Acquisition of shares in newly-created company

Monday, 02 July, 2007

The Management Board of KGHM Polska Miedź S.A. announces that on 2 July 2007 KGHM Polska Miedź S.A. founded a company called KGHM LETIA Legnicki Park Technologiczny spółka akcyjna. 
The share capital of this newly-created entity amounts to PLN 20 000 thousand and is divided into 20 000 shares of series A of PLN 1 000 each. 

KGHM Polska Miedź S.A. acquired 18 990 shares in the newly-created company having a total nominal value of PLN 18 990 thousand, representing 94.95% of the share capital of this company and granting the same number of votes at the General Shareholders Meeting. The shares acquired by KGHM Polska Miedź S.A. will be paid for in cash in the following manner: 
1. PLN 9 495 thousand – within 14 days from the date of signing the Founder’s Act of the company, and 
2. PLN 9 495 thousand – by 30 September 2007. 
Acquisition of these shares will be financed by the internal funds of KGHM Polska Miedź S.A. 
The assets acquired are of a long term, equity investment nature. 

KGHM Polska Miedź S.A. became the owner of 94.95% of the share capital of the company KGHM LETIA Legnicki Park Technologiczny spółka akcyjna. 
KGHM LETIA Legnicki Park Technologiczny spółka akcyjna was created in order to ensure regional development through new investments, diversification of activities and by the transfer of technology. 
The criteria used for describing the assets as significant is that the shares acquired represent over 20% of the share capital of KGHM LETIA Legnicki Park Technologiczny spółka akcyjna. 

Legal basis: § 5 sec. 1 point 1 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)