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Rules for Conversion of Registered Shares into Bearer Shares
Report no. 96/20052006-01-09

The Executive Board of Grupa LOTOS SA hereby presents the rules adopted by the Company for the conversion of registered shares into bearer shares. Rules for conversion of registered shares into bearer shares, adopted by Grupa LOTOS SA: 1. A holder of registered shares in Grupa LOTOS SA (“the Shareholder”) should collect a confirmation of the acquisition of registered shares from the Issue Sponsor. 2. The Shareholder planning to convert the registered shares into bearer shares should hold an investment account with a brokerage house, unless the Shareholder intends to leave the bearer shares in the Issue Sponsor’s register. 3. Conversion of registered shares into bearer shares (“the conversion”) will be made further to a written request by the shareholder. The request, along with an original confirmation of the share acquisition, should be submitted by the shareholder in person at the brokerage house maintaining the shareholder’s investment account. If the shareholder does not have an investment account, the request for share conversion will be submitted to the Issue Sponsor. 4. Upon submission of the conversion request by the holder of the registered shares deposited in the investment account, the brokerage house sends the request directly to the Office of the Management Board of Grupa LOTOS SA. If the Shareholder holds an investment account with a brokerage house, but the registered shares held by the Shareholder are entered in the Issue Sponsor’s register (i.e. they are not deposited in the investment account), the brokerage house sends a set of the requests to the Issue Sponsor. Based on the sets sent by brokerage houses, the Sponsor sends a combined set of the requests to the Office of the Management Board of Grupa LOTOS SA. 5. Upon a review of the request, the Management Board of Grupa LOTOS SA will adopt a resolution approving the conversion and assimilation of the shares. In 2006, the Management Board will adopt resolutions on share conversions on a quarterly basis, i.e. on the first Monday of March, June, September and December, or at the first meeting of the Management Board held after any of these dates. After 2006, the Management Board will adopt resolutions on share conversions on a semi-annual basis, i.e. on the first Monday of March and September, or at the first meeting of the Management Board held after either of these dates. 6. In special cases, in particular if submitted conversion requests concern over 500,000 shares, the Management Board may adopt the relevant resolution at another date. 7. Conversion requests should be submitted at least 15 days prior to the dates when resolutions on conversion of shares are to be adopted. 8. The cost of conversion will be borne by the Company. 9. To convert the shares, the Management Board or its proxy will submit the required documents concerning the conversion of registered shares into bearer shares to the National Depository of Securities (Polish NDS) and the Warsaw Stock Exchange (WSE) not later than 10 business days prior to the planned date of conversion in accordance with the schedule established by the Polish NDS. 10. Following the conversion of the shares specified in the request to the Polish NDS and the WSE, if the shares remain in the Issue Sponsor’s register, the Shareholder should visit a Customer Service Point of the Issue Sponsor to collect a confirmation of acquisition of the bearer shares. Legal basis for the publication of this report: Art. 56.1.1 of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies of July 29th 2005.