Current Report of 05.12.2006

Legal basis:
Art. 69.1.2 of the Act of July 29, 2005 on public offering and the conditions for introducing financial instruments to the organized trading system and on public companies

The report:
The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna hereby informs that on 4 December 2006 received from Julius Baer Investment Management LLC („Julius Baer”) the notification of a sale of shares causing a decrease to below of the threshold of 5% of the votes at the General Meeting of Shareholders of PKO BP SA.

According to this notification Julius Baer informed that in fulfilment of the obligation under Art. 69 Section 1 item 2 in connection with Art. 87 Section 1 item 3 letter b of the Act of July 29, 2005 on public offering and the conditions for introducing financial instruments to the organized trading system and on public companies notifies that, in result of managing by Julius Baer of foreign securities portfolio on contract, as a result of a sale by its clients of shares of PKO BP SA in result of an open market sale as of 2 November 2006 Julius Baer holds 53,614,887 shares of the Bank constituting 5.36% of the share capital of PKO BP SA and giving the right to exercise 49,892,705 votes at the General Shareholders Meeting of PKO BP SA, which corresponds to 4.99% of the total number of votes at the General Meeting.

According to this notification before the aforementioned sale of the shares of PKO BP SA Julius Baer held 53,754,504 shares of PKO BP SA constituting 5.37% of the share capital of PKO BP SA and giving right to exercise 50,032,223 votes at General Shareholders Meeting of PKO BP SA, which corresponds to 5.00% of the total number of votes at the General Meeting.