22 April 2005

The prospectus is submitted

On 22 April Zakłady Azotowe “Puławy” SA submitted the prospectus to the Polish Securities and Exchange Commission. Before the Extraordinary General Meeting of Shareholders had made the decision regarding the increase of the  share capital.

- We are the biggest company in the fertilizer and chemical industry in Poland and a recognized supplier on the world’s markets. We act on the growing markets of melamine, caprolactam and fertilizers. Our investment plans include, among others, introduction of new products, increasing of production capacities, expenses for improving of efectiveness. The value of investments, which we plan to make within the next 3 years, is estimated at about PLN 700m. We plan to finance them, in the comparable proportions, from the cash generated by the Company and from  proceeds obtained from the public offering – says Zygmunt Kwiatkowski, the  President of ZA “Puławy” .

Before submission of the prospectus, the Extraordinary General Meeting of Shareholders of Zakłady Azotowe “Puławy” had made a resolution regarding the increase of the  share capital. New shares will be offered for sale  in the public offering, with exclusion of the right of acquire for the present shareholder. The prospectus is planned to be published in June 2005 and in the same time the Company intends to be ready to conduct the public offering. The final  timetable of the offering will depend on, among others, the proceeding before the Polish Securities and Exchange Commission as well as the decision of the Minister of the Treasury.
At present the  share capital of ZA “Puławy” is divided into 13.6 m shares. The Treasury is the owner of 100 % of shares.
ZAP shares are offered by CA IB Securities.