The Management Board of Grupa LOTOS SA hereby reports that as at 08.09.2005 it signed a contract concerning granting of a loan in the amount of PLN 2,500 thousand to its subsidiary by the name of LOTOS Parafiny (Grupa LOTOS SA directly holds 26% of the share capital of LOTOS Parafiny Sp. z o.o. and indirectly controls the company through its subsidiaries.) The target value of loans to be granted by the end of January 2006 amounts to PLN 9,000 thousand. The loan is granted on financial terms that do not differ from the terms offered on the market. As provided for in the contract, the loan shall be fully repaid by the end of 2008. The loan shall be allocated for financing the investment in candle and grave light production facility located in Czechowice which was indicated in the prospectus of Grupa LOTOS SA as one of investment targets for the entire Grupa LOTOS SA capital group in 2005, and which ensues from the Agreement on financing project realisation in LOTOS Parafiny company. The total value of the project shall not exceed PLN 14,100 thousand. The decision that LOTOS Parafiny Sp. z o.o. should start investment realisation was made with a view to taking over additional margin in the paraffin product manufacturing value chain and ensuring long-term economic efficiency of the Company. The project concerning the construction of the candle and grave light production facility is one of the elements of the restructuring process in the southern refineries being members of the Grupa LOTOS SA capital group. Transaction value in PLN thousand: 2,500.00