1. DETERMINANTS OF CAPITAL MARKET DEVELOPMENT IN CEE COUNTRIES WARSAW STOCK EXCHANGE EXPERIENCE – SIX MONTHS AFTER ENTRY INTO EU Lidia Adamska Director Strategic Planning Department WARSAW STOCK EXCHANGE Prague, November 2004

2. NEW COMPANIES ON WSE  Ten months of 2004 - IPO MARKET BOOM  Numerous announcements by private companies interested in listing on our market (including foreign companies)  Government plans to privatise several large state-owned companies through the exchange * November 10, 2004

3. 2004 IPO BOOM VALUE OF THE OFFERS 2001-2004 as of November 10, including PKO BP

4. NEW LISTINGS ON WSE 10 companies to be listed on Warsaw Stock Exchange by the end of 2004 (including 2 already admitted to trading) 25 prospectuses in the pipeline of the Polish Securities and Exchange Commission 150 companies declare their interest in listing on WSE Foreign listings at WSE – –2003 – BACA – –2004 – BorsodChem, IVAX, Cinema City, BMP – –2005 – MOL, etc.

5. NUMBER OF COMPANIES NEWLY LISTED CEE EXCHANGES AND GLOBAL EXCHANGES Note: * Data as of November 10, 2004 Source: WFE, FESE, WSE

6. Development strategy of Polish capital market – Agenda Warsaw City 2010 – by Ministry of Finance to grow the market: - to reach 50% ratio of capitalisation / GDP - to attract new companies to public market (including foreign companies) to strengthen corporate governance and law enforcement to privatise WSE and National Depository for Securities (NDS) to establish possible strategic alliance by WSE & NDS Idea of Warsaw City – combines global Polish capital market strategy with WSE strategy Warsaw City – financial centre attracting foreign capital WSE – element of European network of exchanges WARSAW CITY BUILDING A FINANCIAL CENTRE BY 2010

7. STRENGTHENING DOMESTIC CAPITAL MARKET CORPORATE GOVERNANCE as of October 2004 ”Best Practices in Public Companies 2002” – CG Code All WSE-listed companies sent CG compliance statements Average company complies with over 90% of CG principles 4% companies do not comply with any of CG principles 40% companies declare compliance with all CG principles (Rule 20 on Independent Board Members to be implemented by June 2005) ”Best Practices 2005” already produced

8. STRENGTHENING DOMESTIC CAPITAL MARKET BALANCED INVESTOR STRUCTURE EQUITY MARKET 1997-2004