Acquisition of Shares in KRAK GAZ Sp. z o.o. by LOTOS Mazowsze S.A. – Final Agreement
Report no. 96/20052007-07-10

With reference to Current Report No. 12/2007, the Management Board of Grupa LOTOS S.A. hereby reports that in connection with the approval granted by the Polish Anti-Trust and Consumer Protection Authority for the business concentration to be effected through the acquisition by LOTOS Mazowsze S.A. of control over KRAK-GAZ Sp. z o.o. by purchasing its shares, on July 9th 2007 LOTOS Mazowsze S.A. (wholly-owned subsidiary of Grupa LOTOS S.A.) signed the final share purchase agreement concerning 34,500 shares in KRAK-GAZ Sp. z o.o. The acquired shares, whose aggregate par value amounts to PLN 3,450 thousand, are equal and indivisible, and represent 100% of KRAK-GAZ Sp. z o.o.’s share capital. LOTOS Mazowsze S.A. treats the acquired shareholding as a long-term investment. The purchase price for the shares, amounting to PLN 16,367.9 thousand, was covered with internally-generated funds of LOTOS Mazowsze S.A. There exist no links between Grupa LOTOS S.A. or its management and supervisory staff and the persons disposing of the shares. The core business of KRAK-GAZ Sp. z o.o. consists in the wholesale and retail distribution of LPG. The acquisition of the interest in the company by LOTOS Mazowsze S.A. is part of Grupa LOTOS S.A.’s strategy aimed at increasing its share in the domestic LPG market. The financial assets involved in the transaction are deemed significant since they represent more than 20% of shares in KRAK-GAZ Sp. z o.o. Legal basis for the publication of this report: 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.