Puławy, January 22nd 2008

P r e s s  R e l e a s e

Pursuant to the resolution of the Management Board of the Warsaw Stock Exchange, on February 4th 2008 over two million employee shares in Zakłady Azotowe Puławy S.A. will be introduced to trading.  

Approximately six thousand Company employees (two thousand current employees and four thousand former employees or their heirs) will be able to trade the shares allotted to them free of charge by the State Treasury pursuant to the Commercialisation and Privatisation Act and a relevant decision issued by the Minister of Finance. Out of the total of 2,040,000 shares, 2,038,364 shares were allotted to the entitled employees. As at the date of adoption of the resolution by the Management Board of the WSE, the closing price of one share in ZA Puławy amounted to PLN 84.10. The entitled employees acquired blocks of shares including between 12 and 447 shares, depending on the length of service.

In 2007, the return on ZA Puławy shares was 106.2%, which means that holders of the Company shares doubled their profit. It is one of the highest ratios among mid-cap companies listed on the WSE in the previous year. 

It is hard to say now what the price of ZA Puławy shares will be at the beginning of February and for how long the downward trend on the WSE will continue. The admission of the employee shares to trading will increase the liquidity of ZA Puławy shares, which will enhance their attractiveness, especially in the eyes of institutional investors, says Lech Kliza, coordinator of the work of the Management Board of ZA Puławy S.A. He also added: Consistent pursuit of our development strategy will additionally improve the Company’s value, which bodes well for future listings.