Rumuors on the possible dismissal of PKN Orlen's CEO intensified yesterday following the announcement that Adam Pawlowicz resigned from his seat on the Supervisory Board without giving any reason for his decision. The unexpected resignation may signal protest to the pressure from the Treasury Ministry on making personnel changes to PKN Orlen's Board of Directors. We expect the uncertainty relating to the future of the BoD, which could set political instability within the company’s key managerial posts and undermine its long-term strategy goals, to impact the trading on the stock, as we approach the next Supervisory Board meeting on Friday, March 31. As the stock price has already dropped 2.5% yesterday reflecting the negative newsflow yesterday, we reiterate our Buy rating for PKN Orlen with PLN 67.1 fair value based on expectation of improving financial performance in 2006.