Identification of investment goals

Current report 13/2007 dated 26.02.2007

Today, the Management Board of ATM S.A. decided to suspend indefinitely the actions intended to take over one of domestic telecommunications operators. The decision results from a change in the seller’s position concerning the terms of the deal previously agreed upon between the parties.

In view of the above, the Management Board of the Company shall modify the investment goals for the new share issue. According to the current evaluation of investment needs and the execution of the strategy of ATM S.A. development, funds gained from the share issue are earmarked for the following investments:

  1. Building a telecommunications access infrastructure for small and medium enterprises and government units based on radio technologies and using combined lines as part of the framework agreement with TP S.A., the so called BSA (bitstream access) agreement. It will enable getting fast access to the strategic segment of the market without the need of any additional takeovers. Although the investment lead time will be a little longer, it will only be more effective. The foreseen expense amount will be approx. PLN 40 million.
  2. Taking up a minority shareholding in a new issue of an international telecommunications operator operating mainly in the countries of Central and Eastern Europe. The foreseen investment will amount to approx. EUR 15 million, and will constitute the first step to further capital engagement, including the possibility to take over a majority share in the future. The investment will allow to gain a significant position in providing warehouse data transmission services in this region of Europe, and to build a new-generation truly international telecommunications operator.
  3. Extension of the operator infrastructure, mainly by adding next fiber optic lines in towns, and extending the network backbone from 1 Gbps to 10 Gbps. The expenses are estimated at approx. PLN 55 million.
  4. Building technology platforms for network content distribution services, and infrastructure for providing innovative subsidiary services (mainly mPay and Cineman). The expenses are estimated at approx. PLN 30 million.
  5. Payment for the shares taken up in KLK Technologie Informatyczne Sp. z o.o. worth PLN 14,960,000
  6. Acquiring the shares in Sputnik Software Sp. z o.o. for PLN 3 million.

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