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We are the leading, independent regional lifestyle group...

Review of operating and financial performance of EMF Group for the period ended 30 September 2006 and outlook for year-end November 15th,2006. Operator of the largest network of retail stores in Poland.

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We are the leading, independent regional lifestyle group...

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

  2. Operator of the largest network of retail stores in Poland Operator of 283 retail outlets in Poland and 1 SMYK store in Germany*, totalling 132 300 sqm of net retail area.* Active in wholesale trade in Poland and in the region Marketing and distribution of leading cosmetics and optical brands in Poland, Slovakia and Czech Republic. Further growing into Poland and expanding internationally Plans to open above 120 new stores in Poland in the near future, expanding into neighbouring countries, in particular Ukraine and Germany. Growing sales and stable margins 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. 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 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

  5. 12 54 12 13 272 284 49 49 62 264 13 266 31 183 31 899 31 940 122 176 26 784 22 956 124 180 25 363 128 917 21 777 31 183 132 298 Organic growth of existing business translates into further extension of network of outlets and retail area… 2005 1Q 2006 2Q 2006 3Q 2006 Net retail area Net retail area Net retail area Net retail area Outlets Outlets Outlets Outlets Media & Entertainment 77 EMPiK 40 525* 76 40 956* 42 041* 81 43 491* 75 35 EMPiK Foto 39 39 35 55 55 Language schools n/a n/a 58 n/a 57 n/a 35 Smyk 34 28 690 35 29 085 29 573 30 124 36 Fashion & Beauty Franchised brands** Galeria Centrum Total *** Capex spent during the first three quarters of 2006 amounted to almost PLN 54 Mio. * 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.

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

  7. … and continued growth of sales, also in LFL 2005 3Q 2005 3Q 2006 Sales Growth rate Sales Sales Growth rate Media & Entertainment EMPiK Retail 494 755 316364 365015 Smyk 97 349 143 144 160 445 Other Media & Entertainment 67 816 54 102 40 441 EMPiK – LFL 11.5% 2.4% Smyk – LFL 41.4% 9.1% Fashion & Beauty Franchise brands 132 944 147 247 204 598 195 820 Galeria Centrum 128 762 135 989 Zara 58 054 58 054 - 58.0% 8.2% Franchise brands – LFL Galeria Centrum – LFL 5.0% -0.3%

  8. New businesses in EMF subsidiaries EMF continues its business model extension … Internet sales 1. New brands in Ultimate Fashion: Spring, Palmers and Boss Shoes& Accessories 2. New brands inOptimum 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 inSMYK: Bear Factory concept development in Smyk existing chain 5. New products in language schools:courses forcorporates and English for children (Kids Love English) Business model extension International expansion

  9. Investment/Sales … and managing of its portfolio • Sale of Galeria Centrum • Investment agreement with Vistula & Wólczanka S.A. signed on September 22nd 2006. • 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. International expansion into the region EMF continues its international expansion plan 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 2007. • 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 2006. • A further 2 agreements for new stores in 2007 have been signed and additional 2 agreements are under negotiation.

  11. Empik.com EMF Group further develops Internet sales • 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 15-20 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 2005 3Q 2006 * bez perfumerii Sephora ** bez Zara * 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 – includingin Q3 of 2005 the result on sale of ZARA shares and various impairment charges* • Translates into EMF financial results on comparable basis: 3Q 2006 3Q 2005 *for additional information please refer to interim consolidated financial statements of EMF Group and Directors’ Report

  14. Internet sales Internet sales Continuation of EMF strategy - preliminary results for October 2006 • 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 2006 5 outlets have been opened with net retail area of over 2.500 sqm Organic growth

  15. Internet sales Internet sales Continuation of EMF strategy – Outlook for Q4 • Organic growth • In November & December we are planning to open 7 additional outlets with net retail area of over 3.000 sqm • In 2006 we plan to open 40 outlets with net retail area of over 18.600sqm • Additional 9 outlets with net retail area of over 4.000sqm, 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 Organic growth Business model extension

  16. Internet sales Internet sales Continuation of EMF strategy – Outlook for Q4 • 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 International expansion

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