Puławy, February 4th 2008

Forecasts of Record Profits Following the Very Successful Second Quarter of the Financial Year 2007/2008

ZA Puławy achieved outstanding results in the second quarter of the financial year 2007/2008. Its net profit rose more than fourfold when compared with the corresponding period of the previous financial year, and reached PLN 94.7m, while the sales revenue amounted to PLN 634.8m, nearly 18% up year on year. Accordingly, the Company has increased up its financial forecasts for the current financial year.

The Q2 sales of fertiliser and non-fertiliser products amounted to PLN 592.5m and were higher by over 19% than in the previous reporting period. Given the more favourable export prices, despite the appreciation of the Polish złoty against foreign currencies, the Company increased the share of exports; the revenue on exports rose by nearly PLN 58m over the respective figure for the second quarter of the financial year 2006/2007.

“Although the first two quarters of a financial year are typically weaker, our performance was excellent. Therefore, we have revised up our financial forecasts for the current financial year – the net profit should reach a record high, in excess of PLN 224m, with revenue exceeding PLN 2.4bn”, said Mr Lech Kliza, Member of the Management Board, coordinating the Board’s operations.

In the fertiliser product segment, in the second quarter of the financial year 2007/2008 the Company’s sales revenue grew by 30%, to PLN 390.1m, on the back of higher prices of all fertiliser products. The value of sales of urea and UAN went up significantly (by over 43% and 37%, respectively). The sales of fertiliser products increased slightly also in terms of volume.