The Executive Board of Grupa LOTOS SA hereby reports that on October 27th 2005 LOTOS Paliwa Sp. z o.o. (wholly-owned by Grupa LOTOS SA) and Rafineria Jasło SA ( Grupa LOTOS SA owns 80.01% of its shares) entered into a significant agreement. Under the agreement, concluded for an indefinite term, Rafineria Jasło SA will sell liquid fuels to LOTOS Paliwa Sp. z o.o. The agreement’s five-year value is estimated at PLN 1,950,000 thousand. The agreement provides for contractual penalties of PLN 20 per cubic meter of fuel which has not been delivered by Rafineria Jasło SA or collected by LOTOS Paliwa Sp. z o.o. The payment of the penalty does not exclude the right to claim compensation in excess of the penalty amount. The agreement was made as part of initiatives aimed at reorganising the LOTOS Group’s trading activities. The agreement is deemed significant due to its estimated value representing more than 10% of the equity of Grupa LOTOS SA. Legal basis for the publication of this report: Par. 5.1.3 of the Minister of Finance’s Regulation on current and interim information to be published by issuers of securities, dated October 19th 2005.