching and exploration of crude oil and natural gas in the Latvian economic Baltic Sea area.

The main business activities of Odin Energi Latvija involve searching, diagnostic and explorative performance for hydrocarbons.
The main business activities of ORLEN International Exploration & Production involve, amongst others, the extraction of crude oil, the extraction of petroleum gas, geological exploration and diagnostic and explorative performance.

PKN ORLEN owns 100% of the registered capital of ORLEN International Exploration & Production and 100% of the total number of votes at the Shareholders’ General Meeting of ORLEN International Exploration & Production.

No connections exist between PKN ORLEN, managing and supervising persons of PKN ORLEN and Odin Energi Latvija.

As the purchase shares represent 50% of the registered capital of Odin Energi Latvija, 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.