PKN ORLEN rating maintained

Fitch Ratings maintained its rating for PKN ORLEN, which means that the credit risk related to the Company's debt securities remains at a stable low level. The change of the outlook from stable to negative follows primarily from Fitch Ratings analysts' concerns as to PKN ORLEN's intended investment projects, which relate to the planned consolidation, both in Poland (Rafineria Gdańska) and in the region (the service stations in northern Germany, joint venture with Basell) and to the necessity to restructure its retail network. Execution of those ambitious projects in a post-recession macroeconomic environment, with ever-shrinking demand for fuel products, is undoubtedly a great challenge. To meet the challenge, PKN ORLEN needs to strengthen internally and to achieve higher efficiency of its activities. PKN ORLEN's Management Board took necessary actions to this end, by launching two strategic projects: value based management (VBM) and a comprehensive reduction of operating costs, to be executed with the support of leading consulting companies (Andersen Business Consulting with Wood Mackenzie and McKinsey, respectively). The first results of these projects should be visible before the end of this year, and their full effect is expected to be seen in 2005. PKN ORLEN will be able to announce more accurate estimates of the impact of these projects on PKN ORLEN's financial standing following completion of the diagnostic stage (June - July 2003). At the same time, the Company consistently pursues its policy of the Capital Group restructuring, transferring non-core assets into cash (LG Petro, NOM). The PKN ORLEN's Management Board is convinced that the execution of the comprehensive internal strengthening programme will allow the Company to achieve its strategic goals without losing its creditworthiness.

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PKN ORLEN SA