Submitting of an initial non-binding offer for acquisition of shares in Fortum Group’s assets located in Poland, Estonia, Latvia and Lithuania by a consortium with participation of PGE

The Management Board of PGE Polska Grupa Energetyczna S.A. (the “PGE”, the “Company”) discloses that on October 27, 2020, an investment consortium, a part of which is PGE (the “Consortium”), has submitted an initial, non—binding offer to purchase district heating and cooling businesses in Estonia, Lithuania, Latvia and Poland from Fortum Holding B.V. (the “Transaction”).

The participants of the Consortium are: PGE, Polskie Górnictwo Naftowe i Gazownictwo S.A., PFR Inwestycje FIZ (Closed-end investment fund) which is managed by Polski Fundusz Rozwoju S.A. (Polish Development Fund) and IFM Investors Pty Ltd.

The consortium will continue to work together towards the submission of a binding offer.

Transaction’s target are Fortum Holding B.V.’s subsidiaries, which carry out activities mainly related to heat generation, distribution and sale as well as electricity generation in Estonia, Lithuania, Latvia and Poland.

The acquisition of the shares in the Fortum Group’s assets is in line with PGE Group’s Strategy until 2030 announced on October 19, 2020 (current report no. 29/2020 dated October 19, 2020).