RB nr 38/2007

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

The Management Board of MCI Management S.A. informs that on June 19, 2007 an agreement of sale of IPLAY Sp. z o.o. shares was signed between MCI Management S.A. and its subsidiary – Digital Avenue S.A. in organization. On the basis of the agreement Digital Avenue purchased from MCI Management in total 629 IPLAY Sp. z o.o. shares with their nominal value of PLN 500 per share for the total amount of PLN 459 170.00. The transaction was made in cash.

After the transaction Digital Avenue shall hold in IPLAY Sp. z o.o. a 74.33% stake in the share capital of the company and Digital Avenue is in the process of finalizing next transactions of sale of shares from other shareholders in IPLAY so that finally it shall hold 87.10% shares in IPLAY. The other shareholders in IPLAY and the persons managing IPLAY shall join the shareholding structure of Digital Avenue S.A. and their stake in Digital Avenue shall not exceed in total 20%.

The objective of the transaction is to continue to build the Capital Group at the level of Digital Avenue S.A. which shall focus on digital entertainment for the Internet users and mobile telephony. MCI Management S.A. informed about its intent to make the transaction in its report no. 22/2007 from April 20, 2007 regarding foundation of Digital Avenue S.A.

The volume of the transaction corresponds to the value of the capital invested by the Fund in the IPLAY project between December 2002 and April 2006. After the transaction MCI Management does not have the direct capital exposure in IPLAY.

Iplay.pl is the first website in Central and Eastern Europe that began to legally sell music over the Internet and signed direct agreements with the biggest international recording studios for distribution of music online. It offers music of e.g. Sony BMG, Warner, Beggars Group, Sanctuary Group and a number of other independent recording studios from Poland and abroad. The company has been operating since December 2003 and since May 2004 it has been selling digital music content on the Internet.

The assets represent over 20% of the share capital of IPLAY Sp. z o.o. and are considered assets of significant value.