Significant contract with KGHM Polish Copper Ltd.

Monday, 12 March, 2007

The Management Board of KGHM Polska Miedź S.A. announces that the total value of contracts entered into between KGHM Polska Miedź S.A. and KGHM Polish Copper Ltd. (a subsidiary of KGHM Polska Miedź S.A.) since the last current report, i.e. since 12 August 2006, is estimated at PLN 1 334 629.8 thousand. 
The highest-value contract signed during this period is the contract from 12 March 2007 for the sale of copper cathodes in 2007. The estimated value of this contract is USD 265 937.1 thousand (PLN 784 700.6 thousand). This amount was estimated based on the forecast copper price (using a forward curve) and on the National Bank of Poland exchange rate from 9 March 2007. This contract foresees contractual penalties for failure to execute payments on time. 

The criteria used for describing the contract as significant is that the total estimated value of the contracts exceeds 10% of the equity of KGHM Polska Miedź S.A. 

Legal basis: § 5 sec. 1 point 3 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)