MOL divests its Polish retail network

MOL Hungarian Oil and Gas Public Limited Company hereby announces that Slovnaft Polska S.A., a member of MOL Group, has signed a Preliminary Sale and Purchase Agreement with Lotos Paliwa, a member of Lotos Group, for the divestiture of the MOL Group’s retail business in Poland.

The deal includes a network of 12 retail service stations, 2 undeveloped sites and potentially the transfer of 10 dealer-owned franchise operated stations located in Southern and Central Poland, representing approximately a 0.5% market share. The closing of the transaction is subject to anti-monopoly approval and is expected in the first quarter of 2006. 

As a result of this transaction MOL will cease its retail operations in Poland due to a lack of economies of scale. However, MOL will remain active in the wholesale fuel product market, where its Polish wholesale market share exceeded 4.0 % at the end of 2004.