Expiry of contract

Thursday, 06 January, 2005

The Management Board of KGHM Polska Miedź S.A. announces that as of 5 January 2005, together with receipt of payment for the final delivery of material, realisation of the contract for the supply of copper cathodes signed between KGHM Polska Miedź S.A. and Glencore International AG has been concluded. This contract was a continuation of the contract dated 15 July 2003 signed between KGHM Polska Miedź S.A. and Glencore International AG for the sale of copper cathodes in the years 2004-2008 (current report nr 40/2003 dated 16 July 2003). As a result, the Management Board of KGHM Polska Miedź S.A. considers both of these contracts as expired. The Company foresees no negative financial impact from the termination of these contracts - the termination of these contracts will not impact the turnover of KGHM Polska Miedź S.A.