When August turns to September, 2007, a new market called NewConnect will open on the Warsaw Stock Exchange (WSE). It will support the trading of shares of small and medium-sized companies.

The expectation is that issuers entering this new market will not be large companies (of market capitalization around PLN 20–30 million and with a public offer value from PLN several hundred thousand to several million). The buyers are expected to be private funds (venture

capital and private equity), other specialised funds, private investors and individual investors with a taste for higher investment risk.

From the WSE’s point of view, the NewConnect market will be attractive for business people, who require a source of competitive financing and it should create conditions aiding the financing of small businesses and for the development of new technology firms. These will

provide an opportunity for cashing in on the results of scientific research and will set up a framework for providing stimulating work for young scientists and engineers.

It is expected that the new market will promote firms, which are too small or too young to exist on the main WSE market.

The purpose behind the NewConnect market is to enable many small but rapidly-developing companies to launch their stock market careers. Companies on the new market will have lesser information requirements, such as they will not have to provide quarterly reports and

prices will be quoted on the market from 10.00 am to 2.00 pm, Monday to Friday.

To be quoted on the NewConnect market, requires meeting the following conditions:

·          conclusion of an agreement with an authorized adviser from the list maintained by WSE and a market animator or a market maker

·          offers below EUR 2.5 million require a several page investor information document approved by an authorised adviser and the WSE. A share issue prospectus or information memorandum approved by the Polish Financial Supervision Authority will be necessary for higher value issues.

Trading of shares on NewConnect will start five working days after all the conditions have been met. NewConnect has established a network of authorized advisers who will support companies in their listing at NewConnect. An authorised adviser may be an investment firm or a professional services firm. The role of an adviser will be to help the issuer prepare an admission document, followed by securing its approval. From the date of the company’s launch on the market, the adviser will support the issuer for at least one year in fulfilling the information obligations and will advise the company on its functioning on the NewConnect market. Good cooperation with the Authorised Adviser will increase the chances of the firm

gaining a good price on the market. The New Connect market’s Authorised Advisers will only

be those firms which have gained authorisation from the Warsaw Stock Exchange and have been placed on the Exchange’s Authorised Advisers list. One of these authorised advisers will be the law firm Wardynski & Partners.

In the event of questions, please contact:

Danuta Pajewska

[email protected]

Tel. +48 22 537 82 00