INTRODUCTION

Due to the regulatory requirement and in regard to UNIPETROL a.s. joining the PKN Orlen group, our company adopted reporting of economic results pursuant to the International Standards (IFRS). In the past, however, we always used to publish non-consolidated economic results of the parent company as well as of our most important subsidiaries for the first half of the year during this period. For this reason we are now presenting the results of the UNIPETROL, a.s. and of SPOLANA a.s. already compliant with the International standards and results of all other companies reported pursuant to the Czech Accounting Standards (CAS) as in the past. Consolidated financial statement reported pursuant to IFRS will be published in August 2005.

CHEMOPETROL, a.s.

The sales for proper goods and services grew in comparison with the first half of 2004 by 1,788 to CZK 14,222 million, which reflects the increase in raw material price. The first half results have been positively influenced by favorable petrochemical margins as a result of relatively high quotations of the key products. The company continued implementing saving measures and restructuring with the aim to reach maximum efficiency. Gross margins of Chemopetrol’s main commodities in the first half of 2005 were stable, with a slight drop in the close of the first half of 2005. The sales volumes corresponded to the first half of 2004 mainly due to a full usage of the newly installed plastics capacities. Chemopetrol, due to a stable demand was able to pass the raw material price to the price of products, although with some time delay. This was achieved through an increasing demand on relevant markets experienced since the first half of 2004. The area of operating profit saw a significant increase of performance. The operating profit improved from the original CZK 1,209 million (1st half of 2004) up to CZK 1,931, i.e. by CZK 722 million. Lower interest costs as compared to the last year’s first half (refinancing of bonds of the year 2000 worth CZK 4 billion through cheaper sources) and other cost reductions has likewise shown a positive influence. In the first half of the year 2005 Chemopetrol a.s. generated profit after taxation in the amount of CZK 1,573 million, which in comparison with the profit from the same period of the last year in the amount of CZK 578 million represents an improvement by CZK 995 million

KAUČUK, a.s.

The total sales of proper products and services reached the amount of CZK 5,551 million and thus represent a 14% increase as compared to the first half of 2004. The markets for Kaučuk’s key commodities have not fully recovered after the difficult years of 2002 and 2003, namely gross margins of polystyrene were under slight pressure due to strong competition. The increasing demand for automobile tires enabled to keep the synthetic rubber gross margins on acceptable levels. Despite of higher sales the company was not able to pass the increasing raw material prices to the prices of polystyrene, as for the synthetic rubber – the situation has been stabilized. The sales of compact polystyrenes registered in the first half saw a 28% year-on-year increase and amounted to CZK 1,334 million; the sales volume grew by 7%. The sales of foamable polystyrene reached CZK 1,170 million, i.e. 5% more than in the first half of the last year in the total evaluation thank to increase of sales volume. The total increase in sales of synthetic rubber by 25% up to CZK 1,573 million was due mainly to the achieved price levels; the amount sold was comparable with 2004.Both principal markets for KAUČUK’s products, polystyrenes as well as SBR, saw an increase in the raw material process, which in terms of SBR the company managed to fully pass to the selling price of production; as for polystyrenes, the margins were rather stagnant. As at 30. 6. 2005 KAUČUK, a.s. generated net profit of CZK 142 mil. as compared to CZK 118 million for the same period of the last year.

SPOLANA a.s.

The first half of 2005 has been relatively successful for both Spolana’s key commodities – PVC and caproplactam, with certain decrease in the last weeks, particularly in respect to PVC. Despite of the ongoing construction season the company was not able to pass the increase in price of the raw material (ethylene) to PVC. In terms of caprolactam a major role is played by the recession of textile industry in Czechia and in Europe, which creates the need to focus on caprolactam’s usage for industrial purposes. The first months of 2005 saw favorable sales of soda lye, PVC and fused caprolactam. In comparison with the 1st half of 2004 the sales were by half a billion CZK higher and reached the level of CZK 2.996 billion (according to the International as well as the Czech accounting standards). In spring and summer the prices of raw materials started increasing and negatively impacted the economic results of the company for the whole six months. In the first half of 2005 Spolana reported net profit (according to the International Accounting Standards) in the amount of CZK 162.4 million. In the first half of the year 2004 Spolana generated net profit CZK 49,6 million.

BENZINA, a.s.

There are two important factors that impact the most the results of the company in the first half of the year sales margin and decrease of the value of some chosen assets through the accounting adjustments. Regarding the sales margin the permanent trend towards to reducing of the unit margins is obvious. The volume sold is managed to be in the same level as last year. Due to analysis of effectiveness of Benzina´s assets there was a need to create provisions for additional filling station with the negative financial result. The level of these provisions is 225 mil. CZK. Additional CZK 23 M decreased the accounting value of other assets. Economic result of the company is strongly affected in the same way as in the previous years by the cost of debt (CZK –199 M in the first half of 2005). Financial costs of the company result from huge investment loans from the half of nineteenths, which are burdened with high fixed interest rate. Due to extremely strong competition in the fuel market the company is not allowed to involve such high financial costs in the prices for final consumers. The net loss of the company is 278 mil. CZK. The net loss of the half year of 2004 was CZK 262 million.

PARAMO, a.s.

Paramo is a refinery which - unlike Česká rafinérská - does not posses a deep crude oil processing and therefore its refinery margins develop differently. Paramo’s production is focused on so called dark products – oils, asphalt (bitumen) in respect of which the company was not able to pass the increasing oil prices to the price of products. The reason is that the substitution ceiling has been reached, when oils as well as asphalts may in certain cases be substituted by other products, which price is not dependent on the oil price (in terms of oils, the substitute is synthetic oil; in respect of asphalts, they can be replaced by concrete etc.). For the 1st half of 2005 the company reached record sales of goods (CZK 1,410 million) as well as of proper products and services (CZK 3,016 million). In a comparable period of 2004 the total turn-over was lower (CZK 3,570 million). The loss in the first half of 2005 in the amount of CZK 62.3 million was caused namely by high and fluctuating prices of oil but it was namely impacted by a monthly stoppage of main production facilities in Pardubice during the first quarter. The company’s economy was also negatively influenced by an asphalt basin breakdown as a result of which the sale of oxidized asphalts has been limited up till today. In the same period of the last year the company reported profit in the amount of CZK 100.3 million.

UNIPETROL RAFINÉRIE a.s.

In the first half of the year 2005 the company reached the revenues at the amount of 35,7 billion CZK. The refinery margins, after the initial weakening during the first months of the year, continued developing in a stable way during the remaining months of the first half of the year. The reason is the high price of oil and continuously strong demand for diesel fuels and heating oils. The company reached net profit in the amount of CZK 83 million. The main reason for weak company’s financial results – sales of product - was lower processing of oil (-69kt) caused by technological problems on the FCC unit of the Kralupy refinery of Česká rafinérská in the period from March till April. These influences were intensified by the need to re-appraise the first batch of oil in the Ingolstadt pipeline.

ČESKÁ RAFINÉRSKÁ, a.s.

Česká rafinérská operates its facilities in a so called reprocessing mode since August 2003 which means that the sales for Česklá rafinérská are generated through reprocessing fees collected from the crude oil processors – Agip, Conoco, Shell and Unipetrol Rafinérie. The turn-over for the first half of this year was CZK 4,419 million. In the same period of 2004 the company generated the turn-over of CZK 4,475 million. Česká rafinérská in the first half of 2005 processed more than 3.3 million tons of crude oil for its processing partners. It is by 21% more than during the first six months of the last year. The production of final products increased by more than 30%. As compared with the first six months of the last year the production of diesel oil, automotive gasoline, heating oils and bitumen increased. The production of aviation fuels, on the other hand, partly dropped. The company results were favorably influenced by the stabilization of the processing mode adopted by Česká refinérská in August 2003. Since then it operates as purely processing refinery, which means that its trading activities have been transferred to trading companies of its shareholders who purchase oil and sell finished products of Česká rafinérská on their balance sheet. Česká rafinérská in the first half of 2005 reached net profit of CZK 143,8 million. In the same period of 2004 the company reported profit of CZK 151 million.

UNIPETROL, a.s.

The parent company of the Unipetrol group reported in the given period a loss according to IFRS in the amount of CZK 189,5 million. The reported loss is lower than the result of the same period of the last year by CZK 48,4 million. The loss is affected by a rise of adjustment to the share in Benzina a.s.