Execution of an agreement for LPG sale by Grupa LOTOS S.A. to LOTOS Paliwa Sp. z o.o. in place of a terminated contract between Grupa LOTOS SA and LOTOS Gaz S.A.
Report no. 44/20092009-12-15

The Management Board of Grupa LOTOS S.A. hereby reports that on December 14th 2009 Grupa LOTOS S.A. and LOTOS Paliwa Sp. z o.o. (wholly owned by Grupa LOTOS S.A.) signed an agreement for propane-butane (LPG) sale to LOTOS Paliwa Sp. z o.o.

The agreement was executed for a specified period from December  16th 2009 to December 31st 2019, and its estimated value is PLN 1.5 bn.
The agreement provides for contractual penalties for failure to perform the agreement by either party and the penalties  estimated maximum within contract’s validity period is around PLN 112,500 thousand. The agreement is considered significant as its estimated value exceeds 10% of Grupa LOTOS S.A.’s equity.

At the same time the Management Board of Grupa LOTOS S.A. informs of terminating on December 15th 2009 of a significant  agreement for  sale of LPG from Grupa LOTOS S.A. to LOTOS Gaz S.A. (formerly LOTOS Mazowsze S.A, a company 100% controlled by Grupa LOTOS S.A.) , signed on August 1st 2004.

The reason for both termination of the above contract and execution of the new agreement with LOTOS Paliwa Sp. z o.o. results from the process of reorganising the LOTOS Group’s trade operations. Any financial consequences of termination in the consolidated group dimension are expected.

The legal basis for the publication of this Current Report is Par. 5.1.3 and Par. 5.1.5 of the Minister of Finance’s Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009.