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ComputerLand SA
ADDITIONAL INFORMATION
to the abridged financial statements SA- QSr4 / 2005
1. Accounting principles and methods, assets and liabilities valuation methods as of the
balance sheet day and profit and loss measurement methods
The financial statements were drawn up according to the following regulations:
-The Act on Accounting of 29 September 1994 (uniform text Journal of Laws No. 76,
item 694, 2002);
-The Ordinance of the Council of Ministers of 19 October 2005, on
current and periodical information communicated by the issuers of
securities (Journal of Laws No. 209, item 1744);
The principles for drawing up financial statements for Q4 2005 employed by the company have not
changed since their last description included in the financial statements for the year 2004 - SA-R 2004.
2. Information on adjustments due to provisions and asset revaluation write-offs.
As of 30 September 2005, the provisions and assets related to deferred income tax were as follows:
Deferred tax assets:
In PLN ‘000
Item
1. non-settled investment
relief
2. revaluation of
securities
3. estimated income
from long-term
contracts
4. Unrealised foreign
exchange gains
5. capital component
related to B series
convertible bonds
6. - other
Total provision
related to deferred
income tax
As at 30.09.2005
Change in Q4
As at 31.12.05
1
-
1
387
(11)
376
7,242
751
7,993
9
27
36
918
(285)
633
4
8,561
13
495
17
9,056
-Deferred tax assets:
In PLN ‘000
Item
1. provisions made
2. unpaid remuneration
3. estimated cost of
servicing B series
convertible bonds
4. unrealised foreign
exchange losses
5. estimated costs
arising from longterm contracts
6. financial asset
revaluation
7. other
Total Deferred
tax assets
As at 30.09.2005
Change in Q4
As at 31.12.05
3,325
1,556
4,868
683
692
(11)
4,008
2,248
4,857
55
(24)
31
1,114
257
1,371
921
(162)
759
281
12,120
57
1,492
338
13,612
ComputerLand SA
Changes in asset revaluation write-offs during Q4 2005 were as follows:
In PLN ‘000
Item
1. receivables revaluation
As at
30.09.2005
4,785
2. financial asset revaluation
3. Other asset revaluation
Total asset revaluation write-offs
Change in Q4
As at
31.12.05
229
5,014
5,792
5,792
89
89
10,666
229
10,895
Selected items in assets and liabilities shown in the financial statements were converted into EUR at
the average PLN-EUR exchange rate specified by the National Bank of Poland on the balance sheet
date. Selected items in the profit and loss account were converted into EUR at an average exchange
rate calculated as an arithmetic mean of all average exchange rates specified by the National Bank of
Poland on the last day of each month covered by the profit and loss account.
Average exchange rate
during January-December
2004
2005
4.5182
4.0233
Exchange rate on the last
day of the period ending 31 December
4.0790
3.8598
3. ComputerLand S.A. Capital Group
On the basis of a share sale agreement dated 21 November 2005 ComputerLand SA, purchased from
Geomar S.A., a subsidiary, 19,847 shares in KPG Sp. z o.o. constituting 81.66% of its share capital.
By the same, ComputerLand SA became the entity directly dominant towards KPG Sp. z o. o.
(ComputerLand SA communiqué 76/2005 of 22 November 2005)
On 24 November 2005 ComputerLand SA purchased 100% of the shares in
ICD COMP Consulting Sp. z o. o. for the aggregate amount of PLN 167,300 zł. As a result of the
above transaction
ComputerLand SA became the owner of 100% of the shares in ICD COMP
Consulting Sp. z o. o. and is authorised to exercise 100% of the votes at this company’s Meeting of
Shareholders.
ICD COMP Consulting Sp. z o. o. is a supplier of IT solutions and services on the Polish financial
institutions market. ComputerLand SA purchased the shares in ICD COMP Consulting Sp. z o. o.
as a long-term capital investment realised within the development strategy of
the ComputerLand Capital Group.(ComputerLand SA communiqué 78/2005 of 25 November 05)
On 5 December 2005, ComputerLand SA in return for cash consideration of 10,000 roubles,
assumed control over 100% of the shares in the limited liability company ComputerLand CIS with its
registered office in Moscow, the Russian Federation. ComputerLand took over the shares in
ComputerLand CIS as a long-term investment within the development strategy of the
ComputerLand Capital Group. ComputerLand’s own funds were used to finance the share
acquisition. (ComputerLand SA communiqué 82/2005 of 05 December 05)
On 29 December 2005 the District Court for the City of Warsaw, XX Commercial Division of the
National Court Register disclosed in the register of businesses a merger of ComputerLand SA with
the sole shareholder subsidiaries: Centrum Informatyki Energetyki Sp. z o. o and Computerland
Mielec Sp. z o. o.
(ComputerLand SA communiqué 88/2005 of 29 December 05)
ComputerLand SA
On 21 December 2005 ComputerLand S.A. signed with Elektrownią Połaniec S.A. - Electrabel
Group, an agreement for the purchase of 99 shares in Elpoinformatyka Sp. z o. o.
As a result of the above mentioned transaction, ComputerLand S.A. will become the owner of
99% of the shares in the share capital of Elpoinformatyka Sp. z o. o., and will be authorised to
exercise 99% of the votes at this company’s Meeting of Shareholders.
The shares in Elpoinformatyka Sp. z o. o. are treated as a long-term investment within the
development strategy of the ComputerLand SA. development strategy.
The final transfer under the agreement will take place after satisfaction of the conditions precedent,
amongst others:
obtaining a decision of the President of the Office for the Protection of Competition and Consumers
granting consent to the merger of undertakings consisting in the acquisition and taking up by
ComputerLand SA of shares in the Company.
(ComputerLand SA communiqué 87/2005 of 21 December 05)
4. Financial results, description of significant achievements or failures and most
important events that took place in the period subject to this report.
In 2005 ComputerLand posted revenues of over PLN 682 million, which when compared to
PLN 628 million in 2004 represents an increase of almost 9%. Operating and net profit before a
adjustment connected with a claim of the Agency for Restructuring and Modernisation of
Agriculture (ARiMR) amounted to PLN 38.7 million and 21.7 million accordingly (Tabe A1).
These results after the balance sheet date were adjusted in view of the necessity of creating a
provision due to a claim brought by ARiMR (table A2), which ComputerLand's management
board announced in a communiqué dated 31 January 2006.
Taking into account the provision ComputerLand achieved revenues of PLN 682
million, an operating profit of PLN 28.4 million and a net profit of 13.3 million (table A3). This
provision may be dissolved in connection with a possible settlement to be reached with ARiMR
and the execution of recourse claims vis-à-vis Techmex.
The costs of servicing convertible bonds were charged to the net results shown. These costs
exceeded PLN 16 million for the whole of 2005.
Table A1 (prior to adjustment)
In PLN 000’s
2005
2004
change
Sales revenues
683,199
627,889
8.8%
Operating result
38,726
38,323
1.1%
Net profit
23,553
15,659
50.4%
Table A2 (amount of adjustment)
In PLN 000’s
Sales revenues
Operating result
Net profit
effect of provision
(744)
(10 378)
(10 237)
ComputerLand SA
Table A3 (following adjustment)
In PLN 000’s
Sales revenues
Operating result
Net profit
2005
682,455
28,348
13,316
2004
627,889
38,323
15.659
change
8.7%
(26%)
(15%)
In Q4 of 2005 sales revenues exceeded PLN 290 million and the operating and net profit before
the provision amounted to PLN 14.7 and 8.5 million accordingly (table B1).
These results after the balance sheet date were adjusted in view of the necessity of creating a provision
due to a claim brought by ARiMR (table B2), which ComputerLand's management board announced
in a communiqué dated 31 January 2006.
Table B1 (prior to adjustment)
In PLN ‘000
Sales revenues
Operating result
Net profit
Table B2 (amount of adjustment)
In PLN ‘000
Sales revenues
Operating result
Net profit
Q4/ 2005
Q4/ 2004
change
291.120
14.708
8.503
184.423
13.034
471
57,9%
12,8%
1.705%
effect of provision
(744)
(10 378)
(10 237)
Table B3 (following adjustment)
In PLN ‘000
Sales revenues
Operating result
Net profit
Q4/ 2005
290.376
4.330
(1.734)
Q4/ 2004
184.423
13.034
471
change
57,5%
(66,8%)
Traditionally strong sectors are boosting profitability
The banking and financial sector accounted for over one-third of the entire Group’s sales in 2005.
It brought PLN 285 million in revenues. However, this level of sales was achieved at a
considerably higher level of profitability. In 2005, the Group consolidated cooperation with its
biggest clients, i.e. the NBP, Bank BPH, BZ WBK, Kredyt Bank and PKO BP, and also
dynamically expanded its cooperation with clients such as Lukas Bank, ING Bank Śląski, BGŻ
and Bank Millennium. The company also commenced cooperation with new clients in this sector,
including with EFG Polbank. This was another year confirming that ComputerLand has the
broadest client base in the Polish banking sector.
After an excellent performance in 2004, in 2005 the telecom sector increased its revenues and its
profitability yet again. Sales amounted to PLN 112 million. This can be attributed largely to
cooperation with Telekomunikacja Polska in realising the following projects: Geomarketing.CL,
OSS and the financial-bookkeeping system.
The public sector achieved sales of almost PLN 200 million, almost 50% more than in 2004. This
was possible thanks to the realisation of many projects financed from EU funds and numerous
contracts for the state administration. The Group consolidated its position in this sector by
realising new ventures for clients such as the Ministry of National Defence and Ministry of
Internal Affairs and Administration, as well as many projects for GIS. Aside from high revenues,
the public sector also boasted a record portfolio of orders, amounting to over PLN 100 million at
the beginning of the year.
ComputerLand SA
The company reaffirmed its strong presence in the utilities sector by realising major projects for
electricity, gas and heat providers. Despite clear delays with IT projects in this sector, the Group
posted revenues of over PLN 77 million. Successive good figures in this sector provide a basis for
market growth in 2006.
The health sector accounted for almost PLN 24 million in revenues, the result of the
performance of a contract for the National Health Fund involving ongoing maintenance of the
Fund’s IT system and the introduction of ComputerLand's own applications to Polish hospitals.
With such good performance and expanded cooperation with the National Health Fund,
the Group seems a natural partner in the task of creating a nationwide Register of
Medical Services.
An increase in the Group’s profitability – consulting project
Jointly with a consulting firm, ComputerLand is finalising a plan aimed at boosting profitability .
Because of the Group’s very rapid growth in previous years, it is necessary to improve interdepartmental cooperation. At the start of the II quarter of 2006, ComputerLand will launch a
programme to boost organisational effectiveness. It will concentrate on three main tasks:
- an increase in productivity in software manufacturing processes,
- a more efficient use of human resources,
- centralised procurement of products and services throughout the Group.
This programme is based on best practices that have proved themselves in many international
corporations. The Management Board expects that the implementation of this programme will boost
the gross profit by at least 20 million in the first year and by at least PLN 30 million in the following
year. The first effects are expected to be visible in the second half of 2006.
Consolidation – a strengthening of sectors
In 2005, the Group continued its consolidation strategy, involving the acquisition of companies which
expand the ComputerLand range of products and its competencies in individual sectors. The Group
acquired shares or took over IT systems in the following companies: Intelligent Software (bankingfinance sector), Efekt Software (self-government sector) and ELPOINFORMATYKA (outsourcing in
the utilities sector).
5. Description of factors and events, particularly those of an untypical nature, which
have significantly affected the financial results
5.1. Servicing of B series convertible bonds
The financial costs for Q4 2005 include the amount of PLN 4,319 thousand for servicing
issued B series convertible bonds. Interest of B series bonds (8.5% per annum) accrued during
this period amounted to PLN 1,445 thousand, and the Premium payable on redeeming the
bonds amounts to PLN 1,373 thousand.
The structure of financial costs relating to B series bonds, taking into account the amortised
cost of the financial instrument, is as follows:
ComputerLand SA
Reporting period
Interest of
8.5%
Premium*/
2001
2002
2003
2004
Total costs 1Q/2005
4,662
7,597
7,584
7,609
1,415
4,425
7,210
7,210
7,230
1,342
(223)
725
2,434
4,440
1,141
2Q/2005 3Q/2004
1,431
1,358
1,232
4,021
3Q/2005
1,446
1,373
1,349
4,168
4Q/2005
1,445
1,373
*/Premium payable on the redemption of bonds
1,501
4,319
Amortised cost of
financial instrument
One-off costs
arising from
partial
redemption
Total
costs
8,864
15,532
17,228
24,051
3,898
4,772
On 17, 25 and 26 January and 16 February 2006 ComputerLand SA purchased 6,220 of its own series
B bearer bonds convertible to ordinary bearer series N bearer shares, for the purpose of their
redemption. After the redemption, the number of series B bearer bonds convertible to ordinary bearer
series N shares will be 530.
As a result of the discussed transactions involving the redemption of bonds, the financial costs
associated with the bonds to their final redemption date, i.e. 21 May 2006 and having an impact on
the company's results in particular quarters, will changes and will be as follows:
Reporting period
Interest of 8.5%
Premium*/
Amortised cost
of financial
instrument
1Q/2006
424
403
498
1Q/2006
63
60
74
One-off costs
resulting from
partial
redemption
Total cost
4.196
*/Premium payable on the redemption of bonds
6. Explanations related to the seasonal or cyclical nature of the Company’s
activities in Q4 2005
The Company’s activities are not subject to seasonal or cyclical factors.
5.521
197
ComputerLand SA
7.
Differences between Polish Accounting Principles and the International Financial
Reporting Standards
ComputerLand SA has drawn up the report for Q4 2005 pursuant to Polish Accounting Principles,
whereas the consolidated financial statements for Q4 2005 were drawn up pursuant to International
Financial Reporting Standards (IFRS) as the dominant entity.
8.
Information on issue, redemption or repayment of debt and capital securities
In Q4 2005 Dom Inwestycyjny BRE Bank SA in response to ComputerLand SA.’s Proposal to
Purchase series G bonds with a first purchase right to subscribe series U shares, Dom Inwestycyjny
BRE Bank SA made an entry in the register of 137,200 series G bonds with a right of first purchase to
subscribe series U shares, indicating that it became the owner of the bonds allocated to it.
The purpose of the Bond issue is the realisation of the management option programme carried out on
the basis of a resolution adopted by the Extraordinary Meeting of Shareholders on 25 October 2001.
One hundred and thirty seven thousand registered bonds with a first purchase right in relation to
subscribing series U shares are issued. Each bond carries the right to subscribe one series U share in
the company.
9.
Information on paid or declared dividends
The company did not pay out dividends
10.
Events after the balance sheet date that may have a significant impact on the
company’s future financial results
Other than the information contained in point 13 there were no events after the balance sheet
that could exert a major impact on the future financial results of the company.
11.
Results of changes in the Company’s structure, including changes resulting from
mergers, acquisitions or the sale of entities within the capital group, long-term
investments, division resulting from restructuring and the discontinuation of
operations.
The management board of ComputerLand SA announces that on 29 December 2005 the District
Court for the City of Warsaw, XX Commercial Division of the National Court Register disclosed in
the register of businesses the merger of ComputerLand SA with the sole shareholder subsidiaries
Centrum Informatyki Energetyki Sp. z o. o and Computerland Mielec Sp. z o. o.
The merger of Centrum Informatyki Energetyki Sp. z o. o and Computerland Mielec Sp. z o. o. with
ComputerLand SA was carried out on the basis of Article 492 paragraph 1 sub -paragraph 1 of
the Act dated 15 September 2000 , the Commercial Companies Code, by way of transferring th e
entire assets of Informatyki Energetyki Sp. z o. o and Computerland Mielec Sp. z o. o. to
ComputerLand SA.
As a result of the fact that ComputerLand S.A. was the only shareholder of Centrum Informatyki
Energetyki Sp. z o. o and Computerland Mielec Sp. z o. o. the merger took place without an
increase in the share capital of ComputerLand SA and an issue of new shares in the company.
ComputerLand SA
Information on changes in the Company’s contingent liabilities or assets that
arose after December 31 2004
12.
As at December 31 2004, the total value of sureties and guarantees provided by the company to
subsidiaries was PLN 14,400 thousand.
As at December 31 2004, the total value of sureties and guarantees provided by the company was PLN
71,588 thousand.
As at December 31 2005, the total value of sureties and guarantees provided by the company was PLN
115,970 thousand.
As at December 31 2005, the total value of sureties and guarantees provided by the company to
subsidiaries was PLN 28,781 thousand.
13.
Information on the ability to realize published forecasts for the current year
On 19 October 2005 the management board of ComputerLand announced a forecast for its
consolidated results for 2005. The management board forecasted revenues at a level of over PLN 800
million and a net profit at the level of PLN 20 million. Achieving this forecast required exceptional
results in Q4 of last year: sales exceeding PLN 300 million and a net profit of PLN 9 million. The
management board hereby confirms the realisation in Q4 of the above plans.
Due to an event which occurred after the balance sheet date, the management board has been forced to
create a provision for potential costs associated with a claimed brought by ARiMR in the amount of
PLN 10,378,107.83 in spite of the fact that it has undertaken action aimed at finding an amicable
solution to the dispute with ARiMR and is convinced that the circumstances allow for another
evaluation of the factual circumstances and the legal performance of the agreement.
This provision in its full amount reduces the net profit for 2005; however payment by Techmex S.A.
of a recourse claim in the amount of PLN 10,378,107.83 will increase the net profit by this amount
when this occurs.
Because of this the management board acting with due care changes the forecast for 2005 in respect
of the forecasted net profit, to PLN 10 million, and is planning a simultaneous increase in the planned
net profit for the first half of 2006 by the same amount.
14.
Shareholders holding directly or indirectly at least 5% of the total number of
votes at the company's general meeting of shareholders.
During the period covered by this report no increase in share capital of ComputerLand S.A. was
recorded. On 31 December 2005, the Company’s share capital was PLN 6,892,575.
As at 1 March 2006, the Company’s share capital amounted to PLN 6,896,675 and consisted of
6,896,675 shares, with a nominal value of PLN 1 each.
According to the information available to the company, the shareholders holding shares exceeding 5%
of the share capital of ComputerLand SA as at 01 March 2006 were:
- The president of the Management Board of ComputerLand SA – Tomasz Sielicki, who
holds 9.12% of the share capital of ComputerLand SA and the same number of votes at the
General Meeting of Shareholders of ComputerLand SA,
- Commercial Union OFE BPH CU WBK SA, which holds 7.25 % of the share capital of
ComputerLand SA and the same number of votes at the General Meeting of Shareholders
of ComputerLand SA,
- ING Natoniale – Nederlanden Polska OFE, which holds 5.22% of the share capital of
ComputerLand SA and the same number of votes at the General Shareholders’ Meeting of
ComputerLand SA,
- Pioneer Pekao Investment Management S.A., which holds 5.01% of the share capital of
ComputerLand SA and the same number of votes at the General Shareholders’ Meeting of
ComputerLand SA,
- J.P. Morgan Chase & Co. and subsidiaries, which hold 5.48% of the share capital of
ComputerLand SA and the same number of votes at the General Shareholders’ Meeting of
ComputerLand SA
ComputerLand SA.
SHARES
Changes
in the
number
of shares
Structure
on
9.11.2005
Number of % of
Structure on
31.12.2005*/
Number
of CL
shares
CL shares votes at
the AGM
% of votes
Changes
between
31.12.2005
and
1.03.2006
at the AGM
Tomasz Sielicki
628,841
9.12%
628,841
9.12%
CU OFE BPH
CUWBK
ING NationaleNederlanden
Polska OFE
Pioneer Pekao
Investment
Management SA
J.P. Morgan
Chase & Co.
and
subsidiaries
500,000
7.25%
500,000
360,000
5.22%
345,008
378,078
-
Structure on
1.03.2006
Number
of CL
shares
% of votes
at the AGM
628,841
9.12%
7.25%
No data 500,000
7.25%
360,000
5.22%
No data 360,000
5.22%
5.01%
345,008
5.01%
No data 345,008
5.01%
5.48%
378,078
5.48%
No data 378,078
5.48%
*/ The list of shareholders has been drawn up according to the Company’s best knowledge and on the basis of notifications received under
Article 69 paragraph 1 of the Act on public offers and the terms and conditions of introducing financial instruments to an organised system
of trading and on public companies (Journal of Laws 2005, No. 184 item 1539) and on the number of shares owned by a given shareholder
recorded at the last General Meeting of Shareholders
15.
Changes in the structure of ownership of shares and share options by persons
managing and supervising the Company that have taken place since the
communication of the previous quarterly report are as follows:
SHARES
Tomasz Sielicki
Sławomir Chłoń
Michał
Danielewski
Elżbieta
BujniewiczBelka
Andrzej Miernik
Increases in the share
Number of
CL shares at portfolio
9.11.2005
Purchase
Exercise of
of shares
options
628,841
100
74,990
Decrease in Number of
the share
CL shares on
portfolio, share 31.12.2005
sales
628,841
-
-
-
-
-
-
-
-
-
-
100
74,990
Changes
Number of
between
CL shares on
31.12.05 and 01.03.2006
01.03.06
628,841
(100)*/
-
74,990
-
-
-
-
-
-
-
-
*/ Decrease due to a change in the members of the Management Board
As at 31 December 2005 members of the ComputerLand SA supervisory board did not hold shares in
ComputerLand SA.
Changes in the ownership of share options by persons managing and supervising the Company:
SHARE
On
9.11.2005
Increases in
the share
option
portfolio
Decreases in
the share
option
portfolio
109,500
61,000
64,000
66,750
-
-
-
-
-
-
-
-
OPTIONS
Tomasz Sielicki
Sławomir Chłoń
Michał Danielewski
Elżbieta BujniewiczBelka
Andrzej Miernik
32,075
*/ Decrease due to a change in the members of the Management Board
On
31.12.2005
Changes
between
31.12.05 and
1.03.06
On
1.03.2006
-
109,500
61,000
64,000
66,750
(61,000)*/
-
109,500
64,000
66,750
32,075
-
32,075
ComputerLand SA
SHARE
OPTIONS
Henryka Bochniarz
Heather Potters
Maciej Jankowski
Jacek Mościki
Andrzej Koźmiński
Szczepan Strublewski
Józef Okolski
16.
On
9.11.2005
3,000
3,300
1,200
2,250
Increases in
the share
option
portfolio
Decreases in
the share
option
portfolio
-
-
-
-
-
-
-
-
-
-
-
-
-
On
31.12.2005
Changes
between
31.12.05 and
1.03.06
3,000
3,300
1,200
2,250
-
On
1.03.2006
3,000
3,300
1,200
2,250
Proceedings pending before courts, arbitration bodies or public administration
bodies.
In the presented quarter the Company did not initiate or carry on any proceedings related to
liabilities or debts exceeding in total 10% of the Company’s share capital before a court or a public
administration body.
17.
Information on transactions with related entities.
ComputerLand SA did not conclude any transactions with the ComputerLand SA Group
companies outside the ordinary course of business.
18. Information on credit or loan sureties or guarantees granted
The Company did not grant sureties / guarantees for credits or loans to any entity or subsidiary entity
in amounts exceeding 10% of the Company’s share capital. Among the guarantees issued as at 31
December 2005, ca. 52 % are performance bonds. The objective of a performance bond is to secure
claims arising from the non-performance or improper performance of an agreement. As at 31
December 2005 approximately 40% of the issued guarantees are payment guarantees the purpose of
which is guaranteeing timely payment of cash receivables. Tender guarantees are 7% of the total of
guarantees and sureties.
The aggregate value of sureties and guarantees issued by the company as at 31 December 2005
amounts to PLN 115,970 thousand.
19. Other significant information for an evaluation of the personnel, property and
financial condition of the company, its financial results and their changes, as well
as material information for an evaluation of the possibility the company realising
its obligations.
On 23 February 2005 the company's supervisory board recalled Sławomir Chłon from the position
of Vice-President of the ComputerLand SA management board, thanking him for his work over the
years for the company, stressing his achievements and successes in this period.
On 23 February 2005 the supervisory board of the holding company appointed as of 1 April 2006
Dariusz Chwiejczak to the position of Vice-President of the management board with responsibility
for sales. The new Vice-President in view of his knowledge and professional experience will be
responsible for supervising consolidated sales within the ComputerLand Group and for its
international operations. This will strengthen the sales dynamics of the second largest group of IT
companies in Poland, employing over 2000 employees. He will perform an active role in consolidation
of the Group, comprised of several dozen subsidiaries and affiliated companies, including three
ComputerLand SA
abroad.
There was no other material information for an evaluation of the personnel, property and financial
condition of ComputerLand or material information for an evaluation of the possibility of
ComputerLand realising its obligations during the reporting period.
20. Factors that may influence the company’s results over the next quarter
ComputerLand Group expects 2006 to be a year of continued growth. The Group commenced 2006
with a portfolio of orders worth PLN 400 million. The Group will concentrate on increasing the
profitability of projects, amongst others by introducing a programme jointly with a consulting
company. Amongst others, the finalising in this period of projects or important phases of them in the
banking-finance sector and the public sector will have an impact on Q1 results. The uneven
distribution of revenues in the IT sector through the year, which is due to the seasonality of orders on
the part of clients should be taken into account.
Warsaw, 1 March 2006
ComputerLand SA