Notes to the Consolidated Quarterly Report for the First Quarter of 2009

Notes to the consolidated quarterly report for the first quarter of 2009 I. Accounting rules The Group's consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) and on the basis of historic cost. The financial statements present amounts in thousand PLN. II. Key changes to estimates, including corrections due to provisions, deferred income tax provisions and assets, and adjustment deductions to assets The Group established: Provisions for future payables: PLN 1 023,000 Usunięto: 621,000 Provisions for remuneration under specific work contracts: PLN 1 205,000 Deferred income tax provision: PLN 793,000 Deferred income tax assets: PLN 609,000 Estimation of income based on contracts made proportionally to costs borne: PLN 12,441,000. The Group released: Provisions for future trade payables: PLN 1,079,000 Provisions for remuneration under specific work contracts: PLN 624,000 Deferred income tax provision: PLN 925,000 Deferred income tax assets: PLN 915,000 Estimation of income based on contracts made proportionally to costs borne: PLN 6,830,000. III. Brief description of key achievements and failures of the issuer during the reporting period, including the list of key events relating thereto The first quarter of 2009 saw high levels of investment, especially in modern television equipment. Due to the growing digitization of the media and changing technologies of television production, it is necessary to gradually replace old equipment to ensure that the quality of the Group’s programming is as high as possible. In the period in question, ATM Grupa S.A. acquired lighting equipment for a new shooting stage in Bielany Wrocławskie, a ProStar multi-module LED projection screen, a performance stage, XDCAM-HD Professional cameras, telephoto lenses, and other equipment. In addition, in mid-February 2009 ATM Grupa S.A. acquired a PLN 20 million High Definition truck. The HD truck makes it possible to produce ground-breaking television and film productions, makes it much easier to work with television broadcasters, and enables the company to single-handedly undertake major projects such as concerts, live broadcasts of sports events, and other outdoor events. The TV truck and other equipment are part of a bigger, already completed project called “The Advanced, Fully Equipped Film and Television Studio Based Around XDCAM HD,” which was partly funded with EU money under an Operational Sectoral Programme called “Improvement of the Competitiveness of Enterprises.” (the company disclosed this information in the current reports No. 30/2008 of 31 December 2008 and No. 1/2009 of 5 January 2009). Due to the digitization of TV broadcasting, the number of new nationwide channels of terrestrial television is expected to grow. We expect new broadcasters and thematic channels to enter the market. This might generate new customers for our television products. To meet the new demand, the ATM Capital Group is expanding its production 1 WorldReginfo - 738dcbbe-546e-481c-b173-0c316367f54a capabilities not only by acquiring new professional equipment, but by building new television studios (planned development projects in Warsaw and Gdańsk). Currently the ATM Capital Group is the only Polish television producer (which is not a television broadcaster) that owns advanced and complete production facilities. This significantly increases the Group’s competitive advantage over other television production companies operating in Poland, and has a major impact on the Group’s revenue levels and its market position. In late March and early April, ATM Grupa S.A. attended MIPTV, the international film and programme market for television held in Cannes, the most important such event in Europe, and one of the most important in the world. The company is the only Polish independent TV producer to have exhibited at the event since 2002 and sell its formats to foreign buyers. This year it presented productions such as First Love, The Kiepskis’ World, Prime Minister, and the game shows Clueless and Cash Battle. New additions to the ATM Group’s portfolio included the web series Klatka B and Pitu Pitu, produced by the Group’s subsidiary A2 Multimedia Sp. z o.o. In addition, the Cannes market is a perfect opportunity to buy foreign licenses and options for formats popular in other countries, to assess the current state of the industry, and to learn about new trends and technologies. As the Group is creating a “programming library,” a database of material for producing new formats (based on the Group’s own ideas—a script database, and foreign licenses), a presence at the market is an important part of the company’s annual calendar. The first quarter of 2009 also brought a continuation of well-known and loved series, which have strong positions in the schedules of television channels, including First Love, Złotopolscy, and The Ranch, based on original ideas of their producers: ATM Grupa, M.T.ART, and Studio A, respectively. In addition, the reporting period saw the launch of a new game show, Moment Prawdy [The Moment of Truth], and the taping of a new series, The Dancers (Tancerze). Both productions are based on foreign formats. Despite the current macroeconomic situation, with the economic slowdown having a significant impact on decreasing sales and worse results of many companies, the ATM Capital Group’s sales revenue was higher than in the same period of 2008. The Group’s EBITDA was also good—it grew by 13.1% over Q1 2008. Other key events of the first quarter of 2009, arranged chronologically, include: 1. On 5 January, 2009 Studio A and Polskie Media S.A. (TV 4) signed a new annex to the production contract of 25 September, 2007 to produce 39 episodes of Happy Hour. 2. On 6 January, 2009 ATM Grupa S.A. and Polskie Media S.A. (TV 4) signed an annex to the production contract of 1 September, 2008 to produce 16 new episodes of Kłamczuch. 3. On 15 January, 2009 ATM Grupa S.A. and Telewizja Polsat S.A. signed a contract to produce a pilot of the game show tentatively titled Pan i Pani. 4. ATM Grupa S.A. co-produced the prestigious film production The Karamazovs, directed by Peter Zelenka. 5. ATM Grupa S.A. finished taping the first season of the new game show Moment prawdy, based on a foreign license of The Moment of Truth. 6. Studio A was named to the Forbes’ Diamonds List 2009. The list includes companies that have shown the highest growth over the past three years. Studio A ranked first in the Mazovian list of companies with revenues between PLN 5 and 50 million. The Forbes’ Diamonds List is a prestigious list of Polish companies compiled by the Forbes magazine in conjunction with the credit ratings agency Dun & Bradstreet. Sformatowano: Angielski (Wielka Brytania), Wyróżnienie 2 WorldReginfo - 738dcbbe-546e-481c-b173-0c316367f54a IV. Description of factors and events, including in particular untypical ones, Usunięto: ¶ having a significant impact on the company's financial results In the first quarter of 2009 the consolidated sales revenue totalled PLN 27.7 million, an increase by 18.5% on the same period of 2008, while EBITDA was 6,974 thousand PLN, up by 13.1%. Earnings can be broken down as follows: PLN 7.1 million in sales profit, PLN 3.8 million in operating profit, and PLN 3.5 million in net earnings (in Q1 2008 the figures were, respectively, PLN 7.4 million, PLN 4.2 million, and PLN 4.3 million). Key figures used to assess the Group's profitability are presented in the following table. Usunięto: 1-st Table 1. Selected financial data for four quarters of 2008 and 2007 Usunięto: 4 1st quarter of 2008 1st quarter of 2008 Usunięto: 7 from 01.01.2009 from 01.01.2008 Usunięto: 7 DESCRIPTION to 31.03.2009 to 31.03.2008 Usunięto: 12 (PLN '000) (PLN '000) Usunięto: 7 Net sales 27 765 23 436 Usunięto: 114 494 Movement 18,5% Usunięto: 117 191 Profit on sales 7 091 7 467 Usunięto: -2.3 Movement -5.0% Usunięto: 36 173 Margin 25,5% 31.9% Usunięto: 39 334 Profit on operating activities 3 815 4 202 Usunięto: 8 Movement -9,2% Usunięto: 31.6 Margin 13.7% 17.9% Usunięto: 3 Usunięto: 6 EBITDA 6 974 6 167 Usunięto: 19 933 Movement -13,1% Usunięto: 27 943 Margin 25.1% 26,3% Usunięto: 28.7 Net profit 3 526 4 335 Usunięto: 7 Movement -18.7% Usunięto: 4 Margin 12,7% 18,5% Usunięto: 23 Usunięto: 8 As compared to the first quarter of 2008, there was an increase in indirect production Usunięto: 29 costs due to higher amortization levels. As a result, the sales margin was 25.5%, down by 5% over the first quarter of 2008. This is mainly due to investment activities of the Usunięto: 022 parent company, ATM Grupa S.A. As a result of the expansion of the Group’s production Usunięto: 36 050 capabilities (new studio, acquisition of television equipment), there was an increase in Usunięto: 19.5 fixed costs, which led to the reduction of profits and margins in the profit and loss Usunięto: 3 account. Usunięto: 30.8 Notwithstanding, the Management Board sees investment as a priority, as it prepares the Usunięto: 20 537 ATM Group to adopt to the current and future changes taking place in the media industry Usunięto: 24 735 (HD broadcast, digitization of television channels, mobile television), and enables it to Usunięto: 7 take part in large-budget international productions. Currently, the economic situation is favourable to the investment strategy pursued by ATM Group companies (lower prices of Usunięto: 0 construction and construction materials, favourable conditions for further consolidation of Usunięto: 7 the production market), but it also translates to smaller and more cautious orders from Usunięto: .

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