The dividend policy to be followed by the Company’s Management Board will comprise of paying dividends consistent with the level of the Company’s development and to allow for the maintenance of a reasonable level of financial liquidity. In the medium term, the Management Board intends to make a recommendation to the Shareholders’ Meeting that dividends be paid in accordance with power industry standards. The Management Board currently believes that a distribution of nearly 40-50 per cent. of the consolidated net profit will be attributable to equity holders of the parent company. For each individual distribution, the amount of the dividend will depend, in particular, on the Company’s overall indebtedness, expected capital expenditures and prospective acquisitions.

Proposal regarding the distribution of profit for 2011

On March 12, 2012 the Management Board of the Company decided to address the Company’s Annual General Meeting with a motion for approval of suggested distribution of net profit for 2011, suggested dividend date and dividend payment date.

The Management Board of the Company decided to propose a distribution of the net profit for 2011 in amount of PLN 4,556,115,489.08 in a following way:

1) for a dividend for shareholders - PLN 1.32 per share;

2) for the reserve capital – an amount constituting the remaining amount of the net profit for 2011.

The proposed dividend date is August 22, 2012 and the proposed dividend payment date is September 6, 2012.

Dividend from the profit for year 2010

The Ordinary General Meeting of the Company (the "OGM") of June 29, 2011 adopted the resolution on distribution of net profit for 2010 and retained earnings, distributing a part of the profits for the dividend for shareholders (see current report no. 25/2011)

According to the OGM resolution, the net profit for 2010 in amount of PLN 2,920,423,465.45 and retained earnings in amount of PLN 120,474,499.24 were distributed in a following way:

1) for a dividend for shareholders - PLN 0.65 per share;

2) for the reserve capital – an amount constituting the remaining amount of the net profit for 2010 and retained earnings.

As at the date of OGM, the dividend applied to 1,869,760,829 shares and the total value of the dividend amounts to PLN 1,215,344,538.85. Shares, which were purchased by the Company for redemption, are excluded from dividend.

The OGM determined September 15, 2011 as the dividend date and September 30, 2011 as the dividend payment date.

Dividend from the profit for year 2009

The Ordinary General Meeting of the Company (the "OGM") of June 23, 2010 adopted the resolution on distribution of the Company's net profit for the financial year 2009 (see current report no. 32/2010). According to the OGM resolution the net profit in amount of PLN 1,440,497,736.84 was distributed in the following way:

- PLN 125,629,336.84 for the supplementary capital;

- PLN 1,314,868,400.00 zł for the dividend for shareholders.

The dividend applied to 1,730,090,000 series A and B shares and the dividend per share amounted to PLN 0.76.

The OGM determined September 22, 2010 as the dividend date and October 12, 2010 as the dividend payment date.