Signing of the agreement regarding the establishing and operation ofFIZAN Eko-Inwestycje fund

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")discloses that on July 30, 2019 PGE, PGE Energia Ciepła S.A. ("PGE EC"),PGE Górnictwo i Energetyka Konwencjonalna S.A. ("PGE GiEK") and PGEEnergia Odnawialna S.A. ("PGE EO") (subsidiaries of PGE, jointly withPGE later referred to as the "Investors") signed the investmentagreement with Towarzystwo Funduszy Inwestycyjnych Energia S.A. ("TFIEnergia" - investment fund company), which plans to establish aclosed-end investment fund under the name "Closed-end Investment Fund ofNon-public Assets Eco-Investments" (the "Fund"). The Fund will beissuing Investment Certificates that will be subscribed by Investors.The fund will focus its activities on the implementation of investmentprojects of a complementary nature in relation to the core activity ofthe PGE Capital Group, consistent with its strategy, aimed at thedevelopment of new business lines.

The subject matter of the agreement is the cooperation between TFIEnergia and the Investors in the scope of conducting the issue ofInvestment Certificates, defining the rules for managing the Fund andmutual relations between the Fund's participants. The contract alsospecifies the level of investors' financial commitment. The entitymanaging the Fund and representing it in relation to third parties willbe TFI Energia.

The Fund's investment objective will be to increase the value of theFund's assets as a result of the increase in the value of deposits andto obtain investment income. The investment policy of the Fund providesfor specific categories of Fund's investments, market areas and criteriafor managing the Fund's assets in the selection of those investments.

The fund will pursue its investment objective by investing funds inentities operating in market areas related to:

- electromobility,

- increasing flexibility and optimisation of energy systems,

- energy efficiency services,

- reducing the emissions of the power industry, improving itsefficiency, reliability and production flexibility, includinginvestments in highly-efficient generation sources,

- using digital technologies to improve the cost efficiency ofproduction and supporting processes in the energy sector.

The assumed investment horizon covers a period of at least 5 years,unless the detailed investment conditions justify a shorter period.

Investors will be obliged to make payments to the Fund in the totalamount of not less than PLN 1.5 billion until the end of the Fundadjustment period, i.e. until the end of the 36th month from the date ofFund registration, based on the schedule specified in the agreement,with the majority of payments falling within year 2020. The fund will beestablished for an indefinite period. The Fund may be dissolved nosooner than after 7 years from entering the Fund in the register ofinvestment funds.