The Management Board of Grupa LOTOS S.A. reports that on Sunday, owing to heavy rainfall, the waters of the Wisłoka river in the Podkarpacie region flooded some of the units of LOTOS Jasło S.A. (80.01%-owned by Grupa LOTOS S.A.). No threat to the natural environment has been identified in connection with the incident. The plant’s pumping station was flooded, which necessitated a shut-down of the DRW crude processing unit and resulted in an interruption to oil processing in the Jasło refinery. Likewise, the bitumen production unit of LOTOS Asfalt and the plastics processing plant were stopped. The new fuel terminal was also shut down, and its function will be temporarily performed by the old loading facility. There have been no interruptions to the sale of products or customer service. The stopped units will be re-launched in approximately three days, and financial losses will be estimated after the damage caused by the flooding is remedied. The production units are insured. The break in production at LOTOS Jasło will not have a significant bearing on the consolidated financial results of the LOTOS Group for Q2 2006. Legal basis for the publication of this report: Art. 56.1.1 of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies .