Significant contract with Tele-Fonika Kable S.A.

The Management Board of KGHM Polska Miedź S.A. announces that on 8 January 2007 a contract was signed between KGHM Polska Miedź S.A. and Tele-Fonika Kable S.A. for the sale of 8 mm copper wire rod and oxygen-free copper rod Cu-OFE-8-Cl in 2007. 

The estimated value of this contract is from appx. USD 556 783.2 thousand (PLN 
1 658 545.9 thousand) to appx. USD 656 027.6 thousand (PLN 1 954 175.1 thousand). The amount was estimated based on the degree of options used, on the forecast copper price (using a forward curve from 5 January 2007) and on the National Bank of Poland exchange rate from 8 January 2007. 

The criteria used for describing the contract as significant is that the estimated value of the contract 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)