Market opportunities We believe that is an attractive market for our products and services for a number of reasons. We present the key reasons below. Strength of the Polish Economy. Growth in our revenue is linked to the state of the Polish economy. Poland has one of the highest GDP growth rates of any European Union member state. In 2010, Poland’s GDP increased by 3.8% while GDP of the European Union increased by only 1.8%. In 2009, Poland’s GDP increased by approximately 1.6% while GDP of the European Union decreased by approximately 4.3%. For 2011 and 2012, Poland’s GDP is forecast to increase by 4.0% and 3.7%, respectively. We believe that average consumer spending, including spending on pay TV, Internet access and mobile telephony services generally will vary in line with the overall GDP growth in Poland, and will support our future revenue growth. Additionally, changes in the economic environment in Poland have historically had a significant impact on advertising spending, and, as a result, on the results of TV operations and thus it will have impact on the consolidated results of Group.

Penetration rate of pay in Poland. According to our best knowledge, a large percentage of households in Poland have a television set, but do not use subscription television services. In 2010, subscription television services were provided to 10.9 million subscribers, out of which about 0.5 million used more than one pay‐TV service. Assuming there are 14,5 million households in Poland, the market penetration rate amounts to less than 72% of all households, which is lower than in highly developed markets such as Belgium, the Netherlands, Norway and Denmark, where according to Informa, the penetration rate is above 90%. We believe that the estimated pay TV penetration rate in Poland indicates potential for further growth in the Polish pay TV market over the next few years. Less‐developed and rural areas of Poland are currently underserved and underrepresented in the pay TV market and the increasing attractiveness of DTH to Polish consumers will allow DTH providers to capitalize on the significant room for growth in the Polish pay TV market. Consolidation of DTH market. There are four operators on the Polish satellite digital pay television market. On the more developed Western European markets, where consolidation processes are finished, most of the countries have only one digital satellite platform. We believe that the Polish DTH market will follow the trends observed in other European countries and will consolidate, and as the largest player in this market we will be the consolidator. A larger, consolidated entity may have access to greater financial and marketing resources, may benefit from the economies of scale, operating and financial synergies and, if successful, capture a larger share of the markets in which it operates.

Development of advertising market in Poland. We believe that the TV advertising market will benefit from structural growth resulting from forecasted increasing disposable income of the Polish consumer. According to Starlink forecasts in 2011 total net advertising expenditure in Poland should grow by approximately 5%. We believe TV is a highly effective advertising medium, and given the relatively low level of advertising expenditures in Poland as a percentage of GDP and per capita in comparison to other European markets that there is substantial growth potential for TV advertising in Poland. Development of Internet market in Poland. By international standards, Poland ranks relatively low in Mobile and Fixed broadband penetration, underlining the prospects of the market. By 2015, the market is expected to have grown to 9.5m households (CAGR 26%). A key driver will be the flexibility of mobile solutions and the low infrastructure cost, which is of particular importance in rural areas where Cyfrowy Polsat has its areas of strength. Penetration of integrated services in low‐urbanized areas. Multi‐play services in Poland are typically provided by cable TV operators and telecommunications service providers over their fixed line networks. Both cable TV operators and telecommunications service providers offer their services mainly in large and medium‐sized cities, due in part to the geographical limitations of their infrastructure and the quality of the overall telecommunications infrastructure in Poland. The multi‐play services market in Poland is underdeveloped in less densely populated areas and therefore has the potential to grow rapidly in suburbs, small towns and rural areas where these services are currently practically non‐existent. In addition to the low penetration rate of multi‐play services in less densely populated areas, Internet services provided by fixed‐line operators typically suffer in quality of service due to the severe limitations of the established infrastructure throughout Poland. This creates an opportunity for DTH providers, such as Cyfrowy Polsat, who do not have the same geographic and fixed network infrastructure limitations as cable TV operators and telecommunications service providers, to become the principal providers of high quality multi‐play services to consumers in suburbs, small towns and rural areas in Poland. High Average Television Viewing Time. The Polish TV market is characterized by high average daily TV viewing time, which was approximately 245 minutes in 2010, an increase of five minutes in average daily TV viewing time compared to 2009. The high average TV viewing time and the stability of the TV advertising market in Poland support the potential for increases in net TV advertising expenditures in Poland and are likely to translate into higher revenue in the Polish TV market. Additionally, we believe that the high average daily television viewing rates contribute to development of our DTH business.

Growing importance of thematic channels. A key trend to emerge on TV market in Poland over the past several years is the increasing importance of thematic TV channels. Thematic channels are TV channels specializing in a particular genre of programming, such as children’s programming, films, sports, weather, news or documentaries. Non‐FTA TV channels in Poland represented 32% of the viewing share in 2010 compared to 28% of the viewing share in 2009. This trend is expected to continue with some industry experts forecasting that thematic TV channels may eventually have a higher audience share than non‐thematic TV channels. Those with access to thematic channels and integrated media platforms can potentially leverage the niche programming content with targeted and optimized advertising. Development prospectus

Development prospects of our Retail business segment

As a result of our satellite TV transmission and infrastructure‐light approach to mobile telephony and broadband Internet, we are able to access less‐densely populated and rural areas of Poland at much lower cost than cable TV and Internet providers. Therefore, we believe we are well positioned to continue to capitalize on the growing demand for pay TV in Poland. Of the three leading DTH providers in Poland, we are the only operator that provides multi‐play services. We further believe that our introduction of our DTH, mobile telephony and broadband Internet multi‐play offer places us in a strong position to benefit from the continued growth in the Polish pay TV market. We believe we can leverage the strength of the Cyfrowy Polsat brand name and access to our large existing DTH subscriber base to expand the sales of our telephony and broadband Internet services as well as our multi‐play services.

By introducing a range of integrated services we became the only provider offering integrated services to residents of suburbs, small towns and rural areas. For many of these households we will be the only, or the second, in addition to the mobile service providers, supplier of internet access. We believe that as a result of the low saturation of integrated services and poor quality of internet access services offered in low‐urbanized areas, our offer will be attractive to our existing satellite pay television subscribers and potential customers of integrated services.

We plan to use the growth potential of the internet market and offer innovative solutions for Internet access in increasingly wider area of Poland. In March 2011, we began testing commercial broadband Internet access based on the LTE technology, which we believe will be an important technology for the future of mobile broadband Internet and the successor to the commonly used UMTS standard. An LTE mobile connection can offer a maximum speed of up to 150 Mb/s. Recently, upon satisfactory test results, we launched commercial sale of LTE services, which makes us the first Internet provider to offer this technology in Poland. We believe, that it will provide us with a significant competitive advantage over our competitors. Due to its technical characteristics and quality parameters, Cyfrowy Polsat mobile Internet LTE can eventually replace fixed‐line Internet and satisfy increasingly demanding customers while enabling them to profit from growing capabilities of the Internet. At the same time, mobility, that becomes increasingly important to customers, works to the advantage of Cyfrowy Polsat Internet service. The potential of the latest technology mobile Internet is based on capacity, speed and low latency. Differences are easily noticed. To compare – download of full‐length HD movie from UMTS network takes around 2 hours while from HSPA+ network less than 1 hour, and from LTE network it would only take a few minutes. All this enables LTE Internet service customers to use interactive and multimedia applications requiring high bandwidth and transmission in real time, as online games, video communication and high‐definition television through Internet. Development prospects of our TV broadcasting and production segment As a leading TV broadcaster, we believe we are in a strong position to capitalize on the expected growth in the Polish TV advertising market as the economic recovery continues and on the structural increase in the size of the advertising market that we believe should result from growing disposable income of Polish consumers over the medium to long term. In TV broadcasting, we are one of the two leading private TV groups in Poland in terms of audience share, one of the two leading private TV broadcasters in terms of revenue and advertising market share and the third largest broadcaster in Poland in terms of audience share for 2010. Based on data from Starlink, we estimate that we captured a 22% share of the approximately PLN 3.84 billion Polish TV advertising market and had the second highest power ratio in 2010 among our key competitors.

As the audience share of thematic channels has been continually growing in Poland, we have focused on launching thematic channels in order to maintain total audience share and ensure continued sufficient growth in advertising revenue. We have launched 12 thematic channels (seven in the past three years), which have been growing rapidly in audience share. We believe that our thematic channels still have significant growth potential as the average subscription portfolio of our thematic channels is available in only approximately 50% of pay TV subscriber households in Poland. We believe the low penetration rate is due to the relatively recent launch of the vast majority of our thematic channels and their limited distribution mainly on our DTH platform in previous periods. Additionally, based on audience ratings for our thematic channels distributed on our DTH platform, our market share has reached almost 9% and we ranked as the most popular broadcaster in 2010. We believe that cooperation with cable TV operators as well as other DTH providers will increase the availability of our channels. We further believe that audience satisfaction with our thematic channel offerings is high and will continue to increase.

Going forward, we expect the Polish TV market to become increasingly fragmented. We believe we are in a position to capitalize on this fragmentation by strengthening our comprehensive channel offer for the whole family, building strong cable and satellite distribution of our channels through our Retail business segment, which operates the largest DTH platform in Poland, through Canal+Cyfrowy (the second largest DTH platform in Poland) and through “” platform with which we recently entered into a distribution agreements. We believe that our presence on all significant satellite platforms and our distribution by cable TV operators will increase technical coverage of our thematic channels, and, consequently, give us the opportunity to grow at least in line with the TV advertising market, and increase subscription fee revenue.