Press release

Referring to PCC's press releases in ICIS News of 16.03.2009 and 17.03.2009

PCC has released in the last period a series of statement aiming to mislead and misinform the petrochemical businesss comunity. For a corect information of the business comunity, which has the right to know the truth, Oltchim is stating the following:

• In 2008, Oltchim has reduced its indebtness from Euro 491 millions to Euro 434 millions, and, through AVAS' debt into equity swap, the total debt will be further reduced to Euro 300 millions. This swap will be implemented subject to prior European Commission's approval.
• As a result of implementing the restructuring and revamping program developed by Oltchim's management, the company's maximum indebtness rate will reach the maximum level of Euro 634 millions in 2012, when Oltchim's turnover will increase from Euro 528 millions, in 2008, to Euro 791 millions in 2012 and to Euro 975 millions in 2013, the first year of full operating of the revamped plants.
  

As a consequence, Mr. Zaremba's statement, according to which our debts will reach the amount of Euro one billion, is a false and insubstantial one.

• We need to mention that in 2013 EBITDA will reach the level of Euro 197 millions. The strategy Oltchim's management is currently implementing was tested and certified through market studies and financial projections developed by world leading consulting companies.
• Financial status of Oltchim during 2003-2008 has not been alterated, as Mr. Zaremba said, but on the contrary the company has recorded a substantial increase in turnover, with positive EBITDA.     

• Oltchim was not able to purchase proper quantities of ethylene and propylene, which is required to operate the plants at capacity , and that has lead to an EBITDA of lower amount in 2008. Interuption of ethylene and propylene supply in November and December 2008 by the local supplier, has led to the depreciation of efficiency in 2008 having as a direct effect a EBITDA of very low value.
• Referring to the fact that Oltchim is focused mainly on the production of PVC, as stated Zaremba, is totally untrue. The truth is that: 50% of Oltchim's outcome is represened by the production of polyols and caustic soda, products on which we are competing with PCC Rokita on markets in Germany, Poland, Ukraine, Serbia, Lithuania, etc.  
• For the avoidance of any doubt, we have to mention that Zaremba is misleading when stating that the range of products and geographic markets of Oltchim and PCC Rokita are different because:
  
  
  
  • Oltchim is manufacturing the widest range of polyols among the producers in Eastern Europe and with the capacities which it holds is the leader among those producers;
  • PCC Rokita has started to diversify the range of polyols and to expand its capacities only after PCC SE has become a shareholder in Oltchim

• PCC as a shareholder in Oltchim, in the General Assembly as well as by its representative in the Management Board has always react against the programs of increasing the polyols capacity and the converting of mercury electrolysis to membrane electrolysis, but, on the other hand it applies to PCC Rokita.
• The policy of misinformation and disparagement against Oltchim and its management performed by PCC, through Zaremba, is aiming to decrease Oltchim's value on the stock market and to determine the shutdown of its activity, with the main goal to eliminate a competitor.

It can be clearly stated and proved that Oltchim's business plan is relying on studies prepared by internationally recognized specialized companies and the company will not change its development strategy according to the interests of a minority shareholder who is involved in a competitive activity.