10 May 2005

ZA "Puławy" SA – results after the 3rd quarter of financial year 2004/2005

Net profit generated by Zakłady Azotowe Puławy totalled after 3 quarters of the financial year 2004/2005 (closed on June 30th) nearly PLN 152 million. It is more than a 70% year-to-year increase. Meanwhile Company's revenues increased nearly 18% to exceed PLN 1.4 billion.

ZA "Puławy" is the largest (in terms of sales volume) and the most profitable business in the fertiliser-chemical industry in Poland.

Last financial year (closed on June 30th 2004) at nearly 16% growth, the Company generated PLN 1.68 billion in revenue. After 3 quarters of the current financial year revenues increased nearly 18%, year-to-year, to reach PLN 1.44 billion.

Along with revenue growth ZA Puławy regularly improve profitability at all stages of operations. It proves that the selected strategy is correct and illustrates the Company's ability to invest in profitable products with a future and to control operating expenses.

After three quarters of 2004/2005 ZA Puławy generated net profit of PLN 151.6 million (a similar amount was generated for the entire year 2003/2004), which means 70.5% improvement of the result as compared to analogous period of the previous year.

(PLN milions)	Afret 3Q 2004/2005	After 3Q 2003/2004	2003/2004	2002/2003
Sales revenues	1 436	1 221	1 683	1 447
EBITDA (operating income before amortisation)   EBITDA margin	311,0     21,6%	248,9     20,3%	338,3     20,1%	162,4     11,2%
Operating profit	221,2	178,9	242,9	64,2
Net profit   Net marigin	151,6   10,6%	88,9   7,3%	152,3   9,0%	18,6   1,2%
Equity   ROE (return on equity)	746,4   20,3%	547,5   16,2%	614,8   24,8%	466,1   4,0%

ZA Puławy is the most profitable business in Poland in the fertiliser-chemical industry (it is responsible for nearly half of EBITDA and net profit - zysk netto of all companies in the Major Chemical Synthesis sector).

In terms of profitability the Company is also a leader globally. Comparison of net profitability is presented below: