RB nr 49/2004

Legal basis: Art. 81 PPO

Due to a greater than expected demand of the clients and attraction of new contractors Computer Communication Systems S.A. will close H1 2004 with its turnover at the level of 31.36 mln PLN, which is an increase compared with H1 2003 by 113.9%. The company is expecting at the end of H1 EBITDA at 0.83 mln PLN.

On June 29, 2004 9.03% of the shares of the company was sold to a group of managers for 2.9 mln PLN. In total the group of managers will possess in the company 14.3% of the votes at the General Meeting of the Shareholders, whereas the previous shareholders respectively MCI Management SA – 64.86% and Enterprise Investors – 10.90%. In order to make the transaction MCI took up a new issue of shares for 2 mln PLN.

The means gained from the issue will be used to finance working capital connected with the increased profits of the company and performance of the projects which began in H1 2004. It resulted in an increase of the financial forecast for 2004 the by the Board of the company to EBITDA at 3.01 mln PLN. The forecasts for 2005 assume the achievement of the EBITDA at 5.25 mln PLN. The Board of CCS S.A. believe in further dynamic growth of the firm, which is confirmed by the buy-out of the shares from the previous shareholders of the company by the group of managers.

The company is considering two options of further capital growth: public offer at WSE in 2005 or attracting a strategic investor. Corum Group International Ltd, (www.corumgroup.com) a Swiss consulting firm specializing in mergers and takeovers is the company”s advisor in this area. It is advising renown firms operating in the area of new technology. Computer Communication Systems has been cooperating with Corum Group for almost a year now.

Computer Communication Systems S.A. is the biggest independent integrator for the branch of commerce and distribution. The clients of the firms include e.g. Jeronimo Martins Dystrybucja, Kaufland Polska, Plus Discount, Kronopol, Polski Koncern Naftowy.
The firm has been operating in the Polish market since 1991. In 1999 MCI Management SA and Enterprise Investors investment funds invested in the company. About 25% of the shares of the company possessed by the founders and the managers of the company.