Changes in negotiations for purchase of EDF assets

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”, the “Company”), with reference to current report no. 5/2017 dated January 27, 2017 on joint commencement of negotiations with EDF International SAS and EDF Investment II B.V. (jointly “EDF”) on purchase of EDF assets in Poland (the “Transaction”), discloses that on March 15, 2017 the Company and ENEA S.A., Energa S.A. and PGNiG Termika S.A. (the “Business Partners”) made following changes to the structure of the Transaction:

- withdrawal of PGNiG Termika S.A. from the Transaction;

- takeover by PGE of previously declared share of PGNiG Termika S.A. in the Transaction, resulting in increase of PGE’s share in the Transaction to 60%;

- shares of ENEA S.A. and Energa S.A. in the Transaction remain unchanged at 20% for each company.

The above changes in the Transaction’s structure require confirmation of no objection from EDF. At the same time, the Management Board of PGE discloses that the Company, together with the Business Partners, has informed EDF about the above mentioned changes.

In addition, the Management Board of PGE discloses that in case of realisation of the Transaction with 60% share of PGE, PGE assumes the full consolidation of the companies acquired from EDF.