Transferal of ownership of shares of Walcownia Metali Nieżelaznych Sp. z o.o

Thursday, 01 February, 2007

The Management Board of KGHM Polska Miedź S.A. announces that on 31 January 2007 an agreement was signed between KGHM Ecoren S.A. (a direct subsidiary of KGHM Polska Miedź S.A.) and Walcownia Metali „Łabędy” S.A. (a direct subsidiary of KGHM Ecoren S.A.) for the transferal of ownership to Walcownia Metali „Łabędy” S.A. of 32 430 shares of Walcownia Metali Nieżelaznych Sp. z o.o. (WMN Sp. z o.o.). The face value of these assets is PLN 25 944.0 thousand. 

The shares disposed represent 60.11% of the share capital and of the number of votes at the General Shareholders Meeting of WMN Sp. z o.o. The sale price of these shares amounts to PLN 30 936.1 thousand, and is equal to their carrying value in the accounts of KGHM Ecoren S.A. at 30 September 2006. 

Following the transfer of ownership of these shares, KGHM Ecoren S.A. does not own any shares in this company, while the commitment of Walownia Metali „Łabędy” S.A. in the share capital and in the number of votes at the General Shareholders Meeting of WMN Sp. z o.o. amounts to 94.88 %. 

The shares of WMN sp. z o.o. transfered to Walcownia Metali „Łabędy” S.A. represent a contribution in kind by KGHM Ecoren S.A. to cover the payment of 3 093 612 shares with a face value and purchase price of PLN 10 each in the increased share capital of Walcownia Metali „Łabędy” S.A. (this change in share capital of Walcownia Metali „Łabędy” S.A. has not yet been registered). 

The criteria used for describing these assets as significant is that the value of the financial assets disposed of/acquired exceeds 20% of the equity of WMN Sp. z o.o. 

Legal basis: § 5 sec. 1 point 1 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)