The Management Board of Grupa LOTOS S.A. reports that on May 19th 2008 the Management Board of Petrobaltic S.A. resolved to commence the procedure of registration of the share capital increase and acquisition of shares in LOTOS Exploration and Production Norge AS (to date fully controlled by Grupa LOTOS S.A.) by Petrobaltic S.A. (in which Grupa LOTOS S.A. holds 69% of shares). The 32 million shares acquired by Petrobaltic S.A., whose aggregate par value amounts to NOK 32 million, are equal and indivisible and represent 80% of the increased share capital of E&P Norge AS. Petrobaltic S.A. became a shareholder of LOTOS E&P Norge AS by purchasing for cash 80% of shares in the Norwegian company’s increased share capital. The purchase price of the shares, whose aggregate par value amounted to NOK 40 million, was NOK 32 million (PLN 13,782,400, translated at the mid exchange rate for NOK quoted by the National Bank of Poland for May 19th 2008) and was covered with Petrobaltic’s internally-generated funds. LOTOS E&P Norge’s core business consists in exploration for and production of crude oil on the Norwegian Continental Shelf. The company’s share capital was increased by way of issue of new shares to provide it with additional capital needed for further expansion of its business activities. As the leading company of the LOTOS Group in the field of exploration and production, Petrobaltic S.A. became an investor in E&P Norge AS. Petrobaltic S.A. and LOTOS Exploration and Production Norge AS are members of the LOTOS Group. Prior to the transaction, Grupa LOTOS S.A. held 69% of the share capital of Petrobaltic S.A. and was the sole shareholder of LOTOS Exploration and Production Norge AS. Following the registration of the share capital increase, Grupa LOTOS S.A. and Petrobaltic S.A. will hold respectively 20% and 80% of the shares in LOTOS Exploration and Production Norge AS. The financial assets to which the transaction relates are considered significant based on the fact that they represent more than 20% of the shares in LOTOS E&P Norge AS. Legal basis for the publication of this report: Par. 5.1.1 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities, dated October 19th 2005.