The Management Board of Grupa LOTOS S.A. reports that on June 28, 2007, Grupa LOTOS S.A. and Lurgi S.A. located in Krakow executed an EPC LSTK (Lump Sum Turn Key) contract for Engineering, Procurement and Construction, to build the Hydrogen Generation Unit under technology provided by Lurgi AG Frankfurt for the Grupa LOTOS S.A. Comprehensive Technical Upgrade Programme. The contract is to be executed over a period of 28 months. The scope of new installation is adjusted to the planned oil processing volume of 10.5 million tones. The Hydrogen Generation Unit will provide the hydrogen necessary for other processing units to produce clean fuels. The contract is executed as part of the development strategy of Grupa Kapitałowa LOTOS S.A. under the Comprehensive Technical Upgrade Programme. The Programme’s objective is to increase the throughput capacity of the Gdańsk refinery by approximately 75%, to 10.5 million tonnes of crude oil a year, with a higher conversion ratio. Legal basis for the report: Art. 56.1.1 of the Act on Offering – Inside Information