Acquisition of real property by a subsidiary

Polish Energy Partners Spółka Akcyjna (the “Company”) hereby informs that on June 30, 2009, “Grupa PEP – Biomasa Energetyczna Południe Sp. z o.o.” (“GPBE Płd”), a subsidiary of the Company, acquired from the municipality of Ząbkowice Śląskie real property with the  surface area of approx. 2.7 ha, located within the area of the Special Economic Zone in Wałbrzych [Wałbrzyska Specjalna Strefa Ekonomiczna]. GPBE Płd also obtained a permit to carry out its activities within the territory of the aforementioned Special Economic Zone.

The above-mentioned real property will be used by GPBE Płd to erect a straw pellet processing facility.  It is planned that the plant in Ząbkowice Śląskie will be commissioned in Q3 2010.  Pellets will be delivered as biomass to be used for energy generation by the group members of EDF Polska  pursuant to a long-term agreement, as described in detail in current report no. 50/2008, as well as to other large power plants in Poland.  Following the first plant in Sępólno Krajeńskie commissioned in 2009, the company will become the second member of PEP Group to manufacture the product.  The Company also plans to commission the third facility in the next two years’ time to supply pellets pursuant to a long-term contract to a large Polish, vertically integrated power plant.  In the mid-term perspective until 2012, the strategy of PEP SA provides for the Company to become the leader of biomass supply business for large Polish, vertically integrated power plants.