1 How EU funding help IIF companies grow TMT Ventures’09 Warsaw 5 th March 2009

EU funds in IIF Group TOGETHER 16 mil. PLN (4 mil. EUR) IIF GROUP IIF SEED FUND SOFTWARE MIND PERSONAL SENSE MONETTO WROOM SCOOL MEBLE PERSONAL TV PERYSKOP M obile CRM system with sales recommendation module WE KNOW IT 2007-2008 2008 - 2011 2007 12 mil. PLN SPO WKP 1.2.3 2.8 mil PLN 7th Framework Programme 0.4 mil PLN SPO WKP 1.4.1 2007 0.8 mil PLN SPO WKP 1.4.1

Summary

New Programmes to be addressed Operational Programme Innovative Economy (Program Operacyjny – Innowacyjna gospodarka POIG) Information society – increase of innovativeness of economy ( Społeczeństwo informacyjne – zwiększanie innowacyjności gospodarki) Supporting business in the field of electronic digital economy ( Wspieranie działalności gospodarczej w dziedzinie gospodarki elektronicznej) New Programmes

New Programmes to be addressed

Operational Programme Innovative Economy

(Program Operacyjny – Innowacyjna gospodarka POIG)

Information society – increase of innovativeness of economy ( Społeczeństwo informacyjne – zwiększanie innowacyjności gospodarki)

Supporting business in the field of electronic digital economy ( Wspieranie działalności gospodarczej w dziedzinie gospodarki elektronicznej)

Obtaining EU funding – pros and cons Pros and cons

Obtaining EU funding – pros and cons

IIF Seed Fund Seed and startup financing EU funds leveraged 50% Up to 1 mil. EUR single investment So far investments in 6 projects: (Monetto, Wroom, Scool, Meble, Personal TV, Peryskop) Investment sectors e-commerce software development and services new electronic media consumer finance

Seed and startup financing

EU funds leveraged 50%

Up to 1 mil. EUR single investment

So far investments in 6 projects:

(Monetto, Wroom, Scool, Meble, Personal TV, Peryskop)

Investment sectors

e-commerce

software development and services

new electronic media

consumer finance

WROOM – IIF Seed Fund Classified agregation of automotive advertisments Leader in vertical search engines in European automotive industry International expansion – currently in Poland and Germany New countries soon Second most popular automotive site in Poland November 2008 (6 month from launch): over 0,8 mil. users 3,5 mil. page views Addtional information about motorcycles, lorries and other vehicles Search engine for tires

Classified agregation of automotive advertisments

Leader in vertical search engines in European automotive industry

International expansion – currently in Poland and Germany

New countries soon

Second most popular automotive site in Poland

November 2008 (6 month from launch):

over 0,8 mil. users

3,5 mil. page views

Addtional information about motorcycles, lorries and other vehicles

Search engine for tires

Leader on furniture market Plans to become Ikea of the Internet Development towards complex site with interior equipment Horizontal and vertical expansion Winner of WebStar 2008 award, granted by Academy of Internet 5 th place in GEMIUS/PBI Research 0,7 mil. users 10 mil. page views E-commerce profits from Dec.2008 reached 0,6 mil. PLN MEBLE – IIF Seed Fund

Leader on furniture market

Plans to become Ikea of the Internet

Development towards complex site with interior equipment

Horizontal and vertical expansion

Winner of WebStar 2008 award, granted by Academy of Internet

5 th place in GEMIUS/PBI Research

0,7 mil. users

10 mil. page views

E-commerce profits from Dec.2008 reached 0,6 mil. PLN

Virtual shopping advisor Recommend products on the basis of millions product reviews and technical data Millons authentic product reviews in one place Analyze Reviews from the whole Internet Used technology analyzes every gathered review to determine the best products Innovative global product Beta version – April 2009 PERYSKOP – IIF Seed Fund

Virtual shopping advisor

Recommend products on the basis of millions product reviews and technical data

Millons authentic product reviews in one place

Analyze Reviews from the whole Internet

Used technology analyzes every gathered review to determine the best products

Innovative global product

Beta version – April 2009

An advanced recommendation technology based on sophisticated A.I. algorithms applicable to numerous vertical markets „ Long Tail” activation Improved retention rate Two-fold increase in revenue per customer It is used by many high-profile customers. e_Commerce Recommendations and personalized Internet Content IPTV Personal content rating and Personal Program Guide Personal TV – IIF Seed Fund

An advanced recommendation technology based on sophisticated A.I. algorithms applicable to numerous vertical markets

„ Long Tail” activation

Improved retention rate

Two-fold increase in revenue per customer

Romanian social utility Potential to recreate success of Facebook and Nasza Klasa in Romania Scool.ro provides a virtual meeting ground for school friends Unique way of sharing school memories The social utility targets students as well as their parents IIF investment in August 2008 SCOOL – IIF Seed Fund

Romanian social utility

Potential to recreate success of Facebook and Nasza Klasa in Romania

Scool.ro provides a virtual meeting ground for school friends

Unique way of sharing school memories

The social utility targets students as well as their parents

IIF investment in August 2008

Social lending platform Launched March 2008 Loans granted: 1,1 mil. PLN Registered users: 10 000 Monetto offers: interest rates higher than in banks (for lenders as well as for borrowers) capital guarantee using social mechanisms MONETTO – IIF Seed Fund

Social lending platform

Launched March 2008

Loans granted: 1,1 mil. PLN

Registered users: 10 000

Monetto offers:

interest rates higher than in banks (for lenders as well as for borrowers)

capital guarantee

using social mechanisms

R ecommendation technology based on sophisticated algorithms Personalization is responsible for more than 35% sales Use of recommendation technology: interactive TV e-commerce Two years R&D Project co-financed from UE funds Technology and platform architecture for recommendations, interaction and personalization of multimedia content and services offered electronically SPO WKP 1.4.1 Funding : 0.4 mil. PLN Personal Sense – IIF

R ecommendation technology based on sophisticated algorithms

Personalization is responsible for more than 35% sales

Use of recommendation technology:

interactive TV

e-commerce

Two years R&D

Project co-financed from UE funds

Technology and platform architecture for recommendations, interaction and personalization of multimedia content and services offered electronically

SPO WKP 1.4.1

Funding : 0.4 mil. PLN

Leader in Semantic Web solution S oftware house acting globally E mployment 100+ people 2008 sales : 11.7 mil. PLN EBITDA : 3 mil. PLN Key clients of Software Mind Research UE PROGRAMME: SPO WKP 1.4.1 Design, creation and pilot implementation of mobile CRM system with sales recommendation module Funding: 0.8 mil. PLN SOFTWAREMIND

Leader in Semantic Web solution

S oftware house acting globally

E mployment 100+ people

2008 sales : 11.7 mil. PLN

EBITDA : 3 mil. PLN

Key clients of Software Mind

Research UE PROGRAMME:

SPO WKP 1.4.1

Design, creation and pilot implementation of mobile CRM system with sales recommendation module

Funding: 0.8 mil. PLN

Project "WeKnowIt ” uses wide experience and Software Mind knowledge in the field of semantic web solutions Seventh Framework Programme of the European Community for Research, Technological Development and Demonstration Activities Emerging, Collective Intelligence for personal, organizational and social use The main objective of WeKnowIt is to : develop novel techniques for exploiting multiple layers of intelligence from user-contributed content, which together constitute Collective Intelligence WeKnowIt – SOFTWAREMIND

Project "WeKnowIt ” uses wide experience and Software Mind knowledge in the field of semantic web solutions

Seventh Framework Programme of the European Community for Research, Technological Development and Demonstration Activities

Emerging, Collective Intelligence for personal, organizational and social use

The main objective of WeKnowIt is to :

develop novel techniques for exploiting multiple layers of intelligence from user-contributed content, which together constitute Collective Intelligence

Rafał Styczeń CEO IIF S.A. Bociana 22a 31-231 Kraków Tel. 012 614 51 73 www.iif.pl