RB nr 18/2005

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

The Management Board of MCI Management S.A. informs that on May 18, 2005 within the second round of investment the Fund took up 250 shares of the new issue in IPLAY Sp. z o.o., based in Wrocław. In total the purchased shares account for 67.57% of the share capital of IPLAY Sp. z o.o. MCI Management SA paid 250,000 PLN for the purchased shares that is 1,000 PLN per each share. The total nominal value of the shares is 125,000 PLN, that is 500 PLN per each share. After the acquisition of the shares of the new issue MCI Management S.A. holds in total 306 shares in IPLAY Sp. z o.o. which accounts for 82.70% of the share capital of the company after the increase.

IPLAY is the first legal music portal in Poland selling music via the Internet which started its operations at the beginning of September 2003. In December 2003 MCI Management S.A. conducted the first round of investment taking up 56% of shares in IPLAY. In 2004 the company focused on preparing the technological facilities and finding products for sale. Since September 2004 the portal has been selling Polish and foreign music protected with DRM technology. In April 2005 IPLAY finalized the acquisition of music product from the biggest music labels (Warner Music and SonyBMG) and contracted a sales and promotion alliance with Pepsi-Cola General Bottlers Poland Sp. z o.o. On May 1, 2005 IPLAY activated a new version of the portal www.iplay.pl.

The realization of the second round is connected with the financing of IPLAY development program; the means collected by the Company will go on the financing of the use of the technological platform, extending the range of products and expanding the sales channel.

The purchased assets account for over 20% of the share capital of IPLAY Sp. z o.o. and are treated as assets of considerable value.