The Executive Board of Grupa LOTOS SA hereby reports that on October 18th 2005 LOTOS Mazowsze SA and LOTOS Paliwa Sp. z o.o. (subsidiary undertakings wholly-owned by Grupa LOTOS SA) entered into a significant agreement on sale of liquid fuels to LOTOS Mazowsze SA. The agreement was concluded for an indefinite term. Its five-year value is estimated at PLN 540,151 thousand. Should at least 90% of the ordered quantity of fuels not be delivered or collected, the parties to the agreement are obliged to pay a contractual penalty of PLN 20 per each cubic meter of the difference between the volume actually purchased or intended to be delivered, and 90% of the ordered volume. The terms of the agreement do not differ from standard market terms. The agreement is deemed significant as its value represents more than 10% of the equity of Grupa LOTOS SA. The value of the agreement is PLN 540,151 thousand