RB nr 12/2005

Legal basis: § 5 subpar. 1 pt. 1 RO and § 7 RO

The Management Board of MCI Management S.A. informs that on March 9, 2005 MCI concluded an agreement for sale of 333 300 shares of the portfolio company Process4E SA with strategic investor – Update Software AG, in no way connected with MCI Management S.A. or persons supervising and managing the company. Update Software AG based in Vienna is a company listed on the German stock exchange in Frankfurt am Main. It is the leading European provider of CRM solutions with subsidiaries in Germany, Switzerland, the Netherlands, France, Hungary and the Czech Republic.

The sold shares account for 66.66% of the share capital of Process4E SA. The value of the transaction is 4,500,000 PLN and the book value of the shares 1,696,969 PLN. In the years 2000-2001 MCI Management SA invested in the company and after almost five years (taking into account the recent investment in Clix Software Sp. z o.o – a subsidiary of Process4E) realized directly about 294% rate of return on investment with average annual IRR of 28.29%. After the sale MCI Management SA does not have any shares in Process4E SA.

This transaction proves the efficiency of the operations of the Fund and its consistency in following the assumptions of the MCI investment strategy. It is the second successful exit from the investment within a year after Travelplanet.pl S.A. (see the current report No. 46/2004) and the first sale to a foreign investor of that stature.
Process4E S.A is one of the most successful consulting companies and CRM integrators in Poland.

The sold block of shares accounts for over 10% of the equity capital of MCI Management SA and it is considered an asset of significant value.