Termination of agreement between PKN ORLEN and KD Petrotrade FZE

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that on 7 July 2009, an Agreement with KD Petrotrade FZE (“Petrotrade”), headquartered in the United Arab Emirates, for crude oil deliveries via the “Przyjazn” pipeline to PKN ORLEN for 2.4 million tonnes of REBCO crude oil annually (“the Agreement”) has been terminated. The Agreement was in force from 1 July 2007 and was intended to be in force until 30 June 2010 with the option to be extended for a further two years or more.

The Agreement has been terminated (according to the certain contract provisions) due to failure of some contract obligations by Petrotrade. It causes that, in accordance with the Agreement, the parties have no mutual financial claims.

The termination of the Agreement with Petrotrade will not cause the break in deliveries of crude oil to PKN ORLEN. PKN ORLEN assured current deliveries of crude oil to the Production Plant in Plock through spot contracts with Souz Petrolium Establishment headquartered in Liechtenstein. These actions will not cause any increase of costs of crude oil purchase.

See also: regulatory announcement no 46/2007 dated 18 July 2007.