On May 16, 2005, OJSC “Concern “Galnaftogaz”” held a regularly scheduled general meeting of shareholders

According to the minutes of the Registration Committee, holders of 86.07% of the Company’s shares attended the meeting in person or by proxy.

The general meeting of shareholders endorsed the management’s report on the financial and business results of OJSC “Concern “Galnaftogaz” in 2004, the report of the Company’s Supervisory Board, the report of the Audit Committee, and the Company’s annual report and balance sheet for 2004.

The shareholders endorsed the results of subscription for the Company’s shares of the fourth issue. As a result of this subscription, the Company’s charter capital increased from UAH 130 million to UAH 160 million.

The meeting endorsed a decision to distribute the company’s 2004 net income of UAH 17,055,000 as follows: 85% to be channeled into the Company’s Development Fund and the remaining 15% into the Reserve Fund.

The meeting endorsed a decision to increase the membership of the Company’s Board of Directors from 7 to 9 persons. According to the Company’s General Director Yury Kuchabsky, this decision is due to the increasing workload on the Company’s executive body. The shareholders voted to appoint Dmytro Herasimov, director of “Trading House Galnaftogaz” LLC and Iryna Kuchabska, director of Center for Payments for Fuel and Services as the two new members of the board.

To optimize the structure of management of the Concern’s property in Zakarpattia Region, the shareholders approved the alienation of the Company’s ownership rights in the state company KhustNaftoProdukt. Now Galnaftogaz Concern is represented in Zakarpattia Region by the State Company UzhhorodNaftoProdukt.

OJSC “Concern “Galnaftogaz”, rating D&B 4A-2, is one of the biggest owners of filling stations in Ukraine. The concern owns a chain of OKKO filling stations, which includes 98 modern filling complexes. Galnaftogaz Concern owns a total of 164 filling stations in the Regions of Lviv, Ivano-Frankivsk, Zakarpattia, Ternopil, Rivne, Khmelnytsk, Vinnytsia, Kirovohrad, Kharkiv, and Chernihiv, as well as in the country’s capital, Kyiv. The Concern’s charter capital is UAH 160 million. Galnaftogaz Concern OJSC has reported 2004 consolidated net income of UAH 17 million (versus UAH 10.6 million in 2003) in keeping with the Ukrainian Standards of Financial Reporting. Ernst & Young is conducting an audit of the company’s financial and business performance in 2004.

Contact Oles Pohranychnyy at (032) 298-96-31