Investor presentation
May 2005

Consolidated figures according to International Financial Reporting Standards (IFRS)[ Advertising market is growing dynamically ]Ad spend growth in 1Q05

Ad spend growth in 2005
Total

Total

10%

+13%

TV

+12%

Dailies+11%

Magazines

TV

9%

Dailies

Magazines+8%

Radio

11%

8%

7%

Radio+11%

Outdoor+34%

Outdoor12%

yoy % change

0%

25%

10%

15%

20%

25%

30%

35%

yoy % change

0%

2%

4%

6%

8%

Source: Agora’s estimates adjusted for average discount rate (data in current prices). The estimates refer to advertising expenditures in four media (TV, print, radio and outdoor),
which in case of print do not include classifieds, inserts and obituaries. The estimates are based on rate card data of AGB Polska, CR Media monitoring, Agora Monitoring and IGRZ
monitoring.

10%

12%

14%

[ Strong Agora’s performance in 1Q 2005 ]Publishing projects
enhance revenues

Agora Group (selected figures)

PLN mln

1Q05

1Q04

yoy % change

Revenues

290.6

210.2

38.2%

154.7
55.7
63.0

136.3
58.2
-13.5%
-4.3%
-

238.6

216.8

10.1%

76.9
54.8
29.9

40.7
59.5
17.2

88.9%-7.9%
73.8%

EBIT

52.0

-6.6

-EBITDA

75.6

25.0

202.4%

26.0%

11.9%

14.1pp

Net profit

43.1

-9.3

-

Employment (end of period)

3 338

3 813

-12.6%- advertising- copy sales- publishing projects

Operating cost:- materials- staff cost
- promotion and marketing

EBITDA margin

3

New projects andmarketing activities
increase cost

Strong revenue growth andrestructuring enhance
efficiency

[ Newspaper segment is growing circulation and revenues ]Copy sales on the rise

thou copies

Strong operating performance
PLN mln
250700yoy % change+ 42.5%

600

200
500

Gazeta400150

Fakt
Super Express

300

100

Rzeczpospolita

50200

100

29.6%
19.9%

0Jan

FebMarchAprMay

JuneJulyAug

SeptOctNovDecJanFeb

2004

MarchApril

May

1Q04

2005

1Q05

Revenues

yoy % change

EBIT DA

Solid market share in newspaper ads
yoy pp change

Fakt
7%
+4pp

Rzeczpospolita
9%-1ppSuper Express
4%
42.5%-1pp

Gazeta42%-2pp

Other
37%
0pp

4Source: copy sales: Circulation Audit Office; advertising: Agora, estimated data (current prices) corrected for average discount rate based on Agora Monitoring 1Q05.

[ Newspaper segment – Metro turned national ]In Warsaw:
f readership 27%
f 5% share in ad revenues

National reach:f10 cities since Nov 2004;
circulation 269 K
f19 cities since April 2005

460 000 copies
on Mondays

410 000 copies
Tuesday to Thursday

820 000 copies
on Fridays
5Source: circulation – publisher’s data; advertising: Agora, estimated data (current prices) corrected for average discount rate based on Agora Monitoring 2004; readership: PolishReadership Research (PBC Daily), SMG/KRC A Millward Brown Company, population 15+ , weekly readership, 2004

[ Newspaper segment – new revenue stream ]Books and encyclopedia prove successful
1Q revenues PLN 63 million(total PLN 121 million)
increased Gazeta’s copy salesdelivered solid profitability
40 - volume collection
June 2004 – March 2005
retail price PLN 15

20 - volumes
January 2005 – May 2005
retail price PLN 37

New collection launched in May 2005

30 volumes
Classics of the 19th century

retail price PLN 18
available every Tuesday

6May 2005 – December 2005

[ AMS on track to reach 2005 operating goals ]Solid financial performance
PLN mlnyoy % change

40+44.1%

3020

6.2

1002005
targetEBIT break even

-4.5-10

1Q04

1Q05
Revenue

EBIT DA

Share improvement

Advertising on buses¨ in 8 major cities¨ over 300 buses¨ wide range of ad forms

40%

31.3%
30%

28.3%

20%

10%

0%

1Q04

71Q05

Source: market share Izba Gospodarcza Reklamy Zewnętrznej (IGRZ) which includes: AMS SA, Cityboard Media, Clear Channel Poland, Stroeer Out of home Meda, News Outdoor Poland, Gigaboard Polska,
Mini Media/Publiprox and Business Consulting

[ Magazines on track to reach 2005 operating goals ]Good financial performance
PLN mlnyoy % change

30

20100.8*

2005
targetPositive single digit EBITDA
including Avanti

0-0.9
-10

1Q04

1Q05
Revenue

EBIT DA

Share improvement

New greenfield proves successful

Axel Springer
14%

Avantiother33%¨ debut of the year
¨ average copy sales 156 K

ZPR
3%¨ ad sales beat expectations

Logo – a new quarterly for men¨ shopping guide/ consumer features magazine

8Bauer13%

Marguard
4%* including Avanti
Source: Copy sales Circulation Audit Office, April–December 2004, Agora: Agora Monitoring, rate card data for 1Q 2005

Hachette
Filipacchi
4%

Agora
5%

+1.5pp

Edipresse
13%
Gruner+Jahr
11%

[ Radio works to lay grounds for operating improvements ]Good financial performanceyoy % change

PLN mln

14+21.9%

12108640.82

2005
targetTrack to profitability

0-2

-1.6

1Q04

1Q05
Revenues

EBIT DA

Local stations excl. new & TOK FM

Rebranding and new formula

Share improvement¨ brand management
PR-36%¨ national advertising offer

regional PR other3%
12%

yoy pp change

RMF FM26%

PR-16%Eska
10%

hot AC(Adult Contemporary)9(golden oldies)
Source: CR Media, EXPERT MONITOR, Agora’s estimates

Agora12%+1.4pp

ZET25%

[ Agora’s main priority is growth in media ]Poland is our key market

Organic growth+Acquisitions

CEE region - opportunistic

Excess cash to shareholders
10

[ Growing Agora in Poland ]Greenfields
Design/feasibility testingof projects

Acquisitions
ACQUISITIONSÃ IDENTIFYING OPPORTUNITIES Ä

OpportunisticLower investment (WK financing)Ã INVESTMENT COST ÄHigh upfront investment

High risk of failure, but easy tostop

Ã INVESTMENT RISK ÄLower risk of failure, variety ofothers risks (restructuring!)

ST: TLK, OL & BLL
LT: may substantially improve BLÃ IMPACT ON RESULTS ÄAdverse impact if IT fails.
If passed, depends on target’s
profitability

Ã MANAGEMENT Ä

Harder to manage/integrate
cultures & teams

Relatively easy to manage,
adopts same culture
Drain on management resource11

Ã HR Ä

Brings in new talent & experience[ Criteria for investment decisions ]Key rule: DCF valuation Ä Go if NPV>0Greenfields¨ Business plans with full cash
flow projections for 5-10years with terminal value¨ Investment cost and losses
taken into account as
negative flows

Discount Rate
Cost of equity:¨ Risk-free rate:
Real risk free rate based on
government bonds plus
projected inflation¨ β: Beta appropriate for thetarget, depends on the sector¨ Market risk premium:
As Poland matured and enteredEU, the premium fell to about
5%

Re=Rf+β(Rm-Rf)

Synergies

12

Discount rate appropriate forperceived risk of achieving
synergies

Acquisitions¨ NPV = Consideration paid –value of target as a standalone
business + value of synergies¨ Multiples approach as a sanitycheck[ Dividend policy ]AGORA’S POLICY FOR RETURNING PROFITS TO SHAREHOLDERS¨ Agora SA remains first and foremost focused on growth and expects to use its capital for expansion
opportunities – both acquisitions and organic growth projects - that will enhance long-term
shareholder value. At the same time, as appropriate and as authorized by the AGM, it will return
excess capital to the shareholders through a dual mechanism of (i) a dividend and (ii) sharerepurchases.

¨ The Company will propose and, upon AGM’s approval, pay a dividend of 0.5 PLN per share annually.
This dividend amount represents ca 1% yield which will satisfy certain shareholders seeking a current
return and allow the company to potentially broaden its shareholder base. The Company intends topropose such a dividend annually, subject to the discretion of the Management Board/Supervisory
Board and subject to the earnings and prospects of the Company and market conditions.

¨ If conditions warrant, the Company will also, from time to time, submit to the AGM a request forauthorization of a share repurchase program as a means of returning excess capital to shareholders.
The Company will review its situation on an annual basis, prior to the AGM, and resolve whether tosubmit such a request. If a request is submitted, it will include all relevant terms and conditions of therepurchase program. If the program is approved, the company will periodically report its results13

[ Management Board recommendation on 2004 profit distribution ]¨ Payment of a dividend in the amount of PLN 0.50 per share.
The dividend day - July 5, 2005; the dividend payment date - September 2, 2005.

¨ Company's share repurchase and redemption program in the amount of PLN 120 million,
to be executed before and until June 30, 2006.

After the AGM approves the recommendation on June 22, 2005 and before thecommencement of the program, the company shall publicly announce details concerning
the program, including its: objective, the commencement date and the duration of theprogram, the maximum number of shares to be purchased and the maximum amount tobe expended for the program.

14

[Appendix15

[ 2004 Group’s financial results ]

2004

2003

yoy % change

1 001.1
642.1
237.9
121.1
918.8

853.5
581.5
226.4
45.6
849.0

17.3%
10.4%
5.1%
165.6%
8.2%

EBIT

82.3

4.5

1728.9%

EBITDA

204.9

139.1

47.3%

EBITDA margin

20.5%

16.3%

4.2pp

Net profit

66.3

2.1

3057.1%

Employment e/y

3 387

3 849

-12.0%

PLN mln

Revenue- advertising- copy sales- other (incl. books)
Operating cost16

[ Group’s financials in 2000 – 2004 ]Revenues

Profitability
PLN mln

PLN mln

40%

300

1100

EBITDA
1000

EBITDA margin

35%

250

900

30%

800
200

700

25%600
20%

150

500
15%

400

100

300

10%

200

50
5%

100
002000

2001

2002

2003

0%

2004

2000

Net profit

PLN mln

2001

2002

2003

2004

Operating cash flow
PLN mln

200

300

Operating cash flow
Capex

250
150

200
100

150

100
50

50

00172000

2001

2002

2003

2004

2000

2001

2002

2003

2004