Establishment of the company Cineman sp. z o.o.

Current report 40/2006 dated 21.08.2006

The Management Board of ATM S.A. in Warsaw inform of establishing the company Cineman sp. z o.o. today.
In the newly-established company, ATM S.A. assumed 612 shares of PLN 500 each, which is a 51-percent share in the initial capital of that company. 49% of shares was assumed by the company Monolith Films sp. z o.o., being a leader of distribution of new film productions in the territory of Poland.

The establishment of Cineman is execution of previous announcements (current report no. 22/2006).
The objective of establishing the company is to introduce high-quality film content Internet digital distribution services to the market. Monolith Films will provide the company with access to the database of current top film productions. ATM will ensure safe access to the film content to telecommunications operators, Internet providers, and through their networks to all users of broad-band Internet connections.

The criterion being the basis for considering the assets acquired significant is the excess of 20% of the share capital of Cineman sp. z o.o. (Art. 2 par. 5 of the Finance Minister’s Ordinance dated October 19, 2005)
The shares have been acquired out of the Issuer’s own funds.
The shares acquired in Cineman sp. z o.o. give 51% of votes at the general meeting of that Company.
Cineman sp. z o.o. is an entity related to the Issuer only by the shares assumed by the Issuer.

Roman Szwed — President of the Management Board,
Tadeusz Czichon — Vice-President of the Management Board