The Management Board of Grupa LOTOS S.A. reports that yesterday it was informed that on January 20th 2009 the Management Board of Petrobaltic S.A. (controlled by Grupa LOTOS S.A. in 69%) decided to commence the procedure to register another increase in the share capital of LOTOS Exploration and Production Norge AS (LOTOS E&P Norge AS) and the acquisition of the company shares by Petrobaltic S.A.

The share capital of LOTOS E&P Norge AS was increased from NOK 190m (or PLN 89.6m when translated using the mid-market exchange rate for NOK quoted by the National Bank of Poland for January 20th 2009) to NOK 430m (or PLN 202.7m when translated using the mid-market exchange rate for NOK quoted by the National Bank of Poland for January 20th 2009). The new shares created as part of the share capital increase, with the total par value of NOK 240m (or PLN 113.1m when translated using the mid-market exchange rate for NOK quoted by the National Bank of Poland for January 20th 2009) are equal, indivisible and are treated by Petrobaltic S.A. as a long-term investment.

Petrobaltic S.A. covered the 240 million new shares in LOTOS E&P Norge AS with cash, paying a price equal to the par value of the shares, i.e. NOK 240m (or PLN 113.1m when translated using the mid-market exchange rate for NOK quoted by the National Bank of Poland for January 20th 2009) and financed the acquisition with its internally-generated funds.

Petrobaltic S.A. and LOTOS E&P Norge AS are members of the LOTOS Group. The core business of LOTOS E&P Norge AS consists in crude oil exploration and production on the Norwegian Continental Shelf. The company was recapitalised by way of issue of new shares to provide for further development of its business.

Petrobaltic S.A. holds 100% of the shares in LOTOS E&P Norge AS and is the company’s investor as LOTOS Group’s leading member in the oil exploration and production business.

The financial assets acquired as part of the transaction are considered significant based on the fact that the acquired shares represent more than 20% of the shares in LOTOS E&P Norge AS.

The legal basis for the publication of this report is 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.