Acquisition of shares in a newly-created company

Wednesday, 08 June, 2005

The Management Board of KGHM Polska Miedź S.A. announces that on 28 April 2005 the Regional Court for Wrocław-Fabryczna in Wrocław, Section IX (Economic) of the National Court of Registration entered the following company into the Commercial Register: Energetyka Spółka Specjalnego Przeznaczenia sp. z o.o. with its registered head office in Lubin. The share capital of this newly-created entity amounts to PLN 50,000.00 and is divided into 500 shares of PLN 100 each.

Energetyka sp. z o.o. (a subsidiary of KGHM Polska Miedź S.A.) acquired 499 shares having a total nominal value of PLN 49 900 in the newly-created company Energetyka Spółka Specjalnego Przeznaczenia sp. z o.o., representing 99.8% of the share capital of this company and granting the same number of votes at the General Shareholders Meeting.

The shares acquired by Energetyka sp. z o.o. were covered by cash in the amount of PLN 49 900. Acquisition of these shares was financed by the internal funds of Energetyka sp. z o.o.

The assets acquired are of a long term, equity investment nature.

KGHM Polska Miedź S.A. owns 100 % of the shares of Energetyka sp. z o.o. Energetyka sp. z o.o. became the owner of 99.8% of the shares of Energetyka Spółka Specjalnego Przeznaczenia sp. z o.o.

Energetyka Spółka Specjalnego Przeznaczenia sp. z o.o. was created in order to carry out a project involving the construction of two gas-steam units in the region of Polkowice and Głogów.

The criteria used for describing the assets as significant is that the shares acquired represent over 20% of the share capital of Energetyka Spółka Specjalnego Przeznaczenia sp. z o.o.