The Minister of Treasury
of the REPUBLIC OF POLAND

invites to negotiations on purchase of shares of

Przedsiębiorstwo Gospodarki Wodnej S.A.
with registered office in Jastrzębie Zdrój

Minister of Treasury with headquarters in Warsaw, ul. Krucza 36/Wspólna 6, 00-522 Warszawa, acting on behalf of the State Treasury, pursuant to Art. 33.1.3 of the Act of 30 August 1996 on Commercialisation and Privatisation (Journal of Laws of 2002, No. 171, item 1397, as amended), hereinafter referred to as the “Act”, and pursuant to the Resolution of the Council of Ministers of 17 February 2009 on detailed procedure of disposal of State Treasury-owned shares (Journal of Laws No. 34, item 264) extends an invitation to negotiations to all interested parties regarding the purchase of 1.228.623 (say: one million two hundred twenty eight thousands six hundred twenty three) shares of nominal value 10,00 (say: ten) PLN each, representing 90,59% of the share capital of Przedsiębiorstwo Gospodarki Wodnej i Rekultywacji S.A. with registered office in Jastrzębie Zdrój, address: ul. Chlebowa 22, 44-335 Jastrzębie Zdrój, entered in the register of entrepreneurs of the National Court Register under KRS number 0000082499, hereinafter referred to as the „Company”.

At the day present announcement 100% of shares of the company is in possession of State Treasury.

The company provides services in the area of water-wastewater management and implementation of rehabilitation works in landfills and degraded areas by industrial activity. The company specializes in purifying and emitting salted mining waters to rivers and supplying of industrial water.

Pursuant to Art. 36 of the Act, eligible employees are entitled to acquire, free of charge, 15% of the Companies’ shares belonging to the State Treasury on the date of registration, it is 127.575 (say: one hundred twenty seven thousands five hundred seventy five). There is provision that disposal of shares that have not been acquired by eligible employees will also be subject to negotiations with the Investor selected under these negotiations, in the event when eligible employees’ rights to acquire such shares free of charge have expired.

All concerned, hereinafter referred to as "Potential Investors" are invited to submit written confirmation of interest in participating in the negotiations no later than 21 June 2010 to the Ministry of Treasury or Advisor – BUDOSERWIS Z.U.H. Sp. z o. o., representing the Minister of Treasury in the process of selling shares of the Company, at:
1. Ministry of Treasury, 00-522 Warsaw, ul. Krucza 36/Wspólna 6, Mrs. Agnieszka Kazalska, Department of Privatization Projects, VII floor, room no. 729, phone (22) 695-97-09, e-mail: agnieszka.kazalska@msp.gov.pl.
2. BUDOSERWIS Z.U.H. Sp. z o.o. ul. Kościuszki 31, 41-500 Chorzów, telephone (32) 241 24 51 to 57 extension 132, fax (032) 241 49 56. Persons responsible for receiving applications are: Mrs. Marzena Polczyk: m.polczyk@e.budoserwis.com.pl and Mr. Marek Walczak: m.walczak@e.budoserwis.com.pl.

After presenting the current corporate documents, that is copy of the register of entrepreneurs of the National Court Register / certificate of registration in the register of economic activities, reflecting the current representation of the potential investor (the date of issue no earlier than three months before presenting the document), and where the person concerned is not a businessman - the presentation of documentary proof of identity and any power of attorney and signing by the duly authorized representatives of the Potential Investor of the "The obligation of confidentiality", will be available for consideration at the Ministry of Treasury or at the premises of Advisor (100.00 PLN price, payable in to account of the Ministry of Treasury in the Bank Gospodarstwa Krajowego SA, I Branch Warsaw, No. 83 1130 1017 0019 9426 2520 0008 or at the cashier’s desk, room 372, Division of General Accountancy and Reporting of the Department of Budget and Finances of the Ministry of Treasury from 12:00 noon to 2:00 PM) starting from the day following the date of appearance of this call, "Information Memorandum of the Company" (hereinafter "Memorandum") containing information about the legal situation and the economic and financial structure of the Company and the response to publicly announced invitation to negotiations. Persons responsible for the provision of the Memorandum will be the side of Ministry of Treasury Mrs Agnieszka Kazalska and on the side of Advisor Mrs Marzena Polczyk and Mr Marek Walczak.
"Memorandum" will be available to the day before the deadline for written responses to the publicly announced invitation to negotiations on purchase of shares of the Company.

Subject of negotiations shall be mainly price of the purchased block of equities of the Company proposed by the Potential Investor program of development of the Company, including among others investment obligations, obligations in the scope of environmental protection, obligations in the scope of the Company’s employees’ (and other people related to the Company) matters protection and way of securing execution of the obligations.

The deadline for written responses to the publicly announced invitation to negotiations on acquisition of shares of the Company for Potential Investors, who signed the document "The obligation of confidentiality" and received the "Information Memorandum of the Company, shall expire on 22 June 2010, at 3.00 PM (time official in Poland).

Replies of Potential Investors should be prepared in Polish and submitted in 2 copies in a sealed envelope at the Ministry of Treasury, ul. Krucza 36/Wspólna 6, 00-522 Warsaw, at the Registry of the Department of Privatization Project, VII floor, room no. 739.
The envelope must bear the inscription: "Responding to a public invitation to negotiations on acquisition of shares of the Przedsiębiorstwo Gospodarki Wodnej I Rekultywacji S.A. with registered office in Jastrzębie Zdrój - DO NOT OPEN" and the data for the identification of a potential investor.

Responses will be considered only by Potential Investors who signed the document "The obligation of confidentiality" and received the "Memorandum".

Minister of Treasury reserves the right to request additional clarification from Potential Investors who submit their response to the publicly announced invitation to negotiations.
Minister of Treasury by the deadline of 09 July 2010 in writing inform each of Potential Investors, who has the answer to the publicly announced invitation to negotiations, the outcome of its consideration.

Minister of Treasury reserves the right to: choose one or more Potential Investors with whom to enter into negotiations, changes in procedures and timetable for negotiations, withdraw from negotiations without giving a reason, to extend the deadline for responding to the publicly announced invitation to negotiations and the extension of the deadline to inform the consideration of responses to this invitation.

Minister of Treasury is not liable for any costs incurred by entities interested in acquiring shares in connection with participation in the negotiation and conclusion of the sale of shares of the Company.