Poland - ITI Group First Quarter 2007 Results

Digital Platform – Strong start and positive outlook

ITI Neovision (“n”): The ITI Group launched on 12 October 2006 through ITI Neovision “n” Poland’s new generation digital platform. For the first three months of 2007, “n” showed strong performance and delivered results in line with its business plan and by mid May had a subscriber base exceeding 140,000. The platform generated revenues of EURO 4,569 and negative EBITDA of EURO (9,342). “n” is being shown as activity under development reflecting the early stage development of the project.

“n” television was the first to bring the new HDTV quality into play providing its viewers with a higher resolution, panoramic picture, surround sound and impressions never experienced before. In December, “n” television viewers became the first in Poland to receive a film channel transmitted entirely in High Definition – MGM HD and the VOD service – films and programmes on demand. In January 2007, “n” subscribers witnessed two further new arrivals – SportKlub and SportKlub+ sports channels. March saw the development of “n” VOD. For the first time in Poland, even in Europe, it was possible to see films in HD quality within a VOD service. April brought football matches in HD quality to Poland for the first time by broadcasting live the Polish Cup quarter finals. In the same month, the final rounds of the UEFA Cup were broadcast simultaneous for the first time in Poland. For that particular purpose, “n” television launched alternative services allowing viewers to watch a number of games live at the same time.

The thematic blog, which was visited by 270,000 users in the first month of “n”s sale alone, is an element contributing significantly to the development of the “n” community through the use of the Internet. On top of that, three weeks after the launch of “n” on 2 November, a forum was also launched, which today constitutes a communication platform and a rich source of knowledge. It has 4,200 registered users and the number is still growing every day.

Subscribers of the new generation television “n” will soon be introduced to the new features and services of n television: an Internet browser, Internet nRadio and a new version of the EPG.

“n” continues to expand its channel line up and is to introduce a number of new and unique channels by September 2007. The News and Information package will be broadened by the adding the “Religious Channel”, the Kids package will be expanded by adding “KidsCo” targeted towards the 3 to 7 year old and “Da Vinci” a teenage eduction channel. The Style package will be complemented by “nTalk” and O.TV, hosted by the well known Jurek Owsiak. The VOD offering will be expanded launching in cooperation with NBC Universals the “Picture Box” providing a broad selection of the most recent Hollywood hits as well as classics.