Registration of a change in share capital of the company PHP "Mercus " Sp. z o.o.

Friday, 03 March, 2006

The Management Board of KGHM Polska Miedź S.A. announces that on 23 February 2006 a change in share capital was registered in the Regional Court for Wrocław-Fabryczna in Wrocław, Section IX, Economic, of the National Court of Registrations by the company PHP "Mercus" Sp. z o.o. with its registered head office in Polkowice (a subsidiary of KGHM Polska Miedź S.A.). The share capital of PHP "Mercus" Sp. z o.o. was increased by PLN 4 258.6 thousand through the creation of 7 530 shares having a face value of PLN 565.55 each.

All of the new shares were acquired by KGHM Polska Miedź S.A. by a cash payment at their face value, i.e. PLN 565.55 each. These shares were paid for on 9 December 2005. The shares acquired represent 40.2% of the share capital of PHP "Mercus" Sp. z o.o. and grant the right to the same number of votes. The carrying value of these assets in the accounts of KGHM Polska Miedź S.A. based on their initial accounted value at their purchase cost is PLN 4 258.6 thousand.

Currently the share capital of PHP "Mercus" Sp. z o.o. amounts to PLN 10 733.0 thousand and is divided into 18 733 shares of PLN 565.55 each. The total number of votes arising from all created shares after registration of this change in share capital is 18 733. All of the shares (100%) are owned by KGHM Polska Miedź S.A.

These assets were acquired using the internal funds of KGHM Polska Miedź S.A.

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

The criteria used for describing the assets as significant is that the financial assets acquired by KGHM Polska Miedź S.A. exceeds 20% of the equity of PHP "Mercus" Sp. z o.o.

Legal basis: § 5 sec. 1 point 1 and 9 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)