Registration of a change in share capital of the company Energetyka sp. z o.o.

Wednesday, 03 August, 2005

The Management Board of KGHM Polska Miedź S.A. announces that on 26 July 2005 a change in share capital was registered in the Regional Court for Wrocław-Fabryczna in Wrocław, Section IX (Economic) of the National Court of Registration for the company "Energetyka" sp. z o.o. with its registered head office in Lubin (a subsidiary of KGHM Polska Miedź S.A.). The share capital of "Energetyka" sp. z o.o. was increased by PLN 65 942.3 thousand through the creation of 659 423 shares having a nominal value of PLN 100 per share. All of the shares in the increased share capital were acquired by KGHM Polska Miedź S.A., covering them with a contribution in kind of PLN 65 851.2 thousand and cash of PLN 91.1 thousand.

The assets transferred as a contribution in kind represent an organised part of the company KGHM Polska Miedź S.A. - the Water Management Division. The book value of these assets in the accounts of the Company is PLN 54 573.8 thousand.

The acquisition of these assets was financed by the internal funds of KGHM Polska Miedź S.A. The assets acquired are of a long term, equity investment nature.

The share capital of Energetyka sp. z o.o. after registration amounts to PLN 191 049.3 thousand and is divided into 1 910 493 shares of PLN 100 per share.

100% of the shares are owned by KGHM Polska Miedź S.A.

The total number of votes arising from all issued shares after this change in share capital is 1 910 493.

 "Energetyka" sp. z o.o. as at 1 July 2005 assumed ownership of the Water Management Division, being an organised part of the company KGHM Polska Miedź S.A..

The criteria used for describing the assets as significant is that the financial assets acquired by KGHM Polska Miedź S.A. represent over 20% of the share capital of "Energetyka" sp. z o.o.