Since December, the operated capacity of the ethylene unit has been stabilized at about 512 thousand tonnes per year. As the unit is only being operated, thanks to technical measures, without the coldbox equipment, it is impossible to rule out the temporary reductions in capacity until the installation of the repaired coldbox. The capacity for the production of benzene has been reduced markedly, as it is currently operated at a level of less than 80% of the annual capacity of 210 thousand tonnes. We expect this temporary situation to continue for approximately 5 months.

The current operating mode of the ethylene unit assumes the full operation of the polyolefin production until the coldbox installation.

During the installation of the repaired coldbox in May 2008, we expect to shut down the ethylene unit for approximately 14 days. The polypropylene unit will be shut down during the installation of the repaired coldbox and the polyethylene production capacity will be reduced. The shutdown has been coordinated with our customers. Litvinov refinery will be operated without any interruption. After the coldbox installation the production of benzene will ramp up to the full capacity planned for 2008. The current developments regarding the ethylene unit have no lasting impact on the long-term performance of the UNIPETROL Group.

We are in the midst of analyzing the financial impact of the situation regarding the ethylene unit on UNIPETROL Group.

In Prague on 28 December 2007

UNIPETROL, a.s.