Point Group

In Q1 2009, sales revenue of Platforma Mediowa Point Group Capital Group increased to the amount of 16,419,000 PLN. This means nearly a one-fourth growth (23 per cent) in comparison to the revenue recorded in Q1 2008. Net profit for the parent company amounted to 11,568,000 PLN and was several times higher than profit in the corresponding period in 2008 (377 per cent).

On the other hand, gross profit on sales was lower than in 2008 - it amounted to 5,601,000 PLN in comparison to 8,568,000 PLN in Q1 2008. This is a result of the increased cost of sales at the higher demand for lending funds for business activities of some customers.

Increased number of orders in the sector of marketing services as well as valuation of trademarks owned by PMPG and Media Point Group Sp. z o.o. carried out by Ernst&Young contributed to the net profit in Q1 2009.

"Considering current economic slowdown and seasonality in media and advertising businesses which usually result in lower performance in the first quarter in comparison to consecutive periods, we have invested our time in the acquisition of materials contracts enabling us to continue our growth. Diversification of the portfolio of services enables us to compensate a reduced revenue in one segment with a growth in another. Therefore, in my opinion, the first quarter was a good warm up before the fight for implementation of PMPG's plans" - commented Michał M. Lisiecki, President of Platforma Mediowa Point Group.

The company will take a stance on forecasts from the beginning of 2008 after the end of H1 2009. "Until present, our performance does not necessitate adjustments of the forecasts. After the first quarter, net profit exceeded 30 per cent of the forecasted performance, however its structure has undergone some changes. Currently, we have closely followed signals from the market" - emphasizes Lisiecki. In his opinion, 40 percent sales growth is possible owing to contracts acquired in the first quarter and the initiated optimization of costs within PMPG SA Capital Group as well as reduction of general management board costs.

Most important events for PMPG Capital Group in Q1 2009:

PMPG SA:

Changes in the composition of PMPG SA Supervisory Board.

Jarosław Pachowski, Marek Jakubczyk and Piotr Żochowski were appointed new members of the Supervisory Board of Platforma Mediowa Point Group. They replaced foreign SB members, Giuseppe Mirante and David Williams, and Krzysztof Feluch. Changes in the composition of the Supervisory Board were approved by the Extraordinary General Shareholders' Meeting on February 13, 2009. Between 2002-2005, Jarosław Pachowski acted as the President of the Management Board of Polkomtel SA, operator of Plus mobile network. Between 1998-2002, he acted as the V-ce President of the Management Board of TVP SA (Polish Television), and before that, as the Chairman of its Supervisory Board. Marek Jakubczyk is a partner at Tigon Capital Limited where he is responsible for the Polish and Ukrainian markets as well as markets of the Baltic states; moreover, he acts as the chairman of Supervisory Boards of Bydgoszcz Airport and Mazowiecki Port Lotniczy in Sochaczew. Piotr Żochowski acts as a financial director and V-ce President of the Management Board in charge of financial affairs at Pioneer Pekao Towarzystwo Funduszy Inwestycyjnych S.A.

PMPG SA as a constituent of sWIG80.

After session on March 20, 2009, Platforma Mediowa Point Group SA became a constituent of sWIG80 index. Thus, PMPG SA was found among 140 largest and most recognizable companies on the Warsaw Stock Exchange. Entering of companies onto the list of constituents of WIG20, mWIG40 and sWIG80 indexes is based on the ranking of these indexes prepared after the last session in January, which considers turnover for the last 12 months and free trading capitalization as at the ranking date.

PMPG SA in the ranking of best investment projects.

Moreover, Platforma Mediowa Point Group SA was added to the list of the most successful investment projects in 2008, drawn up by Parkiet Stock Exchange magazine. PMPG SA took the fifth position in the ranking of small enterprises with the highest return on investment. In the review of WIG Media index for the same period, PMPG occupied the second position. PMPG market capitalization at the end of 2008 reached 200 million PLN, and return on investment amounted to 4.3 per cent. This translated into the fifth result among companies with capitalization ranging from 100 to 500 million PLN. In WIG Media ranking, PMPG SA comprised one of only two companies which have not suffered a fall.

MEDIA:

PMPG SA's involvement in privatization of PW Rzeczpospolita.

In March, Platforma Mediowa Point Group submitted to the Ministry of Treasury its bid to buy shares in Przedsiębiorstwo Wydawnicze Rzeczpospolita which holds, among others, 49% of shares in Presspublica, the publisher of "Rzeczpospolita" and "Parkiet" daily newspapers. Beside PMPG SA, a bid to purchase PWR was submitted by Zjednoczone Przedsiębiorstwa Rozrywkowe. Final bid after PWR due diligence was lower than anticipated in initial PMPG SA estimates. Due diligence revealed a whole range of risks related to the purchase of PWR, emphasized Michał M. Lisiecki, PMPG President. Lower price was to protect PMPG's shareholders against effects of these risks.
In April 2009, PMPG SA submitted to the Ministry a request to amend the schedule of privatization proceedings, as a reason giving changes in the company undergoing privatization and information about poor financial standing of PWR. At the same time, the company signed a confidentiality agreement with Presspublica sp. z o.o. regarding possible due diligence of this company. The agreement was concluded as a result of talks regarding acquisition of shares in Presspublica from Mecom investment fund.

NEW MEDIA:

PMPG purchased shares in One Group and continues to extend its portfolio of lifestyle websites.

In January, Platforma Mediowa Point Group SA signed investment conditions with One Group, the publisher of celebrities gossip and lifestyle websites. Thus, PMPG SA's portfolio of web sites was extended by social network services such as Ukaraj.pl and Bulvar.pl. In line with the conditions, PMPG acquired 40.3 per cent of shares in One Group with an option to increase its share to 70.3 per cent within 12 months from signing the conditions. Kulisy.pl launched in August 2008 was also sold to One Group.

PMPG increases its share in Index Copernicus International SA.

In March, PMPG SA made a subscription for shares in Index Copernicus International SA (NC: INDEXCOP - ICI), which after allocation shall result in the acquisition of 2,440,428 G shares in ICI, which accounts for 36.53 % of the share capital of the company. Until that time, in line with investment agreements entered into in the third quarter of 2008, PMPG SA acted as ICI's strategic investor and held shares accounting for 24.49% of the share capital of Index Copernicus. Index Copernicus is a global web portal dedicated to science which collects, systematizes and evaluates scientific resources.