AB Mazeikiu Nafta explains, that the difference between the consolidated net loss of AB Mazeikiu Nafta for the 1st quarter of 2007 as announced on 15 May 2007 and AB Mazeikiu Nafta group result announced by PKN ORLEN mainly is due to the difference in the value of AB Mazeikiu Nafta group assets as reflected in AB Mazeikiu Nafta's and PKN ORLEN books.

Assets of AB Mazeikiu Nafta group reflected in AB Mazeikiu Nafta books are accounted at their historical acquisition value, while PKN ORLEN uses the fair value of the assets. The fair value of AB Mazeikiu Nafta in PKN ORLEN‘s books is materially different due to the fact that the acquisition of AB Mazeikiu Nafta was accounted under the purchase method in accordance with IFRS 3 ‘Business combinations’.

This results in the higher level of depreciation and amortization in PKN ORLEN’s books as the value of the assets of AB Mazeikiu Nafta is much higher. The difference in the financial statements of AB Mazeikiu Nafta and PKN ORLEN will be visible due to this fact also in the future.

This difference makes AB Mazeikiu Nafta result for the 1st quarter of 2007 much better than AB Mazeikiu Nafta effect on consolidated statement of PKN ORLEN for the 1st quarter of 2007.