RB nr 41/2005

Legal basis: § 5 subpar. 1 pt. 25 RO

The Management Board of MCI Management SA informs about the correction of the forecast of the financial result of MCI Management SA at the end of 2005:

2005 Net consolidated financial result
forecast from 10.10.2005 PLN 5,560 thousand
correction of forecast PLN 6.781 thousand

The basis for the increase of the forecast is better than earlier expected estimated results of the portfolio companies in Q4 this year. The other parameters of the forecast: unit net financial result of MCI Management SA and the valuation of MCI Management SA assets made with the use of directors’ method remain unaffected.

The final verification of the earlier forecast for 2006 will be made by the end of Q1 2006 after approval of the budgets of MCI Management SA portfolio companies and investment plans of the fund for 2006. The strategy of the fund assumes the extension of the portfolio of the investments from 15 to 18-20 companies. The work on next projects is well under way. Two large projects should be closed at the latest in Q1 2006. Furthermore, the fund in the middle of serious discussions with 4 new companies and the list of investment opportunities has reached 18 projects. Next year MCI is planning to make next exits from investments by taking at least one company public, finding a strategic investor for another and selling one company through MBO. Foreign operations of MCI (branch offices in Prague and Bucharest) are performed as planned; the pipeline of potential investments in those markets is promising and still growing. In 2006 minimum one foreign investment shall be finalized in the Czech Republic, Slovakia or Romania. There are over 10 projects currently in the foreign pipeline. Furthermore, in 2006 the fund is planning to begin to analyze investment opportunities in the Ukrainian and Russian markets. The fund will continue the investments in the area of Internet/e-commerce, mobile/wireless, and the first investment in biotechnology/life science sector shall not be excluded. Due to the growing value of assets the growth/expansion investments are planned in the first place which is a qualitative change compared to previous years when they were dominated by seed/startup investments.