The Management Board of KGHM Polska Miedź S.A. announces that on 24 January 2005 a contract was signed between KGHM Polska Miedź S.A. and Wieland Werke AG (Germany) for the sale of copper cathodes in the years 2006-2008. The value of this contract is estimated at USD 173 286.0 thousand (i.e. PLN 544 967.1 thousand). This amount was estimated based on copper quotations and the National Bank of Poland exchange rate from 21 January 2005. This is a general, framework agreement. This contract foresees contractual penalties for failure to execute payments on time.
The total value of contracts entered into over the last 12 months between KGHM Polska Miedź S.A. and Wieland Werke AG is estimated at around PLN 726 622.9 thousand.
The above contract is the highest-value contract.
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.