The Executive Board of Grupa LOTOS SA hereby reports that on December 16th 2005 the Company concluded an agreement to acquire 14,639 shares in LOTOS Parafiny Sp. z o.o. from the following parties: a) Rafineria Jasło SA – 5,108 shares with an aggregate par value of PLN 5,108,000, representing 25.82% of the share capital of LOTOS Parafiny Sp. z o.o.; b) RC Parafiny – 9,003 shares with an aggregate par value of PLN 9,003,000, representing 45.51% of the share capital of LOTOS Parafiny Sp. z o.o.; c) Chemipetrol Sp. z o.o. - 528 shares with an aggregate par value of PLN 528,000, representing 2.67% of the share capital of LOTOS Parafiny Sp. z o.o.. Grupa LOTOS SA owns an 80.01% equity interest in Rafineria Jasło SA which exercises 100% control over Chemipetrol Sp. z o.o. RC Parafiny Sp. z o.o. is a wholly-owned subsidiary of Rafineria Czechowice SA in which, in turn, Grupa LOTOS SA holds 80.04% of the share capital. Following the transaction, Grupa LOTOS SA increased its shareholding in LOTOS Parafiny Sp. z o.o. from 26% to 100% of the shares conferring the rights to 100% of the total vote at the General Shareholders Meeting. The transaction totalled PLN 15,516,608.05 (i.e. PLN 1,059.95 per share). The abovementioned transaction is part of a programme intended to rearrange the structure of the LOTOS Group. The financial assets (shares) acquired in the transaction were deemed material as they represent over 20% of the share capital of LOTOS Parafiny Sp. z o.o. Legal basis for the publication of this report: Par. 5.1.1 of the Minister of Finance’s Regulation on current and interim reports to be published by issuers of securities, dated October 19th 2005.