The Management Board of KGHM Polska Miedź S.A., based on information received on 8 November 2005 from a subsidiary, hereby announces that, pursuant to § 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, on 4 November 2005 a contract was signed between Pol-Miedź Trans Spółka z o.o. (a subsidiary of KGHM Polska Miedź S.A.) and the company Lotos Paliwa Spółka z o.o. for the sale and delivery of fuel to Pol-Miedź Trans Spółka z o.o.
This contract was entered into for an indefinite period of time. During the next 5 years of its being in force, the estimated value of this contract using current prices amounts to appx. PLN 1 500 000 thousand. Any failure by the seller to execute this contract entitles the buyer to demand the payment of contractual penalties - PLN 20 for each cubic meter of fuel for each initiated 24 hour period of delay in delivery, and, notwithstanding the above, a penalty of PLN 20 for each cubic meter of the unrealised portion of the delivery, if delivery of the product was made in an amount of less than 85% of the amount of the order.
More than half of the fuel purchased from Lotos Paliwa Spółka z o.o. will be used to supply the divisions of KGHM Polska Miedź S.A.
The criteria used for describing the contract as significant is that it exceeds 10% of the value of the equity of KGHM Polska Miedź S.A.