“The objective of Polish Enterprise Fund IV is to give its investors the opportunity to participate in the benefits of the fast-growing Polish and Central European markets,” said Robert G. Faris, president and CEO of Enterprise Investors.

PEF IV will make investments ranging from $3 million up to $25 million in businesses representing different sectors of the economy in which Enterprise Investors has developed significant industry expertise. PEF IV’s target sectors include IT and telecommunications (up to 35% of PEF IV capital), pharmaceuticals and healthcare (up to 25%), consumer goods (up to 15%), industrial products, energy, financial services, and media. The typical holding period of an investment is between three and seven years.

The transactions considered for PEF IV will include expansion capital for private companies, medium to large privatizations, post-privatization investments, turnarounds, selective start-ups, buyouts, and joint ventures with foreign industry partners.

“Polish Enterprise Fund IV will continue the group’s strategy of investing in companies with a solid management team, a strong market position and potential for significant growth and expansion in local and international markets,” said Jacek Siwicki, managing partner of Enterprise Investors.

While PEF IV will focus on Poland, up to 20% of the fund’s capital may be invested in Central and Eastern European countries (Romania, the Czech Republic, Hungary, Bulgaria), so long as the investment opportunities meet the criteria defined by Enterprise Investors.

PEF IV will be managed by Enterprise Investors, the region’s largest and most experienced investment team with a combined total of over 120 years of direct private equity experience. Active in Poland since 1990, EI has developed a solid reputation as well as a strong network of contacts and deal sources both in Poland and the region.

The funds managed by Enterprise Investors – the Polish Enterprise Fund, Polish Private Equity Funds I & II, and the Polish–American Enterprise Fund – are the largest private equity investor in Central and Eastern Europe. The funds have invested over $550 million in more than 70 companies across all economic sectors in Poland and an additional $14 million in Romania. They have exited 33 investments and returned over $400 million to investors.

Enterprise Investors believes that PEF IV will generate attractive returns as a result of Poland’s prospective accession to the European Union. EU membership is expected to accelerate investment activity, expand economic and capital market development in Poland and surrounding countries, and significantly improve the capabilities and experience of local entrepreneurs and management teams. In addition, there will be enhanced exit opportunities fueled by the growing interest of strategic partners, potential listings in Western Europe and improving local stock markets. The targeted level of IRR (internal rate of return) is 30–35%, which also corresponds to EI’s track record.

Enterprise Investors has significant experience in investments in the healthcare sector. Funds managed by Enterprise Investors are the majority shareholder of the leading Polish pharmaceutical producer Polfa Kutno, and are also shareholders in two leading Polish pharmaceutical distribution companies – PGF and Pharmag. Two months ago EI announced its investment in Medycyna Rodzinna, a chain of private clinics. To date, EI has invested and committed a total of $37 million in pharmaceutical and healthcare companies.

The Polish pharmacy market is very dispersed, although larger groups of pharmacies remain as survivors of the state-owned Cefarm. The margin limits imposed on the sale of drugs and the consolidation process observed in the distribution of pharmaceuticals exert a growing economic pressure on individual pharmacies in Poland. There is increasing interest from international investors in the sector.

The task of Apteki Polskie is to consolidate the pharmaceutical retail market in Poland through financing existing entities that are interested in cooperation or franchising, and to create a national network of customer-friendly and economically sound pharmacies. The management team of Apteki Polskie has a combined total of over 20 years’ experience in pharmaceutical retail and distribution.

“The company created by EI provides a chance for Polish pharmacies to take part in the inevitable transformations on the market,” said Ryszard Wojtkowski, a partner at Enterprise Investors who is responsible for investments in the pharmaceutical sector. “Enterprise Investors has succeeded in getting the cooperation of the management team whose enthusiasm, education and unique business experience create the potential for a successful project.”

“We want Apteki Polskie to be perceived by the pharmacy community as a chance to propagate the best standards of the profession, fight unfair competition, work out a strong negotiating position with distributors, and create the opportunity for each pharmacy owner to grow their business,” said Artur Djagarov, president of the board of Apteki Polskie.

Enterprise Investors has been active in Poland and the CEE region since 1990. The funds managed by Enterprise Investors – the Polish Enterprise Fund, Polish Private Equity Funds I & II, and the Polish-American Enterprise Fund – have invested over $550 million in more than 70 companies across all economic sectors. Enterprise Investors has announced the first closing of its new $300 million fund, Polish Enterprise Fund IV, which will invest in Poland and in other CEE countries. Up to 25% of the PEF IV’s capital will be invested in the pharmaceutical and healthcare sectors.

Medycyna Rodzinna will use PEF’s investment to build a national network of outpatient clinics. The network will offer a broad range of services that will be financed by the recently reformed public health insurance system (Sickness Funds). Patients will be able to choose additional services for a fee. As soon as private health insurance schemes become available in Poland, Medycyna Rodzinna plans to serve this market segment as well. PEF has committed up to $10 million to the Medycyna Rodzinna investment, and half of this amount will be spent on building the network of clinics (renovation and start-up costs), while the other $5 million will go toward developing complementary medical businesses within Medycyna Rodzinna.

During the next three to four years Enterprise Investors intends to allocate up to $50 million to investments in the healthcare market. This reflects EI’s strategy of involvement in fast-growing sectors of the economy.

“Enterprise Investors has a ten-year tradition of investing in rapidly growing sectors of the Polish economy. We believe significant investment opportunities have resulted from the recent reform of the Polish healthcare system. We hope that by investing in this sector we will help create modern and well-functioning businesses that will provide a good service to their customers,” said Michał Rusiecki, an EI partner, who is directly responsible for the firm’s investments in the healthcare market.

Medycyna Rodzinna was established in January 1999 to take advantage of the opportunities created by healthcare reforms in Poland. The company’s two clinics in Warsaw have attracted 65,000 patients – more than any other private healthcare provider in Poland. Medycyna Rodzinna’s plans for the near future are to open more clinics elsewhere in Warsaw and in other big Polish cities. The clinics will offer a standardized, high-quality and customer-friendly service, with significant attention paid to preventive medicine and to encouraging a healthy lifestyle.

Enterprise Investors has been active in Poland and the CEE region since 1990. The four funds managed by Enterprise Investors have invested almost $550 million in more than 70 Polish companies representing different sectors of the economy.

Enterprise Investors is in the process of raising a new fund with capital of $300 million. The new fund will invest in Poland and in other CEE countries.

Enterprise Investors has almost six years of experience in investing in different segments of the Polish medical market. The total amount invested in large Polish companies representing the pharmaceutical sector (Polfa Kutno, Polska Grupa Farmaceutyczna, Pharmag) has reached $26 million. Medycyna Rodzinna is EI’s first investment in the newly developing Polish healthcare market. More investments in this sector are planned soon.

Our common aim is to consolidate our leading position in the market by developing a modern, customer-focused organization that will enable us to offer our clients more competitive products,’ said Ian Richards, business director and Head of CarnaudMetalbox Food Central & Eastern Europe, whose regional head office is located near Budapest, Hungary.

Both companies are leading producers of a wide range of metal containers and closures for the domestic food-processing sector and have been privatized during the past three years. The common investment program assumes completion of the construction of a plant which will produce a full range of steel and aluminum cans and will be located in Pruszcz Gdański.

‘This undertaking is an important step for FOB – we look forward to working together with a partner of world renown and see opportunities for further growth in Poland and the region,’ said Jacek Siwicki, managing partner of Enterprise Investors.

Crown Cork & Seal Company Inc. is the world’s largest consumer packaging company. Group sales in 1999 were $7.7 billion.

Enterprise Investors is the leading venture capital/private equity management firm active in Poland and the CEE region. Since 1990 the funds managed by EI have invested $520 million in 70 Polish companies representing different sectors of the economy. EI is currently in the process of raising a new fund with a capital of $300 million. The new fund will invest in Poland and the other CEE countries.

CarnaudMetalbox-Gopak Polska Sp. z o.o., located in Goleniów, produces cans and twist-off closures for the food processing industry, and crowns for the beverage industry.

Fabryka Opakowań Blaszanych Sp. z o.o., located in Gdańsk, is Poland’s second largest producer of cans for the food processing industry. Funds managed by EI privatized the company in May 1997 and have implemented a restructuring and re-equipment program in the company.

Ryszard Wojtkowski has been appointed a new partner of Enterprise Investors. Mr. Wojtkowski, who has 17 years of government, operations and industry experience, started his professional career as chief of staff to various Polish prime ministers (1983-1991). He has an extensive operating background in the area of consumer products, having held senior management positions at Coca Cola and Novartis/Gerber. Most recently he was promoted to Head of Infant/Baby Food and Gerber OTC, a $1.5 billion business within Novartis Consumer Health. Previously Ryszard Wojtkowski was Regional Director of Novartis Consumer Health with responsibility for Eastern Europe and several other countries. His prior positions include president of Alima Gerber (1994-97) and deputy general manager for Coca Cola (1991-93). Ryszard Wojtkowski graduated from the Academy of Economics in Katowice and studied at Harvard Business School.

“The changes in the structure of EI’s management are closely connected to our plans to raise a new fund and further expand the investment activity of Enterprise Investors in Poland and Central and Eastern Europe,” said Robert G. Faris, president of Enterprise Investors.

Enterprise Investors is the leading venture capital/private equity management firm active in Poland and the CEE region. Since 1990 the funds managed by EI have invested about $550 million in 70 Polish companies representing different sectors of the economy. Enterprise Investors is in the process of raising a new fund with capital of $300 million. The new fund will invest in Poland as well as in other CEE countries.

The investment is part of Enterprise Investors’ strategy of involvement in the Polish IT/internet sector and will be followed by further investments in internet companies. Funds managed by Enterprise Investors are the largest venture capital investor in this sector, and plan to invest about 20% of their capital (up to $60 million) in IT/internet companies in the next three to four years.

Enterprise Investors is the leading venture capital/private equity management firm active in Poland and the CEE region. Since 1990 the funds managed by Enterprise Investors have invested $550 million in 70 Polish companies representing different sectors.

The funds were the first to invest and successfully introduce to the Warsaw Stock Exchange the Polish IT company ComputerLand, and have been investing very actively on the Polish IT market since late 1998. EI has seven IT/internet companies in its portfolio and the total amount invested in the sector has reached $30 million.

Enterprise Investors is in the process of raising a new fund with capital of $300 million. The new fund will invest in different sectors of the Polish economy as well as in other CEE countries.

e-point SA is a leading Polish internet company. Established in 1996, e-point offers e-business solutions including intranet, extranet, e-commerce, web design and internet-based marketing. The company’s services involve analysis of customer needs and strategic planning, including design and implementation of complex solutions.

Customers for whom e-point has created web pages and other internet solutions include major financial institutions (Bank Handlowy, Raiffeisen Bank Polska, ING Group), international companies (Lucent Technologies, Henkel, Bosch), public administration bodies (Polish Parliament, National Bank of Poland), and leading Polish businesses (Polfa Kutno, Opoczno).

The company’s revenues amounted to PLN 1.5 million in 1999, up by 400% compared to the previous year. Sales are projected at PLN 18.5 million ($4.4 million) and net income is expected to reach PLN 2.6 million ($0.6 million).

“Faced with the development of e-business in Poland and in the world, we decided to focus on the activity in this segment. Since we have experience and a team of 40 professionals we decided to increase our potential by raising the additional capital necessary to keep our leading position on the market. We chose Enterprise Investors as our partner because it is a venture capital company with experience and significant investments in our industry, and has a lead position in the Central European capital markets. The unique capabilities of the Enterprise Investors team will help us choose the right development strategy,” said Marcin Żuchowicz, managing partner of e-point.

The company will continue to supply strategic internet solutions, and will specialize in designing, creating and implementing solutions enabling conventional companies as well as new internet companies to exploit the opportunities created by e-business. Apart from e-commerce solutions, these will include extranets serving electronic distribution channels, as well as intranet systems that will optimize the flow of information and facilitate collaboration within organizations. The company will also provide internet marketing to its customers to guarantee the commercial success of the solutions designed for them. The capital invested by the Polish Enterprise Fund will be used for team development and training, as well as for the purchase of hardware and software.

The investment in CCS is an element of the long-term strategy of the funds managed by Enterprise Investors to invest in the Polish IT market. The current value of the market is estimated at $2 billion. The fast-growing market of software and services has reached $700 million, and the services themselves – $460 million. According to analysts from Enterprise Investors, the Polish IT market will grow by 14-15% p.a. (in dollar terms) and the Polish market of IT software and services will grow by 30% p.a. (in dollar terms). Enterprise Investors’ analysts believe systems integration services are one of the most promising segments of the services sector, and the systems integration and local area networks niche is the fastest growing part of systems integration services. They expect the niche to grow by 35-40% p.a. in the near future.

“We are very interested in investing in the IT sector, especially in those companies that are experienced in implementing wide area networks. CCS is undoubtedly one of the best firms and has a long and successful track record in this area,” said Zygmunt Grajkowski, executive vice president of Enterprise Investors, who is directly responsible for the investment in CCS.

Enterprise Investors is the leading venture capital/private equity management firm active in Poland and the CEE region. Since 1990 the funds managed by Enterprise Investors – Polish Enterprise Fund, Polish Private Equity Funds I & II and the Polish–American Enterprise Fund – have invested $520 million in almost 70 companies representing different sectors of the Polish economy. Enterprise Investors is in the process of raising a new fund with capital of about $300 million.

The funds managed by Enterprise Investors have been investing actively in the Polish IT market for one and a half years. The CCS investment brings the total money invested in the Polish IT market by Enterprise Investors to $22 million, which makes EI the biggest venture capital investor in this market.

CCS SA is the sixth company representing the IT sector in the Enterprise Investors investment portfolio. EI already has stakes in Teta, AB, Comp, Biprogeo and CSS. The funds managed by Enterprise Investors have a long track record in IT investments – they were the first to invest in ComputerLand and successfully introduce it to the stock exchange. Enterprise Investors plans more investments in the IT sector in the near future.

Computer Communication Systems SA, located in Wrocław, is one of the top systems integrators and WAN suppliers in Poland. Last year the company’s sales increased by 80%, which was the highest growth rate on the market. Total revenues in 1999 reached PLN 65 million ($16 million). The main projects implemented so far are wide area computer networks as well as internal and external communication systems. An important element of all CCS solutions is the protection of data and information. The company’s major clients are Jeronimo Martins Distribution, Domy Towarowe Centrum in Warsaw, Metro Group, Volvo and Glaxo Wellcome. CCS plans to intensify its activities in the sectors mentioned above and to expand in the area of internet technologies.

“We have concentrated on improving our knowledge of network technologies. We have invested in a splendid team of engineers, who have realized many interesting ideas and implementations. Now it is time to offer our services to a wider group of clients. The support of the experienced and renowned venture capital fund of Enterprise Investors will help us for sure,” said Adam Grzech, president of the Board of CCS.