Signing of significant contract

Thursday, 28 December, 2006

The Management Board of KGHM Polska Miedź S.A. announces that on 27 December 2006 a contract was signed between KGHM Polska Miedź S.A. and HSBC Bank USA N.A., London Branch for the sale of silver in 2007.
The estimated value of this contract is USD 165 453.9 thousand, i.e. PLN 482 844.2 thousand. This amount was estimated based on metal prices and the National Bank of Poland exchange rate from 27 December 2006. 
The total estimated value of contracts entered into between KGHM Polska Miedź S.A. and HSBC Bank USA N.A., London Branch over the last 12 months is PLN 1 012 515.2 thousand. The highest-value contract signed during this period is the above-mentioned contract. 
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)