RB nr 37/2005

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

The Management Board of MCI Management SA hereby informs on October 19, 2005 the Fund took up 100 new issue shares of Hoopla.pl Sp. z o.o. based in Warsaw. The purchased shares in total account for 26.67% of the share capital of the company after increase. MCI Management SA paid 200,000 PLN for the purchased shares, that is 2,000 PLN per each share. The total nominal value of the shares is 137,500 PLN, that is 500 PLN per each share. After taking up the new issue shares MCI Management S.A. holds in total 275 shares in Hoopla.pl which accounts for 73.33% of the share capital of the company after increase.

The transaction concluded on October 19, 2005 is the second tranche of the 1st round of investment in Hoopla.pl Sp. z o.o. The company meets all conditions of the investment agreement authorizing it to realize this tranche, which allowed for making additional investment as planned.

The value of revenues of the Company after three quarters of 2005 significantly exceeded the planned level – by almost 40%. In Q4 and especially in holiday season, further dynamic growth of sales is expected. Such good results of sales come from the professional management of the company and fast as well as efficient extension of the products offer. The company is gaining stronger and stronger competitive edge position thanks to the growth of trust of the clients in Hoopla.pl brand and the popularity of www.hoopla.pl web site. It should also be noted that the Company is constantly extending its range of products, presenting not only new models of devices of the producers already offered but also introducing new product categories in the offer.
The means gathered from the realization of the second tranche of financing will be used primarily on PR activities and marketing campaign planned during holiday season. They will also allow for the development of sales platform and optimizing transaction service technology. This covers such areas as the development of a call center servicing the customers all around Poland, as well as modernizing the Company’s IT systems.

Hoopla.pl Sp. z o.o. is an online store specialized in sales of ADG, RTC and computer equipment. Unlike other Polish online stores the customers here can select from a large range of products such as fridges, cookers, washing machines, television sets as well as telephones and mp3 players. Hoopla.pl is convincing the customers with the use of the Internet that they can buy not only small but also bigger products which they used to buy in specialist RTV and AGD outlets. Apart from saving time and a possibility of being offered a wide range of products to choose from, the basic reason why they should visit Hoopla.pl is their attractive price. A friendly Internet interface for servicing transactions leads the customer through he purchase process and automatically calculates the transportation costs. The system is easy to operate and intuitive. The payment for the ordered goods can be made by choosing between money transfer, credit card, POD, etc.

The strategic goal of the Management of Hoopla.pl is to reach the position of the leader in the e-commerce market in sales of RTV i AGD products.

The purchased assets account for over 20% of the share capital of Hoopla.pl Sp. z o.o. and are considered assets of significant value.