Signing of significant contract

Tuesday, 11 January, 2005

The Management Board of KGHM Polska Miedź S.A. announces that on 10 January 2005 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 in 2005. The estimated value of revenues from sales in 2005 may vary within a range of appx. USD 267 040.0 thousand, i.e. appx. PLN 828 812.0 thousand to appx. USD 333 800.0 thousand, i.e. appx. PLN 1 036 015.0 thousand.

The value of revenues was calculated based on current copper prices on the London Metal Exchange and on current PLN/USD exchange rates from the National Bank of Poland, and on the degree to which options are used.

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.