RB nr 20/2005

Legal basis: § 5 ust. 1 pkt 1 RO oraz § 7 RO

The Management Board of MCI Management S.A. informs that on June 1, 2005 the Fund took up 175 shares of the new issue in Hoopla.pl Sp. z o.o. based in Warsaw. In total the purchased shares account for 63.64% of the share capital of Hoopla.pl Sp. z o.o. MCI Management SA paid 350,000 PLN, for the purchased shares that is 2,000 PLN per each share. The total nominal value of the shares is 87,500 PLN, that is 500 PLN per each share.

The transaction made on June 1, 2005 is the first round of investment in Hoopla.pl Sp. z o.o. MCI Management SA is going to invest up to 1.2 million PLN in the company over 2 years. Hoopla shall use the gained means on further expansion of the offer and intensification of sales in Poland. After realization of all rounds of investment the estimated shareholding of MCI in the share capital of the company shall be 85%. The investment agreement provides within the initial investment for taking up by MCI Management S.A. the new issue of shares for 800 thousand PLN. Furthermore, the investment agreement entitles MCI Management S.A. to make next rounds of investment in the years 2006-2007. The volume of the investments within the next rounds will correspond with the demand of the company for additional capital and it will be based on current results of the company.

Hoopla.pl Sp. z o.o. is an online store specialized in sales of electronic goods and computer equipment. Unlike other popular Polish online stores the customers here can buy large products such as fridges, cookers, washing machines, television sets as well as laptops and portable mp3 players. Hoopla.pl will be trying to convince the clients that with the use of the Internet they can buy not only small products but also bigger products which they used to buy in specialist white and brown goods 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. The system of transportation costs integrated with the store enables the clients to know the actual costs of the purchased products and they are not surprised to pay additional costs of shipment charged in an unknown manner after an order is placed. The payment for the ordered goods can be made by choosing between money transfer, credit card, \”Payment by Inteligo\” option and the most popular payment on delivery to courier. In the nearest future the store will be extending its range of products by adding new less popular brands, yet due to the price and the quality buying them may be worth considering.

The strategic goal of the company is to reach the position of the leader in the sales of white and brown goods in Poland within up 3-5 years. After the stage of organization and the development of products offer Hoopla.pl has entered the path of dynamic growth. The finding of venture capital investor should significantly accelerate the realization of the strategy of growth of the company. MCI Management SA will be playing the role of the financial investor actively supporting the growth of the company. The commitment of MCI in the company Hoopla.pl results from the realization of the strategy of the Fund assuming the extending its investments in the area of trade in electronics, especially consumer electronic and white goods.

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.