Result of tests for impairment of tangible fixed assets.

With reference to the current report no. 53/2017 dated December 22, 2017, the Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”, the “Company”) informs that major works regarding tests for impairment of tangible fixed assets in accordance with the IAS 36 have been finished.

Results of conducted tests indicate the impairment loss of balance sheet value of tangible fixed assets of Conventional Generation segment and Renewable Generation segment amounting in total to approximately PLN 807 million.

Assets impairment involves in particular Szczecin Power Plant (PLN 473 million) and selected wind assets (PLN 110 million) and is related to changes in legal environment regarding support scheme for renewable generation.

As a result appropriate impairment loss will be recognized in Consolidated Financial Statements of PGE for the year 2017.

According to the adopted accounting policy of PGE, impairment losses of tangible fixed assets do not influence reported EBITDA.

Disclaimer: The above value is estimated, unaudited and may change. The ultimate result of impairment tests and value of impairment will be presented in Consolidated Financial Statements of PGE for the year 2017 on March 6, 2018.