An agreement with all the five trade union organisations

Under Art. 81, par.1, item 2 of the Law on Public Trading of Securities dated 21 August 1997 (Official Journal of Bills No 118, item 754 with the later amendments) The Management Board of Polski Koncern Naftowy S.A. informs that on 30 December 1999 the Management Board of PKN S.A. made an agreement with all the five trade union organisations operating within the structure of former Petrochemia Plock S.A. (i.e. NSZZ "Solidarnosc", Branzowy Zwiazek Zawodowy, NSZZ "Solidarnosc 80", Zwiazek Zawodowy Kadry Kierowniczej) on the basis of which the five organisations mentioned above expressed their acceptance for the Managment Board of PKN S.A. to proceed with restructuring of the Company in order to increase its operating efficiency.

If under the restructuring process there is a necessity of making some personnel redundant within 24 months counting from 1 December 1999, at the time of terminating the job agreement an employee will additionally receive :

• an equivalent of his / her 7 monthly salaries, provided that job agreement is cancelled within the first 12 months counting from 1 December 1999;
• an equivalent of his / her 4 monthly salaries, provided that job agreement is cancelled over the next 12 months.

On the basis of the agreement in question the Management Board of PKN S.A. received approval for proceeding with restructuring of the company on the same principles as accepted earlier in a similar agreement by NSZZ "Solidarnosc" of former CPN S.A.