Legal grounds: Paragraph 5.1.3 of the Ordinance of the Minister of Finance on current and periodical information provided by issuers of securities dated 19 October, 2005. The report: The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna hereby informs that on 25 January, 2006 the Bank entered into a bank guarantee agreement with one of the PKO BP S.A. clients (the “Client”). The object of the bank guarantee agreement consists in granting, upon the Client’s request, a guarantee in favour of the Customs Office as an excise duty security required under Article 43.1 of the Excise Duty Act of 23 January, 2004, in the amount of PLN 309 million. The bank guarantee agreement is effective from 1.02.2006 until 31.01.2007 plus 90 days of period of responsibility. The bank guarantee agreement has been secured with a clause providing for offset of claims against the current account of the Client and his declaration of submission to execution under Art. 97 of the Banking Law. The interest rate applicable to the claim potentially arising due to a failure to discharge the liability resulting from the guarantee is based on WIBOR rate plus the Bank’s margin. The total value of the agreements between the Bank and the Client as at the date of execution of the abovementioned agreement is PLN 1,104.89 million. The execution of the above agreement satisfies the prerequisites for the requirement to disclose the entering by the Bank into a significant agreement, since the total value of consideration under the agreements with the Client meets the criteria referred to in Paragraph 2.1.51), in connection with Paragraph 2.2 of the Ordinance of the Minister of Finance on current and periodical information provided by issuers of securities dated 19 October, 2005. The agreement of the highest value entered into with the Client: The syndicated loan agreement, presented in current report nr 51/2005, is the agreement of the highest value among the agreements entered into between the Bank and the Client within the period of less than 12 months of the date of the above agreement, the total value of which meets the criteria referred to in Paragraph 2.1.51) of the ordinance of the Minister of Finance on current and periodical information provided by issuers of securities dated 19 October, 2005.
