Review of operating and financial performance of EMF Group for the period ended 30 September 2006 and outlook for year-end November 15th,2006

2 We are the leading, independent regional lifestyle group... Key player on the lifestyle market Offering media and entertainment, toys and accessories, branded shoes and fashion products Active in wholesale trade in Poland and in the region Growing sales and stable margins Further growing into Poland and expanding internationally Operator of the largest network of retail stores in Poland During the first three quarters of 2006 sales grew by 20.9% year on year, gross margin amounted to 41% - an increase of 1.6% on prior year period. Operator of 283 retail outlets in Poland and 1 SMYK store in Germany*, totalling sqm of net retail area.* Marketing and distribution of leading cosmetics and optical brands in Poland, Slovakia and Czech Republic. Plans to open above 120 new stores in Poland in the near future, expanding into neighbouring countries, in particular Ukraine and Germany. Manager of the biggest portfolio of premium brands in the region Above 40 premium brands (including premium international - Zara, Boss, Esprit, Aldo, Mango, Mexx, Palmers, Chanel, Dior, Shiseido, Salvador Dali, Givenchy, Guerlain, Kenzo, Cerruti, etc. – and proprietary brands). * as at end of Sep’06, area provided excludes language schools network and includes Zara Polska.

3 …which manages a large portfolio of leading international and Polish brands... *On September 22, 2006, EMF signed an agreement to sell 100% in Galeria Centrum. *

4 … and consequently implements its strategy, based on four key pillars … Organic growth Internet sales International expansion Business model extension Organic growth

n/a n/a n/a Galeria Centrum 3Q Media & Entertainment Total *** Net retail area Outlets 1Q 20062Q 2006 Outlets EMPiK EMPiK Foto Language schools Smyk Franchised brands** * * * * 36 57n/a Fashion & Beauty Capex spent during the first three quarters of 2006 amounted to almost PLN 54 Mio. Net retail area * Total retail area of EMPiK and EMPiK Foto ** Including Zara Polska *** Excluding 29 stores in Ukraine, 50 Sephora Polska stores and 59 coffee bars operated by Coffeeheaven. Organic growth of existing business translates into further extension of network of outlets and retail area…

6 …further strengthening of key position in Poland and launching of international expansion… Source: Company

7 58.0% Galeria Centrum – LFL 2005 Media & Entertainment Growth rate 3Q 20053Q 2006 Growth rate EMPiK – LFL Franchise brands – LFL 11.5% Fashion & Beauty 41.4%Smyk – LFL EMPiK Retail Smyk Other Media & Entertainment Franchise brands Galeria Centrum Zara % Sales … and continued growth of sales, also in LFL 8.2% -0.3% 9.1% 2.4%

8 EMF continues its business model extension … New businesses in EMF subsidiaries 1. New brands in Ultimate Fashion: Spring, Palmers and Boss Shoes & Accessories 2. New brands in Optimum Distribution: SergioTacchini, Protest, Sun Valley & Bourjois, Matis, Ingrid Millet 3. New products in EMPIK: Coffee Bars, ticket sales, selling of services (e.g. language courses), selling of mobile equipment and services 4. New products in SMYK: Bear Factory concept development in Smyk existing chain 5. New products in language schools: courses for corporates and English for children (Kids Love English) Organic growth International expansion Internet sales Business model extension

9 … and managing of its portfolio Investment/Sales 1.Sale of Galeria Centrum Investment agreement with Vistula & Wólczanka S.A. signed on September 22nd Share price equal to PLN 10 Mio and repayment of debt of PLN 20.9 Mio plus accrued interest – in total PLN 30.9Mio 2. Reasons for sale GC operation too small to achieve quick profitability and lack of synergy with other group companies High estimated outlays to achieve the scale effect (ca PLN 50 MIO in course of the next two years) Net loss in 2006 (in spite of improved results) The sale will enable allocation of funds (ca PLN 80 MIO) and focus management on higher return projects.

10 Ukraine Empik signed an agreement to purchase, 65% in BUKVA (27 outlets all over Ukraine). In 2011 Empik can exercise call option and purchase the remaining 35%. Currently Empik is looking for the possibilities to open next 2-3 stores in SMYK signed an agreement to buy 65% in Paritet Service – owner of two “Kinderland” stores in Kiev (a brand of stores for mothers and children). In 2011 and 2012 Smyk can exercise call option and purchase the remaining 35%. Currently the stores are renovated to SMYK format. In 2007 next 2 to 3 outlets are planned to be opened. EMF plans to launch franchise operation in Ukraine ( e.g.. just extended franchise agreement with ALDO) Germany Pilot Smyk store was opened in Berlin in March A further 2 agreements for new stores in 2007 have been signed and additional 2 agreements are under negotiation. EMF continues its international expansion plan International expansion into the region

11 EMF Group further develops Internet sales Empik.com Launching Empik.com in the end of 2005 Fast development of EMPIK.com in 2006; at present over 2 MIO products available Currently EMPIK.com is one of 5 most frequently visited e-commerce websites in Poland (source: megapannel of PBI/Gemius) Empik.com has been awarded as the best store in its categories by WPROST in October 2006 Round PLN MIO sales expected in 2006 Important element of strategy in the existing stores (ordering system „info point”)

12 EMF financial results for the first three quarters of 2006* 3Q Q 2006 * bez perfumerii Sephora ** bez Zara Continuing operations Sales Gross margin 40.0%41.0% EBITDA EBITDA margin 11.2%6.3% EBIT EBIT margin 6.0%3.0% Net profit on continuing operations Net profit margin 5.4%2.5% Net loss on discontinued operations (25 765)(7 417) Total net profit * Continuing operations do not include results of Galeria Centrum.

13 EMF financial results for the first three quarters of 2006, after adjusting for one-off items, show further improvement in profitability Results from continuing operations only, that is excluding Galeria Centrum After adjusting for one-off items – including in Q3 of 2005 the result on sale of ZARA shares and various impairment charges* Translates into EMF financial results on comparable basis: 3Q Q 2005 Total sales excl. ZARA Sales revenue growth +20.9% Gross margin excl. ZARA 39.4%41.0% EBITDA EBITDA Margin 5.4%6.3% EBIT EBIT Margin 2.3%3.0%3.0% Net profit Net profit margin 1.6%2.6% *for additional information please refer to interim consolidated financial statements of EMF Group and Directors’ Report

14 1.Organic development In October sales’ growth in continuing operations (i.e. excl. Galeria Centrum) amounted to 29% compared to the prior period of 2005 In October outlets have been opened with net retail area of over sqm Internet sales Continuation of EMF strategy - preliminary results for October 2006 Organic growth

15 1.Organic growth In November & December we are planning to open 7 additional outlets with net retail area of over sqm In 2006 we plan to open 40 outlets with net retail area of over sqm Additional 9 outlets with net retail area of over sqm, to be opened in Złote Tarasy moved to 1Q 2007 The majority of lease contracts for 2007 have been finalized Further positive sales development in existing chain 2. Business model development Letters of intent with 1-2 new franchise and license brands Planned closing of both transactions in Ukraine Planned closing of Galeria Centrum transaction Internet sales Continuation of EMF strategy – Outlook for Q4 Organic growth Business model extension

16 3. International expansion Planned signing of the next two leases for SMYK stores in Berlin for 2007 Planned signing of 3 – 5 leases for Empik/SMYK stores in Ukraine 4. Internet sales First full Christmas trading of empik.com Internet sales Continuation of EMF strategy – Outlook for Q4 International expansion

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