RB nr 49/2007

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

The Management Board of MCI Management S.A. informs that on July 11, 2007 the fund paid PLN 600 thousand in cash for 12,000 shares that is with their nominal value of PLN 50.00 per one share in the newly established company NetPress Digital Sp. z o.o. which represent 33.33% in the capital of the Company. The transaction is the result of the investment agreement signed by MCI on March 28, 2007 with Zakłady Graficzne Taurus Stanisław Roszkowski Sp. z o.o. about which the Company informed in the report no. 15/2007 and fulfillment of the conditions precedent under the agreement. Under the agreement MCI and Taurus undertook to create a new entity which took over the organized part of after fulfillment of the conditions precedent operating until then within Taurus under the name of NetPress – Digital Magazines Distribution Department. Apart from the amount paid in by MCI on July 11 this year the fund undertook to realize the second tranche of the investment by September 2008 in the amount of up to PLN 900 thousand which shall increase MCI stake in the capital of the Company up to maximum 49.9%.

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.)

In compliance with the provisions of the investment agreement on June 22, 2007 Mr. Maciej Kowalczyk holding the position of Proxy in MCI Management SA was appointed to the Supervisory Board of NetPress Digital Sp. z o.o. The investment is a long-term investment.

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