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27 March 2003

Enteprise Investors is to invest in Magellan, a financial institution operating in the hospital payables market in Poland

Warsaw, 27 March 2003 — Polish Enterprise Fund IV, managed by Enterprise Investors — the largest private equity investor in Central Europe — has invested $8 million in Magellan, the leading non-banking financial institution operating in the hospital payables market in Poland.

The Polish market for classified and overdue hospital debt and payables is estimated today at PLN 6-8 billion ($1.5-2 billion) and will continue to grow dynamically in the context of medical reforms. The healthcare market is an attractive niche for specialist financial institutions in developed markets, and this gives a strong indication of what can be expected in Poland.

Magellan Sp. z o.o. has been operating since 1999. It buys the outstanding debts of public healthcare units from primary creditors (medical equipment suppliers, pharmaceutical companies, etc.) at a discount and then restructures and collects the debt for a profit. Magellan uses proven, statutory procedures of risk assessment and cash collection and has built a reputation as the most effective and reliable company of its type in Poland. It works with over 500 hospitals and 200 public healthcare suppliers, including foreign multinationals, to cover virtually all the market. Magellan is a driver for the continuing market transformation of hospital healthcare providers in Poland.

“New equity will enable Magellan to develop its debt portfolio and offer new products to keep up with the growing and increasingly sophisticated market. After three years of rapid growth the company also needed an experienced business partner,” said Marek Błaszkowski, Magellan’s president.

“The company has a transparent financial situation and is run by an experienced and dynamic young team with unique know-how of the healthcare and financial markets. We seek businesses like this for our portfolio and we are pleased that management chose EI as their preferred partner,” said Dariusz Prończuk, a partner at Enterprise Investors.

Enterprise Investors is the largest private equity firm in Poland and the region. Funds managed by Enterprise Investors have invested over $650 million in 87 companies across all economic sectors. EI is an active private equity investor in the Polish healthcare and financial markets.