The Management Board of Grupa LOTOS S.A. reports that on June 21st 2007, Grupa LOTOS S.A. and Technip Italy S.p.A. as the main contractor, along with: Technip KTI S.p.A., Technip Polska Sp. z o.o., KTI Poland S.A. executed an EPC LSTK contract for Engineering, Procurement and Construction, to build the MHC (Mild Hydrockracking Unit), ARU (Amine Regeneration Unit), SWS (Sour Water Stripper) and SRU/TGTU (Sulphur Recovery Unit/Tail Gas Treatment Unit) for the Grupa LOTOS S.A. Comprehensive Technical Upgrade Programme. The scope of MHC, ARU, SWS and SRU/TGTU is adjusted to the planned crude oil throughput capacity of 10.5 million tonnes. The contract is to be executed over a period of 42 months. The contract value is 2,208,050,600.00 PLN. The agreement is considered significant as its estimated value exceeds 10% of the equity of Grupa LOTOS S.A. The Contract provides for payment of liquidated damages to Grupa LOTOS S.A for delay in performance and failure to meet the agreed parameters of the constructed units. The overall liability towards Grupa LOTOS S.A. may not exceed 8% of the contract value. The Contract will become effective upon satisfaction of the following conditions precedent: the receipt by Grupa LOTOS S.A. of the relevant performance bonds, issuance of a letter of credit by Grupa LOTOS S.A.'s Bank and the assignment to Technip Italy S.p.A. of the agreements for delivery of certain eqipment executed earlier by Grupa LOTOS S.A. The contract is under execution as part of the development strategy of the LOTOS Group which provides for the construction of production units under the Comprehensive Technical Upgrade Programme. The Programme’s objective is to increase the throughput capacity of the Gdańsk refinery by approximately 75%, to 10.5 million tonnes of crude oil a year, with a higher conversion ratio. Legal basis for the publication of this report: Par. 5.1.3 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities, dated October 19th 2005.