Material agreement concluded by a subsidiary

The Executive Board of Polish Energy Partners Spółka Akcyjna (hereinafter referred to as “the Company”) hereby informs than on 28 July 2005, the Company and its subsidiary, Saturn Management Spółka z ograniczoną odpowiedzialnością i wspólnicy, Spółka Komandytowa (hereinafter referred to as “SM”) and Mondi Packaging Paper Świecie S.A. (hereinafter referred to as “Mondi”), concluded an Annex to Contract for Provision of Services and Mutual Co-operation of the Parties, made on 29 April 2002 and an Annex to the General Contract made on 29 April 2002 (hereinafter referred to as “the Annexes).

Pursuant to the Annexes SM committed to implement an investment project (hereinafter referred to as “the Jupiter Project”) in a heat and power plant owned by SM, which covers the replacement of an existing turbine set with new steam, extraction and back-pressure turbine set. Moreover, the annexes specify the method of calculation of part of fees as well as principles of mutual settlements made between Mondi and SM. The value of the Jupiter Project amounts to app. PLN 40 million.

The annexes have been acknowledged as material due to the fact that their value exceeds 10% of Company’s equity.

The aforementioned contracts have been specified in the Prospectus of the Company.

Legal basis: § 5 section 1 item 3 RO – conclusion or change of a material agreement

Signatures:

Anna Kwarcińska – Member of the Executive Board

Wojciech Cetnarski – Vice President of the Executive Board