Conclusion of Significant Agreement between LOTOS Biopaliwa Sp. z o.o. and KOMAGRA Sp. z o.o.
Report no. 96/20052007-10-26

The Management Board of Grupa LOTOS S.A. hereby reports that on October 26th 2007 LOTOS Biopaliwa Sp. z o.o., a subsidiary wholly-owned by LOTOS Czechowice S.A., in which Grupa LOTOS S.A. holds 80,04% of shares, and KOMAGRA Sp. z o.o. of Warsaw concluded an agreement for the supplies of crude rapeseed oil to LOTOS Biopaliwa Sp. z o.o. The agreement is to secure the supplies of the basic raw material for the currently constructed unit for the production of fatty acid methyl esters (FAME) with expected annual capacity of 100 thousand tonnes. The agreement was concluded for five years and provides for contractual penalties of up to 5% of the agreement’s value. The payment of contractual penalties does not exclude the parties’ right to pursue a claim for payment of compensation in excess of the penalties. The value of the agreement throughout its term is estimated at approximately PLN 500,000 thousand. The agreement provides for an automatic termination without either party held liable if the trading activities specified in the agreement do not commence by the first quarter of 2008. Other terms and conditions of the agreement do not differ from the terms and conditions commonly applied in agreements of this type. The agreement is deemed significant as its estimated value exceeds 10% of Grupa LOTOS S.A.’s equity. Legal basis for the publication of this report: Par. 5.1.3 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities, dated October 19th 2005.