PGE Polska Grupa Energetyczna S.A.

M&A Activity • Sep 16, 2016

Submission of an initial offer with partners for EDF assets in Poland.TheManagement Board of PGE Polska Grupa Energetyczna S.A. ("PGE") disclosesthat on September 16, 2016 PGE together with Enea S.A., Energa S.A. andPGNiG Termika S.A. (the "Business Partners") jointly submitted to EDFInternational SAS ("EDF") an initial, non-binding offer for purchase ofshares and stakes in EDF subsidiaries in Poland, possessing conventionalgeneration assets and operating a service business.

These assets encompass in particular:

- Rybnik power plant;

- CHP in Kraków, CHP in Gdańsk, CHP in Gdynia, CHP and district heatingnetwork in Toruń;

- CHPs and district heating network in Wrocław metropolitan area; CHPand district heating network in Zielona Góra (belonging to the companyZespół Elektrociepłowni Wrocławskich Kogeneracja S.A. and its subsidiaryElektrociepłownia Zielona Góra S.A.);

- Investment in gas-fired unit in Toruń (as a part of EDF Gaz Toruń sp.z o.o.).

In case of admission to the next stage of the transaction, the BusinessPartners will conduct a detailed due-diligence which will be the basisfor the decision about further steps in the transaction, includingsubmitting of the potential binding offer, after obtaining requiredcorporate approvals.

Legal ground: art. 17 section 1 of Regulation (EU) No 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuseand repealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/72/EC.