Contract with Tele-Fonika Kable S.A.

The Management Board of KGHM Polska Miedź S.A. announces that on 27 December 2005 a contract was signed between KGHM Polska Miedź S.A. and Tele-Fonika Kable S.A. for the sale of 8 mm copper wire rod in 2006. The estimated value of revenues from sales in 2006 may vary within a range of appx. USD 336 385.0 thousand, i.e. appx. PLN 1 086 792.7 thousand to appx. USD 420 481.3 thousand, i.e. appx. PLN 1 358 490.9 thousand. 

The value of revenues from sales was calculated based on copper prices on the London Metal Exchange dated 23 December 2005 and on PLN/USD exchange rates from the National Bank of Poland dated 27 December 2005, and on the degree to which options are used.

The criteria used for describing the contract as significant is that the estimated value of the contract exceeds 10% of the equity of KGHM Polska Miedź S.A.

Legal basis: § 5 sec. 1 point 3 of the Decree of the Minister of Finance dated 19 October 2005 regarding current and periodic information published by issuers of securities (Journal of Laws from 2005 Nr 209, item 1744)