The Management Board of Grupa LOTOS S.A. hereby reports that on March 26th 2007 LOTOS Mazowsze S.A. (a wholly-owned subsidiary of Grupa LOTOS S.A.) concluded a conditional preliminary agreement on the purchase from natural persons of 34,500 shares in KRAK-GAZ Sp. z o.o. The conclusion of the final purchase agreement is conditional upon obtaining the approval of the Polish Anti-Trust and Consumer Protection Authority for the business concentration effected through acquisition by LOTOS Mazowsze S.A. of control over KRAK-GAZ Sp. z o.o. by purchasing its shares. The acquired shares, whose aggregate par value amounts to PLN 34,500 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 in KRAK-GAZ Sp. z o.o., 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 natural 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 controlling 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.