Dividend payment

During 2009 and up to the date of publication of the Q4 2009 report, 1 March 2010, Multimedia Polska S.A. did not declare any dividend payments or prepayments towards dividend.

Decisions regarding any future dividend payments will depend on the Company’s financial condition, including results of operations, the necessity to incur capital expenditures, availability of capital reserves and other matters that management may consider relevant. The Company’s senior credit facility, extended pursuant to the agreement dated 7 December 2009, restricts the Company from declaring or paying dividends under certain conditions.

Dividend fund

On 11 August 2008, pursuant to Resolution no. 5, the Extraordinary General Meeting of the Company resolved to create a special purpose reserve fund devoted to dividend payment (“Dividend Fund”) and transferred to the Dividend Fund:

1. from supplementary capital: (i) previous years’ profit of PLN 62,183,135.04 and (ii) other amounts which arose in previous years, other than profits, amounting to PLN 149,541,992.96;
2. an amount of PLN 1,305,326.80 from reserve capital which arose as a result of 2007 dividend payment.

On 19 January 2009, the Company’s General Meeting passed resolution no. 4 pursuant to which PLN 8,500,000 (eight million five hundred thousand) was transferred from the Dividend Fund to a newly-established reserve fund designated for the purpose of repurchasing shares to offer them to Company employees.

As at 13 May 2009, the aggregate amount accumulated on the Dividend Fund was PLN 204,530,454.80.