"PGNiG Energia SA is an important element of the Capital Group's value building. I am happy that the shareholders of PGNiG SA share the optimism of the Company's management board regarding the future of gas-based power generation and the cogeneration of heat and electricity in Poland. In our opinion, the power industry will be the main source of demand for gas in the coming decade. The new company will allow us to take part in the changes that await the Polish power industry and to use these processes in the interest of our Group," said Michał Szubski, president of PGNiG SA's management board.

The main goals of the new company for 2010 are the consolidation of the PGNiG Capital Group's power generation assets, the launch of the first power outsourcing projects for industrial clients and the optimisation of electricity purchasing for PGNiG SA. The company is also to begin trading on the wholesale electricity market and work on PGNiG's first, pilot biogas plant.

An important task for PGNiG Energia SA will be to support PGNiG SA in preparing several large power generation projects. These consist mainly of the construction of electric and cogeneration plants fuelled with natural gas and of negotiating terms of collaboration with power industry partners. The most advanced projects include the construction of a steam-gas unit in Stalowa Wola (in collaboration with the Tauron Group) and the construction of a cogeneration plant in Gdańsk (in collaboration with Energa and the Lotos Group).

The share capital of PGNiG Energia SA, which will have its registered office in Warsaw, will amount to PLN 5,000,000 (five million zlotys), and will be divided into 50,000 ordinary shares with a nominal value of PLN 100 each. All the shares in the new company will be taken up by PGNiG SA.

Joanna Zakrzewska

PGNiG SA Press Officer