Change of recommendation of the Management Board respecting the appropriation of profit for 2008

Friday, 05 June, 2009
Report no. 22/2009

The Management Board of KGHM Polska Miedź S.A. announces that on 5 June 2009 it passed a resolution altering the proposal of the Management Board of the Company to the Ordinary General Meeting of KGHM Polska Miedź S.A. regarding the appropriation of profit for financial year 2008, dated 17 April 2009 (current report no. 12/2009 on the same day).

The above-mentioned decision results from an improvement in macroeconomic factors, the current financial position of the Company and, with respect to the Budget assumptions, the more favorable forecast Company results for 2009.

In accordance with the current projection of results for 2009, planned Company profit increased from PLN 488 million to PLN 1 906 million. Given the recommended dividend level, cash and cash equivalents at the end of 2009 will be similar to the level set out in the Company Budget as approved by the Supervisory Board.

The Management Board of the Company will propose to the Ordinary General Meeting payout of a dividend at a level consistent with the Dividend Policy published in current report no. 5/2007 from 17 January 2007, i.e. in the amount of PLN 1 432 000 000, or PLN 7.16 per share, along with the following dividend-related dates:
- right to dividend date: 16 July 2009,
- dividend payment date: 6 August 2009,

The final decision respecting the appropriation of Company profit for financial year 2008 and setting the right to dividend date and dividend payment date will be made by the Ordinary General Meeting of KGHM Polska Miedź S.A. convened for 16 June 2009.

Regardless of the final form of the resolution of the General Meeting of the Company with respect to profit appropriation, the Management Board will continue to effectively implement the strategy, including realisation of investment tasks while maintaining the financial stability of the Company.

Legal basis: § 38 sec. 1 point 7 of the Decree of the Minister of Finance dated 19 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (Journal of Laws from 2009 No. 33, item 259)