Judgement of the Arbitration Tribunal regarding dispute between PGE and Alpiq

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE") discloses, that it has received information, that the Arbitration Tribunal of the International Arbitral Centre of the Austrian Federal Economic Chamber in Vienna (the "Arbitration Court") on 12 September 2012 issued a final judgment (the "Judgment") in the case: Alpiq Ltd. ("Alpiq", previously Atel Holding AG) v. PGE (the "Proceedings"). Based on the Judgment, Alpiq was awarded the reimbursement by PGE of:

1) EUR 43,203,986.60;

2) interest on EUR 4,982,971.60 equal to 9.88% from 11 March to 30 June 2009 and 8.38% from 1 July 2009 to the Judgment date; and

3) interest on EUR 38,221,015 equal to 8.38% from 23 November 2011 to the Judgment date.

In its Judgment, the Arbitration Court held that the electricity supply agreement between PGE and Alpiq dated 28 October 1997 (hereinafter: the "Agreement") expired on 28 February 2009. Based on the Judgment, PGE was also awarded the reimbursement by Alpiq of the legal representation, witness and expert costs of EUR 1,374,948.86 and the reimbursement of the costs of the proceeding before the Arbitration Tribunal of EUR 87,673.37. The claims which Alpiq finally asserted against PGE in the Proceedings amounted to EUR 162,957,311 along with interest and the costs of the Proceedings (the amount of Alpiq's claim was modified several times).Estimated claim value was provisioned in previous years in the amount of EUR 95,252,617.43 (including the main amount of EUR 79,119,328.53). Settlement of arbitration proceeding and compensation settlement will result in partially use of the provision. The remaining part of provision value will be resolved and recognized as other operating income in the statement of comprehensive income. PGE informed about a course of the Proceeding in its periodical reports. The Management Board of PGE is going to analyse the Judgment and the remedies which could potentially be used to challenge it.

Legal background: Art. 56 clause 1 point 1 of the Act on Public Offering and Conditions of Introducing Financial Instruments to an Organized Trading System, and on Public Companies dated 29 July 2005 (consolidated text: Journal of Laws of 2009, No. 185, Item 1439, as amended).