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3 August 2000

Enterprise Investors makes its first investment in the Polish healthcare market

Warsaw, 3 August 2000 — Polish Enterprise Fund managed by Enterprise Investors – the leading venture capital/private equity management firm in Poland and the CEE region – has invested in Medycyna Rodzinna (Family Medicine), one of the leading private healthcare providers in Warsaw, Poland. PEF has acquired 90% of the company’s shares.

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.