Registration of a change in the share capital of Telefonia DIALOG S.A.

Wednesday, 09 April, 2008
Report no. 21/2008

The Management Board of KGHM Polska Miedź S.A. announces that on 4 April 2008 a change in share capital was registered at the Regional Court for Wrocław-Fabryczna in Wrocław, Section VI (Economic) of the National Court Register for Telefonia DIALOG S.A. with its registered head office in Wrocław (a subsidiary of KGHM Polska Miedź S.A.). The share capital of Telefonia DIALOG S.A. was reduced from PLN 1 959 800.0 thousand to PLN 489 950.0 thousand, i.e. by PLN 1 469 850.0 thousand through the decrease in the face value of all existing shares of the company from PLN 100.00 to PLN 25.00 per share.

The purpose of the decrease in share capital was to cover the loss from prior years incurred by the company and to change the face value of the shares in connection with the planned IPO of the company’s shares and their planned listing on a regulated market operated by the Warsaw Stock Exchange. 
PLN 913 150.3 thousand of the amount obtained from the decrease in share capital of Telefonia DIALOG S.A. was used to cover the loss from prior years presented in the balance sheet of the company at 31 December 2006, while the remaining PLN 556 699.7 thousand will be transferred to reserve capital.
This decrease in capital was carried out without any payout to the company’s shareholders.
The General Shareholders’ Meeting of Telefonia DIALOG S.A. decided to change the designation of all existing preference registered shares, series A to K, for ordinary bearer shares, series A.

The share capital of Telefonia DIALOG S.A. after registration amounts to PLN 489 950.0 thousand and is divided into 19 598 000 shares of PLN 25 each.
The total number of votes arising from all issued shares after registration of this change in share capital is 19 598 000.
KGHM Polska Miedź S.A. owns 100% of the share capital of Telefonia DIALOG S.A. 


Legal basis: § 5 sec. 1 point 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 No. 209, item 1744).