Our primary objective is to become the number one player in the Polish entertainment market. We intend to achieve this goal both by providing high quality products and services to individual customers, and by acquiring and creating the programming content of superior quality to be subsequently delivered to Polish households.

The key elements of our strategy include:

• Building value of our individual customer base by increasing the number of subscribers, increasing the average revenue per user (ARPU), as well as by maintaining high levels of customer satisfaction
• Creating value of our Broadcasting and television production segment by keeping high audience shares of our channels, upgrading the viewers profile, as well as by widespread distribution of our content
• Effective management of our cost base by making use of synergy effects achieved across our integrated media group

Building value of our individual customer base by increasing the number of subscribers, increasing the average revenue per user (ARPU), as well as by maintaining high levels of customer satisfaction

Since the beginning of our operations, we have managed to achieve significant revenue growth in our Retail business segment and we plan to further increase our revenues and market share through miscellaneous marketing activities targeted at our existing and future subscribers. We intend to leverage on the expected increase in consumer spending driven by overall economic growth in Poland, enabling us to gain even more new subscribers to our DTH services and to benefit from the migration of our existing subscribers to packages that generate higher ARPU. In order to uplift our ARPU, both in the group of existing and potential subscribers, we have undertaken many initiatives including the launch of attractive program packages featuring HD channels and the provision of a wide range of additional services, such as VOD/PPV, catch-up TV, and Multiroom.

Concurrently, we are trying to attract the maximum possible number of customers for our mobile broadband Internet access which, according to independent experts, is the fastest growing web access service in Poland. We believe that mobile technology will allow us to offer high quality services in areas inhabited by the majority of our customers which, in combination with the multi-play offer benefits, should help improve the satisfaction of our subscribers and bring further increases in ARPU.

In our opinion, the integrated services market in Poland is still poorly developed outside big cities and, therefore, it will grow rapidly in the future. Additionally, own multi-play services are not offered by any of our competitors in the DTH market, making us the only DTH operator that offers high quality Internet access services in low-urbanized areas. We believe that the provision of integrated services will continue to be our competitive advantage not only in the DTH market but, in the future, throughout the pay television market and it will stand as an important element of our strategy.

Creating value of our Broadcasting and television production segment by keeping high audience shares of our channels and enhancing the viewers profile

The TV channels produced and broadcasted by the Polsat Group have a strong and stable position in the Polish television market and enjoy a high target audience. At present we air 15 Polsat-brand channels addressing most of the target groups among the Polish audience. Our goal is to keep the audience shares at a stable level and consistently improve the viewers profile. We believe that reasonable investments in our programming content as well as wide distribution of our channels will help gradually improve the profile of our audience, which in turn will have a positive impact on the prices of our advertising airtime.

The second important element in enhancing the value of our Broadcasting and television production segment is the widest possible distribution of our self-produced channels, within both the FTA and pay-TV models. We believe that by extending the reach of our channels we will be able to attract more audience as well as boost revenues derived from the distribution of our channels by pay-TV operators.

Effective management of our cost base by making use of synergy effects achieved across our integrated media group

The process of integration of a media group opens up good opportunities to achieve measurable synergy effects and gain significant competitive advantages. For this purpose we have identified several areas of our cost base to be managed at the Group level: (i) cross-promotion and marketing activities, enabling us to promote our program packages, multi-play offer and Polsat Television channels through our various media platforms, including pay TV, VOD, broadband Internet and mobile telephony; (ii) technological synergies, enabling us to use our satellite equipment more efficiently, optimize our hardware and software systems, and benefit from synergies in back-up solutions for the broadcasting center; (iii) benefits on the acquisition of programming content for the entire integrated platform, and strengthening of the bargaining power of our combined businesses; and (iv) synergies associated with our administrative facilities, providing benefits from large-scale operations of our combined businesses and opportunities for sharing of effective solutions.