Information about change of mode of bankruptcy proceedings of a subsidiary

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”, “Company”) advises that it has received information that on May 16, 2011 the Regional Court in Rzeszów, 5th Commercial Division Liquidation and Reparation unit, according to Article 16 of The Bankruptcy and Reorganization Act, dated on February 28, 2003 (Dz. U. of 2009, No. 175, item 1361, as amended), issued a decision to change the mode of proceedings of the bankruptcy proceedings of Mega Sp. z o.o. with the registered office in Miłocin (“Subsidiary”, “Bankrupt”) from liquidation of the Bankrupt's assets to proceedings with the arrangement possibility.

The decision was issued after Subsidiary’s motion had been taken into account in which Bankrupt had substantiated that, as a result of the proceedings the creditors will be secured to a higher extent, than they were secured after conduction of the bankruptcy proceedings included liquidation of the Bankrupt’s assets.

PGE Energia Odnawialna S.A., a subsidiary of is a minority shareholder of the Subsidiary, holding 14.72% of shares, however it is a dominant company in relation to the Subsidiary as a result of the right to appoint and recall the majority of the management board of the Subsidiary. PGE Energia Odnawialna S.A. holds actual control over the Subsidiary. The dominancy relation emerged as a result of the amendments to the Articles of Partnership and registration of these amendments by the register court on March 3, 2011 i.e. at the time when the liquidation proceedings including liquidation of the Bankrupt’s assets were conducted at the Subsidiary.

According to the Court decision Bankrupt will manage the assets. Moreover, the Court recalled Mr Adam Sadecki as a bankruptcy trustee and called Mr Adam Sadecki as a court supervisor.

The motion for bankruptcy was filed with the Regional Court in Rzeszów, 5th Commercial Division, Liquidation and Reparation unit on February 3, 2011, and on March 8, 2011 the above mentioned Court issued a decision on bankruptcy including the liquidation of the Bankrupt’s assets. At the time of the decision, mentioned in the previous sentence, the Bankrupt was not a subsidiary of PGE.

Legal ground: § 5 section 1 point 24 and 30 point 5 of the Regulation of the Minister of Finance dated February 19, 2009 on current and periodic information published by issuers of securities and on conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state. (Dziennik Ustaw of 2009, No. 33, item 259, as amended).