Legal grounds: Paragraph 5.1.9 of the Ordinance of the Minister of Finance dated 19 October 2005 on current and periodical information provided by issuers of securities. The report: The Management Board of Powszechna Kasa Oszczędności Bank Polski S.A. (“PKO BP SA”) hereby informs that on 7 September 2007 PKO BP SA was informed that the Ukrainian State Registrator, Lvov City Council Executive Committee in the Frankovsky District of the city of Lvov on 5 September 2007 had registered capital increase of KREDOBANK SA with its seat in Lvov (“KREDOBANK”) of total value amounts UAH 176,750,000 (say: one hundred seventy six million seven hundred fifty thousand), equivalent to USD 35,000,000 (say: thirty five million). The newly issued shares in increased capital were acquired by PKO BP SA. PKO BP SA acquired 17,353,578,610 shares (say: seventeen billion three hundred fifty three million five hundred seventy eight thousand six hundred ten) in KREDOBANK’s capital of nominal value of UAH 0.01 each having a total nominal value of UAH 173,535,786.1 (say: one hundred seventy three million five hundred thirty five thousand seven hundred eighty six and 10/100 ) for USD 34,363,522 (say: thirty four million three hundred sixty three thousand five hundred twenty two) acquisition price which is equal to nominal value of the shares. After mentioned above registration the capital of KREDOBANK amounts to UAH 396,049,469.16 (say: three hundred ninety six million forty nine thousand four hundred sixty nine and 16/100 ) and is divided into 39,604,946,916 shares (say: thirty nine billion six hundred four million nine hundred forty six thousand nine hundred sixteen), with nominal value of UAH 0.01 each. PKO BP SA owns 38,884,728,030 shares (say: thirty eight billion eight hundred eighty four million seven hundred twenty eight thousand thirty) of KREDOBANK, constituting 98.1815% of the capital and entitling to 98.1815% of votes at the General Shareholders Meeting of KREDOBANK. The acquisition is an investment with long-term duration and was financed with PKO BP SA own funds. KREDOBANK is linked entity as defined in the Law of Accounting. The assets acquired are considered significant because the change in the amount of the KREDOBANK capital exceeds at one time equivalent of EUR 500,000 denominated in PLN.
