ITI Group enters the second half of year 2007 on a strong basis

Digital Platform – Continues steady upward trend

ITI Neovision (“n”): The ITI Group launched on 12 October 2006 through ITI Neovision “n” Poland’s new generation digital platform. In the first half of 2007, “n” contributed to ITI Group revenues EURO 10,200 and generated negative EBITDA of EURO (20,095). “n” is being shown as activity under development reflecting the early stage development of the project.

Since its roll-out, “n” has been delivering strong results in line with its business plan and by the end of the second quarter had a subscriber base exceeding 150,000. In addition to good performance, within the first half of 2007 “n” launched several new services including HD channels, Internet browser, Internet nRadio, VoD, EPG with many of them being introduced for the first time on the Polish market. Furthermore, the programme offering has been constantly enriched with new channels addressing broader target groups.

In January 2007, “n” subscribers were introduced to two new sport channels – SportKlub and SportKlub+. 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 a televised football match in HD quality to Poland for the first time. The games featured were the Polish Cup quarter finals. In the same month, UEFA Cup matches 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.

In June 2007, “n” platform launched sport.onet.pl, – an excellent example of synergies creation within the ITI Group. The service applies “lajt” technology, which was originally introduced by Onet.pl for the portal’s special version optimized for mobile equipment (OnetLajt). Both structure and navigation of the Sport.onet.pl Lajt service are designed for ease of use through the “n” remote control. Sport.onet.pl Lajt is available free of charge to all nSport channel subscribers. Additional OnetLajt services for the “n” platform are under preparation.

In addition, “n” is developing two new channels – KidsCo and Da Vinci. KidsCo has been designed to address the youngest viewers – kids of the kindergarten age (3-7 years). The program offers mainly European productions accounting for cultural differences between countries in which it is transmitted. KidsCo is planned to be available on the platform in September 2007. Da Vinci (a working name of the channel) will refer to the best tradition of educational television – in a fascinating, hilarious and accessible way it will introduce young viewers into the world of education. A special premium will be put on physics, chemistry, mathematics, history and geography. The channel will be available on the platform in September 2007.