Finishing of three cases in the Court of Arbitration between PKN ORLEN and Agrofert Holding

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") announces that it has received from the Court of Arbitration at the Economic Chamber of the Czech Republic and the Agrarian Chamber of the Czech Republic in Prague a notice regarding the judgments of three cases which were running in the court due to an action from Agrofert Holding a.s., headquartered in Prague (“Agrofert Holding”) against PKN ORLEN.

As a result of consideration of the first case (citation submitted by Agrofert Holding regarding the payment of the agreement penalty of EUR 77 266 500, about which PKN ORLEN was informed on 25 January 2006) PKN ORLEN is obliged to pay, by 3 July 2009, the agreement penalty of EUR 77 266 500 plus interest of EUR 28,3 million plus court fees. The amount awarded to Agrofert Holding is at the level of provision created for that purpose by PKN ORLEN and will have no material impact on PKN ORLEN operating result for the second quarter 2009.

Agrofert Holding’s claims in the second case (citation submitted by Agrofert Holding regarding the payment of the agreement penalty of EUR 77 266 500, about which PKN ORLEN was informed on 9 May 2006) were wholly dismissed. Both parties were obliged to cover their own court fees, while Agrofert Holding incurred expenses of court registration .

Agrofert Holding’s claims in the third case (citation submitted by Agrofert Holding regarding the payment of the agreement penalty of CZK 409 102 494, i.e. EUR 15 807 231 based on the CZK/PLN and EUR/PLN average exchange rates as of 30 June 2009, stated by the National Bank of Poland, about which PKN ORLEN was informed on 6 July 2006) were wholly dismissed and Agrofert Holding was obliged to cover the court fees incurred by PKN ORLEN.

Proceedings in the case of the fourth statement of the claim submitted by Agrofert Holding regarding the payment of compensation for damages caused by unfair competition, the illegal smearing of Agrofert Holding’s reputation, and for the failure to perform according to the agreements signed by PKN ORLEN and Agrofert Holding in the years 2003-2004, about which PKN ORLEN was informed on 13 December 2006, continues.

See also: regulatory announcements: no. 82/2006 dated 13 December 2006, no. 46/2006 dated 6 July 2006, no. 27/2006 dated 10 May 2006, no. 12/2006 dated 20 February 2006, no. 8/2006 dated 25 January 2006, no. 41/2006 dated 4 June 2004 and no. 85/2003 dated 20 November 2003.