MOL-INA consortium signed a contract with the government of Bosnia & Herzegovina to become 67% owner of Energopetrol

MOL hereby announces that on 8 september 2006 MOL and INA consortium signed a contract with the government of Bosnia & Herzegovina to become 67% owner of Energopetrol through capital increase. The Consortium will subscribe Energopetrol’s shares to be newly issued in an aggregate amount of KM 60 million (EUR 30.7 million). The capital increase will provide financial resource to repay Energopetrol’s debts. Following the subscription MOL-INA Consortium will hold 67%, the Federation government will keep 22% while small shareholders will hold the rest of the shares.

MOL-INA Consortium transfers KM 10 million (EUR 5.1 million) to the Government of BiH as a consideration of acquiring control over the Company. INA-MOL will provide resources of KM 150 million (EUR 76.7 million) to Energopetrol in order to finance its investment program in the next three years. The closing of the transaction is subject to several conditions, including the approval of the Competition Office of Bosnia & Herzegovina.

Energopetrol owns and operates 64 filling stations in Bosnia&Hercegovina. MOL and INA is already present in the country’s growing wholesale and retail market. The joint operation will result in clear retail leadership in Bosnia & Herzegovina and provides significant synergies in longer term.

Zsolt Hernádi, Executive-chairman of MOL commented: “This transaction is a clear sign of the successful cooperation between MOL and INA and is fully in line with our announced strategy. The Balkan region with its high growth opportunity is the primary area of our Downstream expansion plans.”