Prague, 9th of November 2006 - Despite the two negative One-offs mentioned below, the strong operational performance of UNIPETROL confirms the Group’s potential. “We intend to further enhance our underlying results, which have been strong thus far, by developing our core businesses, which are refining, petrochemicals, and retail, while at the same time implementing a more efficient corporate structure,” says François Vleugels, the company’s CEO. Other factors that contributed to positive 3Q 2006 results were the good overall condition of the Czech economy and synergies stemming from the Partnership program with PKN ORLEN.

Financial Highlights

The first One-off item relates to SPOLANA transaction. As on October 27, 2006 the Share Purchase Agreement on sale of shares of SPOLANA a.s., was executed it was necessary to adjust the SPOLANA presentation in the consolidated financial statements in period ended September 30, 2006. Therefore we have presented SPOLANA’s assets as Assets held for sale. In accordance with IFRS the disposal group is measured at the lower of their carrying amount and fair value less cost to sell. As of September 30, 2006 the impairment loss of CZK 387,201 thousand has been recognized in Consolidated Income Statement. The second One-off refers to the withdrawal of a CZK 324m investment allowance provided in 2005 to CHEMOPETROL. CHEMOPETROL decided not utilize the incentives connected to the tax statements for 2005 and has already taken steps to claim the tax back in the form of a tax return.

The improvement in underlying operations goes across all subsidiaries. Sales grew by more than 8%, both year on year and quarter on quarter. The volume of processed crude oil in the three UNIPETROL’s refineries rose to 3.17m tons in 9M 2006, i.e. 5 % above the same period last year. Crude oil processed in UNIPETROL RAFINERIE was up by 8%. Utilization rates in CESKA RAFINERSKA and in PARAMO reached 85% , which is 4 percentage points above the same period last year.

Companies Breakdown – Quarterly Net Results

Chemopetrol nine months revenues reached CZK 25.8bn, representing a 10% year on year growth. The company’s strong revenues from sales were driven by higher prices of petrochemical and agrochemical products. However, the negative One-off item lowers Chemopetrol’s both 3Q and 9M net result below last year’s levels.

Benzina revenues for the first three quarters of 2006 are 25% higher than in the same period last year, as a result of restructuralization and operational improvements. Benzina’s EBIT for nine months of 2006 shows the positive number of 129 m CZK (for 3Q 2006 of 86 m CZK) in contrast to the nine months 2005 EBIT of -33 m CZK Higher fuels sales were supported by successful marketing activities. New Benzina retail strategy announced at the end of October this year introduces changes in the Company leading to the significant efficiency and operation oriented improvements.

Despite decreased refinery margins during 3Q 2006, Unipetrol Rafinerie generated a net profit of CZK 706m in this period as compared to CZK 102m in 3Q 05. The 8% growth in sales was driven mainly by increased sales of fuel; 18% higher than the volume sold in the same period last year. Company revenues from sales were higher than last year also due to higher prices of refinery products.

The operations of Paramo in the first nine months of 2006 provided better financial results than in the previous year. This results partly from improved margins on Paramo’s main products – lubricants, asphalts and diesel.

Kaucuk high overall sales in 3Q 2006 were reached thanks to high sales of synthetic rubber, due to major customers having finished their shutdowns, and high demand for expandable polystyrene - caused by this year’s long construction season.

Spolana – The effect of decreased Caprolactam production, the result of a flood crisis at the beginning of the year, was minimized by the shortening of a planned shutdown in July. The planned sodium hydroxide and PVC unit shutdowns were postponed from August to October in order to coordinate the shutdowns with CHEMOPETROL. The Caprolactam market situation was characterized by strong demand leading to full capacity utilization.

UNIPETROL is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005, UNIPETROL became the part of PKN ORLEN Group, Central Europe's largest down stream Oil Company. UNIPETROL focus is mainly on crude oil processing, distribution of fuels and petrochemical production. In all these areas, UNIPETROL is a major representative in the Czech Republic and an important player in the Central European market. In 2005, UNIPETROL revenues and net profit reached CZK 81 bn, and CZK 3,4 bn respectively.

Contact: 
Michaela Lagronová 
Spokesperson 
Unipetrol, a.s. 

Mobile: + 420 602 304 708 
E-mail: michaela.lagronova@unipetrol.cz

1 Factual sale of assets and liabilities of SPOLANA a.s., would be recognized in 4Q 2006, when shares will be exchanged for cash. The final impact in the Consolidated Income Statement will be calculated on the base of actual net assets of SPOLANA a.s., on the date of sale that is expected till the end of November 2006. The Consolidated Income Statement will be practically affected by the difference between net assets of SPOLANA a.s. on the date of sale and net assets as at September 30, 2006, the reason is the impairment loss recognized in 3Q 2006.