PKN ORLEN request for Arbitration against Yukos International UK B.V. in connection with transaction of purchase of AB Mazeikiu Nafta shares.

Polski Koncern Naftowy ORLEN Spolka Akcyjna ("PKN ORLEN") hereby announces that on 15 July 2009 it submitted, in the Court of Arbitration at the International Chamber of Commerce, the Request for Arbitration against Yukos International UK B.V., headquartered in the Netherlands ("Yukos International") in connection with transaction of purchase of AB Mazeikiu Nafta shares. The arbitration proceeding will be running in London, in Arbitration Court composed of three arbiters, based on Rules of Arbitration Proceedings of the International Chamber of Commerce.

On the closing date of the purchase of AB Mazeikiu Nafta shares by PKN ORLEN, i.e. on 14 December 2006, Yukos International submitted statements regarding the actual legal and financial state of AB Mazeikiu Nafta. In accordance with the agreement on the sale of AB Mazeikiu Nafta shares, concluded on 26 May 2006 between PKN ORLEN as a purchaser and Yukos International as a seller, PKN ORLEN, on 3 December 2008 ,delivered to Yukos International., notice regarding PKN ORLEN's claims against Yukos International ("Notice regarding claims") due to differences between some Yukos International's statements made on 14 December 2006 with the actual state of AB Mazeikiu Nafta. In accordance with the abovementioned sale agreement of shares the maximum value of Yukos International's responsibility for differences in the questioned statements with the actual state amounts to USD 250 million. On the closing date of the transaction of purchase AB Mazeikiu Nafta shares this amount of money was deposited in the escrow account according to the Escrow Account Agreement dated 14 December 2006, as a part of the payment for AB Mazeikiu Nafta shares in order to secure the potential claims of PKN ORLEN towards Yukos International.

Simultaneously with the Notice regarding claims PKN ORLEN requested reimbursement of the amount of USD 250 million deposited in the escrow account. Due to refusal from Yukos International regarding obtaining by PKN ORLEN funds deposited in the escrow account, PKN ORLEN has been forced to request for arbitration. On the current stage of the case, PKN ORLEN's claims concern reimbursement of the amount of USD 250 million deposited in the escrow account. PKN ORLEN reserved a right to increase its demands or to make additional claims on further stage of the case.

PKN ORLEN S.A. owns 100% of AB Mazeikiu Nafta shares.

See also: Regulatory announcement no 110/2008 dated 3 December 2008 and Regulatory announcement no 2/2009 dated 6 January 2009.