We are approaching the end of a year – yet another year of importance and a year abundant with changes. Above all, a jubilee year – our company celebrated its 10th anniversary. It has been ten years since we commenced trailblazing a path of changes in the Polish power industry. At that time we proved that the small was not necessarily so beautiful but what is more, that it was not effective as single power plants were not capable of ensuring the repowering undertakings.

During 2010 we chose to bet on new investments: 50 MW heat and power unit equipped with heat accumulator in Bielsko-Biała EC1 CHP and 50 MW of installed capacity to be obtained from a biomass-fired power unit currently under construction in Jaworzno. A next sizeable power unit, apart from Łagisza 460 MW one, will be a 900 MW power unit the construction of which will commence in the nearest future in Jaworzno III Power Plant.

This ending year was also very important to us all because of the shares conversion into Tauron stocks and the company debut of the Stock Exchange. Presently, implementing the strategy, the main emphasis should be put on the restructuring processes as they cannot be separated from the application of the cutting edge technological solutions in all areas of the electrical energy generation. We are facing the merger with Stalowa Wola Power plant and Tychy Heat and Power Plant as well as the restructuring of the Generation Area in the Group.

Reaching for the new technologies, we do not forget the basis of our operation – the hard coal. Two long-term contracts for the coal supply were signed in December 2010 with Kompania Węglowa and Katowicki Holding Węglowy. These two contracts and the yield from the coal mines incorporated in Południowy Koncern Węglowy serve as the warranty for the serene yet rhythmical operation of our power plants and heat and power plants.

Thanking for the intense work in 2010 I would like to wish all Employees, Partners and Friends of our company a very Merry Christmas and a Happy New Year in good health and all the best in the personal life and many successes in the professional life.

STANISŁAW TOKARSKI
Chairman of PKE SA Management Board