RB nr 48/2004

Legal basis: Art. 81 PPO

The Management Board of MCI Management SA informs, that in connection with the implementation of the strategy, assuming the activation in 2005 another MCI TechVenture 2.0 fund which will be investing in the Central Europe region, MCI Management S.A. has opened in June 29, 2004 its first foreign branch office in Prague, which will be managing the operations of the fund connected with the Czech and Slovak markets.
MCI is going to make use of its rich experience and the position of the leader from the Polish market in VC type investments in new technology sectors (IT, Internet, Mobile) in the Czech and Slovak markets. According to the fund”s assessment the situation in the Czech and Slovak markets demonstrates the following features:
• Little competition in the area of VC funds connected with the size of those markets.
• Comparably lower valuations of the companies connected with the lack of extensive capital market and the size of the market.
• Attractive supply of the investment projects with competitive technology, experienced management and aspirations to expand internationally.

MCI is going to invest first of all in innovative IT, Internet and mobile enterprises with the regional expansion in their development strategies. Investing in building entities operating regionally and achieving adequate scales makes it much easier for the fund to later exit to the strategic investors and by Initial Public Offer (IPO). For IPO of the regional entities the best is the Warsaw Stock Exchange which is among the biggest and the most liquid in the region.
At present the priority is the preparation of the solid foundation for the future operations of MCI in the Region. The activities of the branch office shall be oriented to the following:
– Looking for and analyzing the enterprises operating in the Czech and Slovak markets looking for VC support.
– Support of the expansion processes of the MCI portfolio companies into the Central and Eastern Europe.
MCI expects that in the years 2004-2006 at least 3 new investments connected with the Czech and Slovak markets will be performed.

The operations of the branch office will be financed from the current budget of the fund and it shall not affect the results of 2004.

Within the MCI branch office in Prague two experienced investment managers will be working for the fund – Mr. Ondrej Bartos and Mr. Michael Poplar-Rostock.
The branch office will be located in Prague:
V Tunich 10, 120 00 Prague 2, Czech Republic,
Tel: +420 296 202 055,
Fax: +420 296 202 210

Additional information:

Ondrej Bartos
In 1996 he established his first company: Credo International – dealing with economic and accounting consulting for small and medium-sized businesses. In 1998 he became a co-founder Acron Communications designing computer software and web applications which together with his partners he sold in 2003. In 1998 he became interested in Venture Capital funds as a financial tool of the developing companies and began to explore the global VC market, and in 2001 he was one of the founders of the technology- focused Incubator 2.0.
In 1998 and 1999 he also organized VC conferences in the Czech Republic, supported by CVCA and EVCA. He is a managing director of the TUESDAY Business Network association which he has been building since 1999 as the local chapter of the global First Tuesday network. He holds a degree from University of Economics in Prague (major in Finance and Accounting).

Michael Rostock
In 1999 he established Venture Investors in which he is the President. Earlier he worked as a legal counsel for WoodCommerz. He participated in the first issue of eurobonds in Central Europe (ČEZ – the Czech power utility was the issuer.) He also worked for PPF (the First Privatization Fund) where he worked on the preparation of a few privatization projects in Russia and Bulgaria. He is a graduate of law at the Charles of Prague, – St. Anthony”s College in Oxford (Soros scholarship) – Hughe”s Hall in Cambridge (FCO Chevening Scholarship) where he got his Master”s Degree in Law.) He specialized in securities and the law of exchange, as well as regulation of the financial markets. He speaks Czech, English, Polish and Russian. He founded and presided the Central European Association at the University of Cambridge.