Our Ordinary Annual Shareholders' Meeting, held on July 4, 2008, approved a resolution on the dividend policy, stating that it is our intention to pay a dividend of 33% to 66% of the net profit for the year. The dividend payment which will depend on the achieved profits, financial situation, existing liabilities (including restrictions as stipulated in the loan agreements), possibility of disposition of capital reserves, assessment performed by the Management Board and the Supervisory Board of our development perspectives in a specific market situation, as well as the need of cash resources in pursuit of our superior target, which is further growth, especially through the acquisitions and new projects.

On May 19, 2011, the General Meeting, taking into consideration the recommendation of the Management Board and the economic situation of the Company, decided to allocate the net profit for the financial year 2010 entirely to reserve capital.

The Management Board justified its recommendation by the need of future service of the debt incurred by the Company to purchase 100% shares of Telewizja Polsat. The reduction of indebtedness of the Company, planned by the Management Board, and thereby reduction of the net debt/EBITDA ratio, will reduce interest charges arising from the signed loan agreements, and thus will have a positive impact on the Company's financial standing.

Decreasing our debt in the shortest possible term is a part of our strategy, and as a result and in accordance with the provisions of Senior Facilities Agreements, the Management Board can consider the payment of dividend when net debt/EBITDA ratio is less than 2x.