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Inside information

09-05-2007  

EXECUTION OF AGREEMENT ON CONSTRUCTION OF NEW BUTADIENE UNIT BETWEEN BUTADIEN KRALUPY A.S. AND CHEMOPROJEKT, A.S.

On 9 May 2007, the newly established company Butadien Kralupy a.s., with its registered office at Kralupy nad Vltavou, O.Wichterleho 810, District Mělník, Postal Code: 278 01, Id. No: 278 93 995, the sole shareholder of which is KAUČUK, a.s. („Kaučuk") and which was incorporated upon its registration in the Commercial Register on 27 April 2007 ("Butadien Kralupy"), as the owner, and Chemoprojekt, a.s., with its registered office at Prague 10, Třebohostická 14, Postal Code: 100 31, Id. No: 452 73 383, as the contractor, executed the Agreement on Construction of New Butadiene Unit (the „Agreement") for the total price amounting to CZK 1,147,364,000 as well as other contractual documentation in connection with the Agreement.

The Agreement was executed in connection with implementation of sale of 100% shares of Kaučuk, owned by UNIPETROL, a.s. („Unipetrol"), to FIRMA CHEMICZNA DWORY S.A., with its registered office at ul. Chemików 1, 32-600 Oświęcim, Poland, KRS No.: 38981 ("Dwory") under the share purchase agreement entered into on 30 January 2007 between Unipetrol as seller and Dwory as buyer (the "Share Purchase Agreement"), and within the meaning of the Agreement on Cooperation in Connection with Construction and Operation of New Butadiene Unit, executed by and among Unipetrol, Dwory, CHEMOPETROL, a.s. and Kaučuk on 30 January 2007 (the "Cooperation Agreement").

The Cooperation Agreement provides that a 51% stake in Butadien Kralupy shall be transferred from Kaučuk to the Unipetrol group and the price paid prior to the closing of the share sale under the Share Purchase Agreement.

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