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Inside information

09-08-2007  

Information regarding the impairment for the company KAUČUK, a.s. during the first half of 2007

With regard to information that have appeared in the market, we now state more precisely the amount of the one-off item connected to the back "deconsolidation" of the company KAUČUK, a.s. in the UNIPETROL, a.s. books for the period of January – June 2007.

UNIPETROL Group EBITDA was lowered in 1Q 2007 by reason of this impairment by CZK 449m. The item will reach CZK 439m in 2Q 2007.

With reference to the inside information published on 30 January 2007, UNIPETROL, a.s. as seller and FIRMA CHEMICZNA DWORY S.A. as purchaser executed the Share Purchase Agreement on sale of 100% shares of KAUČUK, a.s. UNIPETROL, a.s. also announced that closing of the transaction would be subject to satisfaction of several conditions precedent by both Unipetrol and Dwory. These conditions include, among others, the obtaining of all necessary consents from the relevant antimonopoly authorities and formation of a joint-venture between Unipetrol Group and Kaučuk for the purposes of the construction and operation of a new butadiene unit, performance of an environmental audit concerning the land owned by Unipetrol and used by Kaučuk and execution of commercial contracts between Unipetrol Group and Kaučuk on the basis of the already agreed principles which will assure a further smooth operation of Unipetrol Group.

Following the inside information of UNIPETROL, a.s. dated 30 January 2007 regarding the execution of the Share Purchase Agreement concerning the sale of 100% shares in KAUČUK, a.s. between Unipetrol, as seller and FIRMA CHEMICZNA DWORY S.A. as purchaser, Unipetrol announced on July 19, 2007, that the closing of the sale of 100% shares in Kaučuk took place.  The subject-matter of the Share Purchase Agreement was the transfer of 100% shares (i.e., 6,236,000 ordinary certificated registered shares) in Kaučuk for the purchase price of EUR 195,000,000.

Prague, 9 August 2007

UNIPETROL, a.s.

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