Acquisition by Telefonia DIALOG S.A. of shares in the company Tele Video Media Sp. z o.o.

Friday, 04 August, 2006

The Management Board of KGHM Polska Miedź S.A. announces that 4 August 2006 Telefonia DIALOG S.A. (a subsidiary of KGHM Polska Miedź S.A.) acquired from the company ATM GRUPA S.A. with its registered head office in Bielany Wrocławskie – based on an agreement entered into on 4 August 2006 for the acquisition of shares – 100% of the shares of the company Tele Video Media Sp. z o.o. with its registered head office in Bielany Wrocławskie.

The share capital of Tele Video Media Sp. z o.o amounts to PLN 800 thousand and is divided into 1 600 shares, fully and properly paid, equal and indivisible, having a face value of PLN 500 each. The acquisition price for 100% of the shares having a total nominal value of PLN 800 thousand amounts to PLN 1 642 thousand. The carrying value of these assets in the accounts of Telefonia DIALOG S.A. amounts to PLN 1 642 thousand.

The acquisition of these assets was financed using the internal funds of Telefonia DIALOG S.A.

The assets acquired are of a long-term, equity investment nature.

There are no relations between the management and supervisory personnel of KGHM Polska Miedź S.A. and the seller of the shares.

The criteria used for describing the assets as significant is that the financial assets acquired by Telefonia DIALOG S.A. exceed 20% of the share capital of Tele Video Media Sp. z o.o.

The subject of activities of Tele Video Media Sp. z o.o. includes activities related to the film and video industries, radio and television activities, telecommunications and IT. 

Legal basis: § 5 section 1 point 1 of the Decree of the Minister of Finance dated 19 October 2005 regarding current and periodic information published by issuers of securities (Journal of Laws from 2005 Nr 209, item 1744)