RB nr 35/2005

Legal basis: Art. 81 subpar. 1 pt. 2 PPO

The Management Board of MCI Management SA informs that on October 5, 2005 it received the signed on October 3, 2005 investment agreement regarding MCI Management S.A. investment in Mito Sp. z o.o.
The objective of MCI Management S.A. is to invest over 2.5 million PLN in Mito Sp. z o.o. shares over the period of 3 years. After realization of all rounds of investment the estimated shareholding of MCI in the share capital of the Company shall exceed 50%. The investment agreement provides that MCI Management S.A. will take up in the first investment round 4,567 of new shares for 515 thousand PLN. In total the shares will account for 25.56% of Mito Sp. z o.o. share capital.
The investment agreement gives MCI Management S.A. the right to a partial buyout of the remaining Mito Sp. z o.o. shareholders after 2007. After implementation of the partial buyout the MCI shareholding in the Company shall reach over 50%. The value of the buyout will correlate the current results of the Company.

Since July 2004 Mito Sp. z o.o. has been an operator of www.domzdrowia.pl web site and has been operating based on a pharmacy outlet. The business model assumes running an e-commerce B2C pharmacy and that is why the Company still in October this year will change its name to DomZdrowia.pl Sp z o.o. domzdrowia.pl web site presents a wide range of OTC drugs and medicinal products. The basic objective of the enterprise is to enable the individual clients to place orders in the pharmacy outlet online; the orders shall be delivered by courier or mail, as requested by the clients. The obvious advantages of the use of domzdrowa.pl web site for the clients include first of all access to much cheaper nonprescription medicinal products and other medicinal products in comparison to traditional pharmacies, privacy and security of the clients, much greater freedom of choice of the products and a wide selection of payment methods. The web site guarantees the delivery of the order within maximum 3 working days. The priority of DomZdrowia.pl is the provision of services and serving the clients at the highest possible level and that is why the company has a highly qualified staff of pharmacists always willing to assist the clients on the telephone of the Internet.
The current shareholders of the Company directly engaged in the management of the Company have a long-lasting business experience in the pharmaceutical and medical branch. The management of the Company is actively involved in the support of legislative changes of the Polish pharmaceutical law consistent with the EU directives.

The strategic objective of the company is to continue the dynamic growth of turnover and maintain the position of the undisputed leader in the area of OTC drugs ordered online in Poland. According to the assumed forecasts of the Company and on the basis of the development of the e-commerce markets in Europe and USA, the Internet channel can reach over the next 5 years at least 5% share of the market of OTC drugs.

The attraction of the venture capital investor should considerably speed up the implementation of the strategy of growth of the company. MCI Management SA will play the role of the financial investor actively supporting the strategic growth of the company. The investment of MCI in DomZdrowia.pl is the result of the implementation of the strategy of the Fund assuming the increase of the investment in the area of electronic trade, especially in the segment of the consumer products.