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Enterprise Invetors

Enterprise Investors Acquires STD Slovakia and Donivo MKD and Supports their Merger

Bratislava, 18 December 2007 — Polish Enterprise Fund VI (PEF VI), a private equity fund managed by Enterprise Investors (EI), has invested €23 million in STD Slovakia and Donivo MKD, two major Slovak transportation service providers. As part of the deal, STD and Donivo will merge and operate under the STD Donivo brand. The companies’ founders will retain their minority positions, while EI will become 75% shareholder. The new company plans to continue its expansion across the CEE region.

The transaction, worth €34 million including debt leverage and a share capital increase, will support STD and Donivo’s growth. Both entities aim to further modernize and expand their fleet and to broaden and improve the range of services they offer. The merger is subject to approval by the Slovak anti-monopoly office.

STD and Donivo were founded in the early 1990s and became active in the international transportation business after 1998. Both companies have grown rapidly, establishing themselves as strong players on the domestic market. Their dynamic development continued after Slovakia’s accession to the EU. Today, the companies provide transportation services to major European clients and manage a combined fleet of more than 330 modern trucks. The combined turnover of STD Slovakia and Donivo MKD for this year is estimated at €55 million.

"Both STD and Donivo are fast-growing companies on a market with strong fundamentals for continued expansion. EI has identified additional opportunities to grow the combined business and further improve its efficiencies. EI aims to contribute to the growth of both companies and promotes their strategic development plans," said Dariusz Prończuk, Managing Partner of Enterprise Investors leading the investment.

Ivan Jakúbek, Investment Director of EI’s Bratislava branch, added: "I believe our partnership will provide a stronger basis for accomplishing the expansion plans of STD and Donivo. We are happy to work with the founders and their experienced management teams on the further development of both companies."

Ján Drozd and Roman Donoval, founders of STD Slovakia and Donivo MKD respectively, will remain in top management positions and keep their significant minority shares in the merged company.

"The investment by Enterprise Investors is of substantial benefit to our companies. It brings additional funds and the know-how we need to attain our strategic goals. The level of interest in the STD and Donivo merger validates our original assumption as to the exciting prospects for this combined business," said Ján Drozd.

"Enterprise Investors understands our common vision and is committed to the merger and further integration of STD and Donivo. We are convinced that we will now be able to offer a better service to our key customers across Europe and, crucially, to grow and expand more rapidly within the region," concluded Roman Donoval.

Enterprise Investors is the oldest and one of the largest private equity firms in Central and Eastern Europe. Active since 1990, the company manages funds with capital exceeding €1.6 billion. The funds managed by Enterprise Investors have invested €1 billion in 106 companies in Poland, Slovakia, the Czech Republic, Romania, Bulgaria and the Baltic States. The funds have exited 90 investments with total proceeds of over €1.3 billion.

The acquisition of STD and Donivo is EI’s third investment in Slovakia, after EI funds bought a stake in Orange Slovensko (previously Globtel) in 2001 and invested in Nay in 2005.

Enterprise Investors was advised on the STD and Donivo transaction by White & Case, KPMG and Deloitte.