Agreements between PKN ORLEN and PKP and PKN ORLEN and DEC

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 ORLEN S.A. wishes to inform that on June 10, 2000 two agreements were put into effect:

the agreement between PKN ORLEN S.A. and Przedsiêbiorstwo Pañstwowe Polskie Koleje Pañstwowe (PKP - National Railway Operator) Dyrekcja Kolejowych Przewozow CARGO (Railway Dispatch CARGO), upon which PKN ORLEN S.A. was granted from PKP a discount on PKP cargo tariff for realised internal fuel transportation;

indefinite co-operation agreement between PKN ORLEN S.A. and Dyrekcja Eksploatacji Cystern Sp. z o.o (DEC), which comprehensively and in a long-term perspective regulates relations between PKN ORLEN S.A. and DEC Sp. z o.o. The agreement also defines principles and costs regarding transportation of PKN ORLEN’s products with the use of DEC’s railway stock.

Both agreements and inclusive co-operation regulations are important achievement in cost cutting and rationalisation in PKN ORLEN S.A. They guarantee complete coverage of rail transportation requirements for PKN ORLEN’s products. They also guarantee advantageous position for PKN ORLEN S.A. as a best-condition transportation provider for its products both in Poland and abroad.

The agreements in questions are next step on the way to optimisation and development of PKN ORLEN’s products transportation model and related costs cutting due to transportation scale and market position.