NOTIFICATION UNDER SECTION 120 (1) (E) OF CAPITAL MARKETS ACT

Situation after the failure at partial oxidation unit (POX) at UNIPETROL RPA

On account of the failure at the partial oxidation unit (POX), that occurred on Saturday 13 October 2007, several, already running units that are dependent on the hydrogen were shut down: Ammonia, Urea, OXO alcohols, Polyethylene and Polypropylene. At this moment, the damages are being mapped so that the repairs and restoration plan can be proposed.

The event will not have any influence on the planned start of the Steam Cracker (October 26). With start of this unit, the production of Polyethylene and Polypropylene will be enabled.

The starting of hydrogenation units of Ceska Rafinerska had to be suspended. However, we are taking measures that will enable the start of these units without being dependent on hydrogen supplies from POX unit. Still, some negative influence on Ceska Rafinerska full capacity utilization can be expected.

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15 Oct 2007

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