RB nr 15/2007

Legal basis: Art. 56 subpar. 1 pt. 1 of the Act on Public Offering

The Management Board of MCI Management S.A. informs that on March 28, 2007 the fund signed the investment agreement with Zakłady Graficzne Taurus Stanisław Roszkowski Sp. z o.o. Pursuant to the agreement MCI and Taurus shall create a new entity which shall take over the organized part of NetPress and shall operate under the business name of NetPress Digital Sp. z o.o. Under this investment agreement shall MCI invest in two tranches up to PLN 1.5 million in total not later than within 18 months from the date is was signed. In the first round MCI shall take up shares for PLN 600 thousand at their nominal value of PLN 50.00 per each. The purchased shares shall correspond to 33.33% in the share capital of the company. The commitment of MCI in the second round of financing shall grow up to 49.9% maximum.

NetPress deals in the production and distribution of electronic versions of newspapers, magazines and books. The company is an exclusive partner in Poland of the world leader in digital publishing an American company Zinio Systems, Inc.
The company sells through its website www.netpress.pl where customers may chose from among over 30 press publishers and almost 100 titles of newspapers and magazines which may be read with the use of free Zinio Reader application. Digital editions in Zinio format are enhanced with additional functionalities such as search, notes making or archiving on hard drive. Zinio technology allows you to introduce a number of interactive elements which also increase the attractiveness of this form of reading the press. The easiest way to do that is add active links to the websites of advertisers as well as a possibility of placing advertisements in the form of multimedia files. In time links will be introduced to websites thus broadening the subjects of specific articles, to movie trailers or websites which allow the readers to comment on the subjects of the article. Another advantage of digital publications is also the delivery time as publications are downloadable even before they get to newsstands and furthermore, you do not have to do the newsstand at all. This feature may be especially important for those who travel a lot or people who live abroad and want to have a permanent access to current information from their home country. The magazines sold through NetPress may be read both on-line and off-line, and magazines in their electronic form, eliminating the costs of print and distribution, may be offered at much lower prices than their printed versions.
The means from the investments shall be used on the development of the technological platform which shall enable NetPress to go into new business areas as well as promotion and marketing of services and products of the company and broadening the product offer to include both new titles of newspapers and magazines and new products (e-books, audio-books, etc.)

The purchased assets correspond to over 20% of the share capital of NetPress Digital Sp. z o.o. and are considered assets of significant value.