<Page>
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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-Q

          /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001.

                                       OR

        / / TRANSITION REPORT PURSUANT TO THE SECTION 13 OR 15(D) OF THE
                          SECURITIES EXCHANGE ACT 1934

        FROM THE TRANSITION PERIOD FROM ______________ TO ______________

                        COMMISSION FILE NUMBER 333-20307

                          POLAND COMMUNICATIONS, INC.
             (Exact Name of Registrant as Specified in Its Charter)

<Table>
<S>                                        <C>
                NEW YORK                       06-1070447
     (State or Other Jurisdiction of          (IRS Employer
     Incorporation of Organization)        Identification No.)

           4643 ULSTER STREET
               SUITE 1300
            DENVER, COLORADO                      80237
(Address of Principal Executive Officers)      (Zip Code)
</Table>

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (303) 770-4001

Indicate by check (X) whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days Yes___X___ No ______

    The number of shares outstanding of Poland Communications, Inc.'s common
stock as of June 30, 2001, was:

<Table>
<S>                           <C>
Common Stock                  18,948
</Table>

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<Page>
                          POLAND COMMUNICATIONS, INC.
                                FORM 10-Q INDEX
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

<Table>
<Caption>
                                                                           PAGE NO.
                                                                           --------
<S>          <C>                                                           <C>
PART I FINANCIAL INFORMATION
    Item 1.  Financial Statements........................................      3
             Poland Communications, Inc.
                 Consolidated Balance Sheets.............................      3
                 Consolidated Statements of Operations...................      5
                 Consolidated Statements of Comprehensive Loss...........      6
                 Consolidated Statements of Cash Flows...................      7
                 Notes to Consolidated Financial Statements..............      8

             Poland Cablevision (Netherlands) B.V
                 Consolidated Balance Sheets.............................     14
                 Consolidated Statements of Operations...................     16
                 Consolidated Statements of Comprehensive Loss...........     17
                 Consolidated Statements of Cash Flows...................     18
                 Notes to Consolidated Financial Statements..............     19

    Item 2.  Management's Discussion and Analysis of Financial Condition      25
             and Results of Operations...................................

    Item 3.  Quantitative and Qualitative Disclosures About Market            31
             Risk........................................................

PART II OTHER INFORMATION

    Item 1.  Legal Proceedings...........................................     33

    Item 2.  Changes in Securities and Use of Proceeds...................     33

    Item 3.  Defaults Upon Senior Securities.............................     33

    Item 4.  Submission of Matters to a Vote of Security Holders.........     33

    Item 5.  Other Information...........................................     33

    Item 6.  Exhibits and Reports on Form 8-K............................     33
</Table>

                                       2
<Page>
                          POLAND COMMUNICATIONS, INC.
                          CONSOLIDATED BALANCE SHEETS
                                     ASSETS

<Table>
<Caption>
                                                               JUNE 30,     DECEMBER 31,
                                                                 2001           2000
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
Current assets:
  Cash and cash equivalents.................................    $  4,936      $  1,442
  Trade accounts receivable, net of allowance for doubtful
    accounts of $6,683 in 2001 and $4,937 in 2000...........       8,140         8,968
  VAT recoverable...........................................          --           241
  Prepayments...............................................         818           510
  Other current assets......................................         853           192
                                                                --------      --------
    Total current assets....................................      14,747        11,353
                                                                --------      --------
Property, plant and equipment:
  Cable television systems assets...........................     164,054       151,417
  Construction in progress..................................       5,133         6,179
  Vehicles..................................................         739           707
  Other.....................................................      12,047        12,109
                                                                --------      --------
                                                                 181,973       170,412
  Less accumulated depreciation.............................     (41,435)      (28,147)
                                                                --------      --------
    Net property, plant and equipment.......................     140,538       142,265

Inventories for construction................................       5,814         5,686
Intangibles, net............................................     360,885       359,568
                                                                --------      --------
    Total assets............................................    $521,984      $518,872
                                                                ========      ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       3
<Page>
                          POLAND COMMUNICATIONS, INC.
                    CONSOLIDATED BALANCE SHEETS (CONTINUED)
                      LIABILITIES AND STOCKHOLDER'S EQUITY

<Table>
<Caption>
                                                               JUNE 30,     DECEMBER 31,
                                                                 2001           2000
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
Current liabilities:
  Accounts payable and accrued expenses.....................   $  17,303      $ 28,343
  Accrued interest..........................................         240           236
  Deferred revenue..........................................       2,656         2,182
  VAT Payable...............................................       1,767            --
  Due to affiliates and parent..............................      39,297        38,316
                                                               ---------      --------
    Total current liabilities...............................      61,263        69,077
                                                               ---------      --------
Long-term liabilities:
  Notes payable and other payables to parent................      23,203        23,269
  Notes payable.............................................      15,074        15,344
                                                               ---------      --------
    Total liabilities.......................................      99,540       107,690
                                                               ---------      --------
Redeemable preferred stock (liquidation value $60,000,000;
  6,000 shares authorized, issued and outstanding)..........      41,124        38,858
Mandatorily Redeemable Debenture Stock, 30,000 shares
  authorized; 14,000 shares issued and outstanding
  (including accrued dividend)..............................     164,395       156,566

Commitments and contingencies (note 7)

Stockholder's equity:
  Common stock, $.01 par value; 27,000 shares authorized,
    18,948 shares issued and outstanding....................           1             1
  Paid-in capital...........................................     340,264       332,579
  Accumulated other comprehensive loss......................     (20,333)      (37,182)
  Accumulated deficit.......................................    (103,007)      (79,640)
                                                               ---------      --------
    Total stockholder's equity..............................     216,925       215,758
                                                               ---------      --------
    Total liabilities and stockholder's equity..............   $ 521,984      $518,872
                                                               =========      ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       4
<Page>
                          POLAND COMMUNICATIONS, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<Table>
<Caption>
                                                       THREE MONTHS ENDED        SIX MONTHS ENDED
                                                            JUNE 30,                 JUNE 30,
                                                      ---------------------   -----------------------
                                                        2001        2000         2001         2000
                                                      --------   ----------   ----------   ----------
                                                           (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                   <C>        <C>          <C>          <C>
Cable television revenue............................  $ 20,186   $   17,177   $   38,914   $   34,030
                                                      --------   ----------   ----------   ----------

Operating expenses:
  Direct operating expenses charged by third
    parties.........................................     6,765        5,058       12,649       10,574
  Direct operating expenses charged by affiliates...     5,943        3,246       12,419        9,315
  Selling, general and administrative expenses......     5,111        8,491       11,727       12,711
  Depreciation and amortization.....................    14,252       11,086       27,364       22,591
                                                      --------   ----------   ----------   ----------
Total operating expenses............................    32,071       27,881       64,159       55,191
                                                      --------   ----------   ----------   ----------

  Operating loss....................................   (11,885)     (10,704)     (25,245)     (21,161)

Interest income.....................................       105           38          162          105
Interest expense....................................      (591)        (686)      (1,198)      (1,298)
Non operating expense...............................        --           --         (205)          --
Foreign exchange gain/(loss), net...................     2,195       (4,680)       3,202       (5,110)
                                                      --------   ----------   ----------   ----------

  Loss before income taxes..........................   (10,176)     (16,032)     (23,284)     (27,464)

Income tax expense..................................       (47)         (22)         (83)         (40)
                                                      --------   ----------   ----------   ----------

  Net loss..........................................   (10,223)     (16,054)     (23,367)     (27,504)
  Accretion of redeemable preferred stock...........    (1,149)      (1,026)      (2,266)      (2,023)
  Accrued dividend on Mandatorily Redeemable
    Debenture Stock.................................    (3,915)      (3,500)      (7,829)      (7,000)
                                                      --------   ----------   ----------   ----------
Net loss applicable to holders of common stock......  $(15,287)  $  (20,580)  $  (33,462)  $  (36,527)
                                                      ========   ==========   ==========   ==========
Basic loss per common share.........................  $(806.79)  $(1,086.13)  $(1,765.99)  $(1,927.75)
                                                      ========   ==========   ==========   ==========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       5
<Page>
                          POLAND COMMUNICATIONS, INC.
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                                  (UNAUDITED)

<Table>
<Caption>
                                                       THREE MONTHS ENDED     SIX MONTHS ENDED
                                                            JUNE 30,              JUNE 30,
                                                       -------------------   -------------------
                                                         2001       2000       2001       2000
                                                       --------   --------   --------   --------
                                                                    (IN THOUSANDS)
<S>                                                    <C>        <C>        <C>        <C>
Net loss.............................................  $(10,223)  $(16,054)  $(23,367)  $(27,504)
Other comprehensive (loss) / income:
  Translation adjustment.............................    12,320    (24,345)    16,849    (23,495)
                                                       --------   --------   --------   --------
Comprehensive loss...................................  $  2,097   $(40,399)  $ (6,518)  $(50,999)
                                                       ========   ========   ========   ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       6
<Page>
                          POLAND COMMUNICATIONS, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<Table>
<Caption>
                                                              SIX MONTHS ENDED   SIX MONTHS ENDED
                                                               JUNE 30, 2001      JUNE 30, 2000
                                                              ----------------   ----------------
                                                                        (IN THOUSANDS)
<S>                                                           <C>                <C>
Cash flows from operating activities:
  Net loss..................................................      $(23,367)          $(27,504)
  Adjustments to reconcile net loss to net cash provided by
    operating activities:
    Depreciation and amortization...........................        27,364             22,591
    Unrealized foreign exchange (gains)/losses..............        (3,022)             3,084
    Changes in operating assets and liabilities:
      Accounts receivable...................................         1,179             (2,490)
      Other current assets..................................          (605)             1,497
      Accounts payable......................................        (3,729)            (7,012)
      Accrued interest......................................             4                 (7)
      Amounts due to affiliates and parent..................        (1,646)             4,255
      Deferred revenue......................................           119              1,461
      Other.................................................           151                 --
                                                                  --------           --------
        Net cash provided by operating activities...........        (3,552)            (4,125)
                                                                  --------           --------
Cash flows from investing activities:
  Construction and purchase of property, plant and
    equipment...............................................        (9,022)            (5,790)
  Purchase of intangibles...................................          (155)              (398)
                                                                  --------           --------
        Net cash used in investing activities...............        (9,177)            (6,188)
                                                                  --------           --------
Cash flows from financing activities:
  Proceeds from parent......................................        16,259             13,300
  Repayment of notes payable................................          (243)              (763)
                                                                  --------           --------
        Net cash provided by financing activities...........        16,016             12,537
                                                                  --------           --------
        Net increase in cash and cash equivalents...........         3,287              2,224
Effect of exchange rates on cash and cash equivalents.......           207                (82)
Cash and cash equivalents at beginning of period............         1,442              3,374
                                                                  --------           --------
Cash and cash equivalents at end of period..................      $  4,936           $  5,516
                                                                  ========           ========
Supplemental cash flow information:
  Cash paid for interest....................................      $    762           $    880
                                                                  ========           ========
  Cash paid for income taxes................................      $     85           $     31
                                                                  ========           ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       7
<Page>
                          POLAND COMMUNICATIONS, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 2001 AND 2000

1. BASIS OF PRESENTATION

    The information furnished by Poland Communications, Inc. and its
subsidiaries("PCI" or the "Company") has been prepared in accordance with
generally accepted accounting principles in the United States ("U.S. GAAP") and
the rules and regulations of the Securities and Exchange Commission (the "SEC").
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with U.S. GAAP have been condensed
or omitted pursuant to the rules and regulations. The accompanying consolidated
balance sheets, statements of operations, statements of comprehensive loss and
statements of cash flows are unaudited but in the opinion of management reflect
all adjustments (consisting only of items of a normal recurring nature) which
are necessary for a fair statement of the Company's consolidated results of
operations and cash flows for the interim periods and the Company's financial
position as of June 30, 2001. The accompanying unaudited consolidated financial
statements should be read in conjunction with the audited consolidated financial
statements and the notes thereto included in the Company's 2000 Annual Report on
Form 10-K filed with the SEC (the "2000 Annual Report"). The interim financial
results are not necessarily indicative of the results for the full year.

2. CONSUMMATION OF UPC TENDER OFFER AND MERGER

    On June 2, 1999, UPC Polska, Inc. ("UPC Polska", and formerly @
Entertainment, Inc.), the Company's parent, entered into an Agreement and Plan
of Merger (the "Merger Agreement") with United Pan-Europe Communications N.V.
("UPC"), whereby UPC and its wholly-owned subsidiary, Bison Acquisition Corp.
("Bison"), initiated a tender offer to purchase all of the outstanding shares of
UPC Polska in an all cash transaction valuing UPC Polska's shares of common
stock at $19.00 per share.

    The tender offer, initiated pursuant to the Merger Agreement, closed at
12:00 midnight on August 5, 1999. On August 6, 1999, Bison reported that it had
accepted for payment a total of 33,701,073 shares of UPC Polska's common stock
(including 31,208 shares tendered pursuant to notices of guaranteed delivery)
representing approximately 99% of UPC Polska's outstanding shares of common
stock (the "Acquisition"). In addition, UPC acquired 100% of the outstanding
Series A and Series B 12% Cumulative Preference Shares of UPC Polska and
acquired all of the outstanding warrants and stock options.

    Also on August 6, 1999, Bison was merged with and into UPC Polska with UPC
Polska continuing as the surviving corporation (the "Merger"). Accordingly, UPC
Polska became a wholly-owned subsidiary of UPC. UnitedGlobalCom, Inc. is the
majority stockholder of UPC. The Company believes that a Change of Control (as
defined in the indentures governing the UPC Polska and PCI notes) occurred on
August 6, 1999 as a result of the Acquisition and Merger.

    The Acquisition was accounted for under the purchase method of accounting,
with all of the purchase accounting adjustments "pushed-down" to the
consolidated financial statements of UPC Polska. Accordingly, the purchase price
was allocated to the underlying assets and liabilities based upon their
estimated fair values and any excess to goodwill. UPC Polska restated some of
its assets and liabilities on August 5, 1999. At this date, the Notes of UPC
Polska and PCI were restated to reflect the market value and as a result were
increased by $61.9 million and deferred financing costs of $16.1 million and
deferred revenues of $2.0 million were written down to zero. The consideration
paid by UPC for all outstanding shares, warrants and options totaled
$812.5 million. At this time UPC

                                       8
<Page>
                          POLAND COMMUNICATIONS, INC.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

Polska had negative net assets of approximately $53.3 million and existing
goodwill at net book value of $37.5 million, which was realized on previous
transactions. As a result of the above considerations, UPC realized goodwill of
approximately $979.3 million. As a result of the Acquisition, UPC pushed down
its basis to UPC Polska establishing a new basis of accounting as of the
Acquisition date. During the year ended December 31, 2000 this figure increased
by $12.3 million to $991.6 million mainly due to the results of an arbitration
between UPC Polska and Telewizyjna Korporacja Partycypacyjna ("TKP"). UPC Polska
allocated goodwill between the business segments based on the investment model
used for the acquisition. The Company was allocated approximately
$417.1 million of goodwill.

3. FINANCIAL POSITION AND BASIS OF ACCOUNTING

    These consolidated financial statements have been prepared on a going
concern basis which contemplates the continuation and expansion of trading
activities as well as the realization of assets and liquidation of liabilities
in the ordinary course of business. Cable television operators typically
experience losses and negative cash flow in their initial years of operation due
to the large capital investment required for the construction or acquisition of
their cable networks and the administrative costs associated with commencing
operations. Consistent with this pattern, the Company has incurred substantial
operating losses since inception. As of June 30, 2001 the Company had negative
working capital. Additionally, the Company is currently and is expected to
continue to be highly leveraged. The ability of the Company to meet its debt
service obligations will depend on the future operating performance and
financial results of the Company as well as its ability to obtain additional
third party financing to support the planned expansion, as well as obtaining
additional financing from its ultimate parent, UPC. The Company's current cash
on hand will be insufficient to satisfy all of its commitments and to complete
its current business plan.

    Management of the Company believes that significant opportunities exist for
pay television providers capable of delivering high quality, Polish-language
programming on a multi-channel basis and other services on cable (i.e. data and
telephony). As such, the Company has focused its financial and business efforts
toward its position in the cable market. The Company's business strategy is
designed to increase its market share and subscriber base and to maximize
revenue per subscriber. To accomplish its objectives and to capitalize on its
competitive advantages, the Company intends to (i) develop and control the
content of programming on its cable systems; (ii) increase its distribution
capabilities through internal growth and through acquisitions; (iii) control its
management of subscribers by using advanced integrated management information
systems; and (iv) provide additional revenue generating services to its
customers. If the Company's plans or assumptions change, if its assumptions
prove inaccurate, if it consummates unanticipated investments in or acquisitions
of other companies, if it experiences unexpected costs or competitive pressures,
or if existing cash, and projected cash flow from operations prove to be
insufficient, the Company may need to obtain greater amounts of additional
financing. While it is the Company's intention to enter only into new financing
or refinancing that it considers advantageous, there can be no assurance that
such sources of financing would be available to the Company in the future, or,
if available, that they could be obtained on terms acceptable to the Company.
The Company is solely dependent on its ultimate parent, UPC, to provide
financing to achieve the Company's business strategy. UPC has declared that it
will continue to financially support PCI and its subsidiaries as a going
concern, and accordingly enable the Company and its subsidiaries to meet their
financial obligations if and when needed, for the period at least through
January 31, 2002.

    Several of the Company's Polish subsidiaries have statutory shareholders'
equity less than the legally prescribed limits because of accumulated losses. As
required by Polish law, the management of

                                       9
<Page>
                          POLAND COMMUNICATIONS, INC.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

these companies will have to make decisions on how to increase the shareholders'
equity to be in compliance with the Polish Commercial Code. The Company is
currently considering several alternatives, including the conversion of
intercompany debt into equity, in order to resolve these deficiencies.

4. IMPACT OF A NEW ACCOUNTING STANDARD ADOPTION

    In June 2001, the Financial Accounting Standards Board authorised the
issuance of Statement of Financial accounting Standards No. 141, BUSINESS
COMBINATIONS ("SFAS 141") and Statement of Financial Accounting Standards
No. 142, GOODWILL AND OTHER INTANGIBLE ASSETS ("SFAS 142"). SFAS 141 requires
the use of the purchase method of accounting for all business combinations
initiated after June 30, 2001. SFAS 141 requires identifiable intangible assets
acquired in a business combination to be recognised if they arise from
contractual or legal rights or are "separable", i.e., it is feasible that they
may be sold, transferred, licensed, rented, exchanged or pledged.

    Under SFAS 142, goodwill and intangible assets with indefinite lives will
not be amortized, but will be tested for impairment on an annual basis and
whenever indicators of impairment arise. The goodwill impairment test, which is
based on fair value, is to be performed on a reporting unit level. Goodwill will
no longer be allocated to other long-lived assets for impairment testing under
SFAS No. 121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR
LONG-LIVED ASSETS TO BE DISPOSED OF. Additionally, goodwill on equity method
investments will no longer be amortised; however, it will continue to be tested
for impairment in accordance with Accounting Principles Board Opinion No. 18,
THE EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS IN COMMON STOCK. Under SFAS 142
intangible assets with indefinite lives will be carried at the lower cost or
market value. All other recognised intangible assets will continue to be
amortised over their estimated useful lives.

    SFAS 142 is effective for fiscal years beginning after December 15, 2001,
although goodwill on business combinations consummated after July 1, 2001 will
not be amortised. On adoption the Company may need to record a cumulative effect
adjustment to reflect the impairment of previously recognised intangible assets.
In addition, goodwill on prior business combinations will cease to be amortised.
The Company has not determined the impact that these statements will have on
intangible assets or whether a cumulative effect adjustment will be required
upon adoption.

    Effective January 1, 2001, the Company adopted SFAS 133, which establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
All derivatives, whether designated in hedging relationships or not, are
required to be recorded on the balance sheet at fair value. The adoption of
SFAS 133 on January 1, 2001, resulted in no impact to income. The Company's debt
is all fixed rate and denominated in Euros or U.S. dollars. The Company does not
use derivative instruments to manage exposures to foreign currency or interest
rate risks.

5. RECLASSIFICATIONS

    Certain amounts have been reclassified in the correspondiong period's
unaudited consolidated financial statement to conform to the unaudited
consolidated financial statement presentation for the three and six months ended
June 30, 2001.

                                       10
<Page>
                          POLAND COMMUNICATIONS, INC.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

6. LOSS PER SHARE

    Basic loss per ordinary share is based on the weighted average number of
ordinary shares outstanding of 18,948 for the three and six month periods ended
June 30, 2001 and 2000.

7. COMMITMENTS AND CONTINGENCIES

BUILDING LEASE

    The Company leases several offices and warehouses within Poland under
cancelable operating lease terms. Minimum future lease commitments for the
aforementioned building leases relate to 2001 and 2002 only. The future minimum
lease commitments related to these building leases approximates $315,000 in 2001
and $30,000 in 2002 as of June 30, 2001.

CAR LEASES

    The Company has operating car leases with various leasing companies in
Poland. Minimum future lease commitments for the aforementioned car leases as of
June 30, 2001 are $212,000 in 2001, $370,000 in 2002 and $7,000 in 2003.

CONDUIT LEASES

    The Company also leases space within various telephone duct systems from the
Polish national telephone company (known in the Polish telecommunication
industry as "TPSA") under cancelable operating leases. The TPSA leases expire at
various times, and a substantial portion of the Company's contracts with TPSA
permit termination by TPSA without penalty at any time either immediately upon
the occurrence of certain conditions or upon provision of three to six months
notice without cause. All of the agreements provide that TPSA is the manager of
the telephone duct system and will lease space within the ducts to the Company
for installation of cable and equipment for the cable television systems. Some
conduit agreements with TPSA provide that cables can be installed in the conduit
only for the use of the cable television. If the Company uses the cables for a
purpose other than cable television, such as data transmission, telephone, or
Internet access, such use could be considered a violation of the terms of
certain conduit agreements, unless this use is expressly authorized by TPSA.
There is no guarantee that TPSA would give its approval to permit other uses of
the conduits. The Company has introduced Internet services to certain of its
cable and D-DTH customers, and is in the process of renegotiating certain
conduit agreements with TPSA. The lease agreements provide for monthly lease
payments that are adjusted quarterly or annually, except for the Gdansk lease
agreement which provides for an annual adjustment after the sixth year and then
remains fixed through the tenth year of the lease. Minimum future lease
commitments for the aforementioned conduit leases relate to 2001 and 2002 only,
as all leases are cancelable in accordance with the aforementioned terms. The
future minimum lease commitments related to these conduit leases approximates
$615,000 in 2001 and $66,000 in 2002 as of June 30, 2001.

PROGRAMMING COMMITMENTS

    The Company has entered into long-term programming agreements and agreements
for the purchase of certain exhibition or broadcast rights with a number of
third party and affiliated content providers for its cable systems. The
agreements have terms which range from one to five years and require that the
license fees be paid either at a fixed amount payable at the time of execution
or based upon a guaranteed minimum number of subscribers connected to the system
each month. At June 30,

                                       11
<Page>
                          POLAND COMMUNICATIONS, INC.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

2001, the Company had an aggregate minimum commitment in relation to these
agreements of approximately $80,708,000 over the next six years, approximating
$13,173,000 in 2001, $27,150,000 in 2002, $20,570,000 in 2003, $12,326,000 in
2004 and $7,489,000 in 2005 and thereafter.

REGULATORY APPROVALS

    The Company is in the process of obtaining permits from the Chairman of the
Office for Telecommunication Regulation ("URT") for several of its cable
television systems. If these permits are not obtained, URT could impose
penalties such as fines or in severe cases, revocation of all permits held by an
operator or the forfeiture of the operator's cable networks. Management of the
Company does not believe that these pending approvals result in a significant
risk to the Company. Additionally, in March 2001, a subsidiary of PCI notified
the Chairman of the URT of its activities concerning the provision of data
transmission service and access to the Internet. The Chairman had 21 days to
respond to the Company's notification. Since no response was received from the
Chairman of URT, it is assumed that the Company is legally entitled to provide
the data transmission services and access to the Internet as described in the
notification.

LITIGATION AND CLAIMS

    From time to time, the Company is subject to various claims and suits
arising out of the ordinary course of business. While the ultimate result of all
such matters is not presently determinable, based upon current knowledge and
facts, management does not expect that their resolution will have a material
adverse effect on the Company's consolidated financial position or results of
operations.

PROCEEDING RELATING TO HBO POLSKA

    Two of the Company's cable television subsidiaries and four other unrelated
Polish cable operators and HBO Polska Sp. z o.o., have been made defendants in a
lawsuit instituted by Polska Korporacja Telewizyjna Sp. z o.o., a subsidiary of
Canal+. The primary defendant in the proceedings is HBO Polska Sp. z o.o. which
is accused of broadcasting the HBO television program in Poland without a
license from the Council as required by the Radio and Television Act of 1992, as
amended, and thereby undertaking an activity constituting an act of unfair
competition. The Company does not believe that the final disposition of the
lawsuit will have a material adverse effect on its consolidated financial
position or results of operations.

DIVIDEND RESTRICTIONS

    The Company's Polish subsidiaries are only able to distribute dividends to
the extent of accounting profit determined in accordance with Polish accounting
principles. As of June 30, 2001 the Company's Polish subsidiaries have no profit
available for distribution as dividends.

PCBV MINORITY STOCKHOLDER'S CLAIM

    On or about July 8, 1999, certain minority shareholders ("the minority
shareholders") of the Company's subsidiary Poland Cablevision (Netherlands) B.V.
("PCBV"), filed a lawsuit against PCI and certain other defendants, in United
States District Court, Southern District of Ohio, Eastern Division, Civil Action
No. C2-99-621. The relief sought by the minority shareholders includes:
(1) unspecified damages in excess of $75,000, (2) an order lifting the
restrictions against transfer of shares set forth in the Shareholders' Agreement
among PCBV's shareholders, as amended (the "Shareholders'

                                       12
<Page>
                          POLAND COMMUNICATIONS, INC.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

Agreement") so that the minority shareholders can liquidate their shares in
PCBV, (3) damages in the amount of 1.7 percent of the payment made by UPC for
the shares of the Company as set forth in the Agreement and Plan of Merger
between UPC Polska and UPC dated June 2, 1999, and (4) attorneys' fees and costs
incurred in prosecuting the lawsuit.

    The amended complaint sets forth eight claims for relief based on
allegations that the defendants, including UPC Polska and the Company, committed
the following wrongful acts: (1) breached a covenant not to compete contained in
the Shareholders' Agreement relating to the shareholders of PCBV, (2) breached a
covenant in the Shareholders' Agreement requiring that any contract entered into
by PCBV with any other party affiliated with PCI be commercially reasonable or
be approved by certain of the minority shareholders, (3) breached a provision in
the Shareholders' Agreement that allegedly required co-defendant Chase
International Corp. ("CIC") to offer the minority shareholders the right to
participate in certain sales of PCBV shares and that required CIC to give
written notice of any offer to purchase the minority shareholders' shares in
PCBV, (4) breached their fiduciary duties to the minority shareholders,
(5) breached the agreement between PCBV and CIC, which allegedly limited the
amount of management fees that could be paid annually by PCBV, (6) made false
and misleading statements in various documents filed with the Securities and
Exchange Commission, (7) colluded to defraud the minority shareholders by
failing to make reference in certain Forms 8-K, 8-KA and 14D-1 to the minority
shareholders or their alleged rights and claims, (8) colluded to divert assets
of PCBV to affiliates of PCI and PCBV, including the Company, that allegedly
compete with PCI and PCBV.

    On or about March 31, 2000 the parties to the lawsuit reached a settlement.
In accordance with the settlement, on June 2, 2000, Wizja TV B.V., an affiliate
of Company's Parent, purchased approximately 1.4% of the outstanding shares of
PCBV for a price of approximately $2.2 million. The case has been dismissed and
releases exchanged.

    The aforementioned settlement does not include the remaining minority
shareholders of PCBV.

    In addition to the Ohio lawsuit, other minority shareholders of PCBV
(representing an additional approximately 6% of the shares of PCBV, hereinafter
the "Reece Group") have asserted claims against the past and present directors
or officers of, or members of the Board of Managers of, the Company, PCBV and
UPC Polska or one or more controlling shareholders of UPC Polska but have not
yet filed suit.

    The claims by the Reece Group consist of allegations previously made by
Reece Communications, Inc. ("RCI"). RCI's allegations were premised on, among
other things, alleged acts, errors, omissions, misstatements, misleading
statements or breaches of duty by the aforementioned officers, directors, or
controlling shareholders. UPC Polska has negotiated a settlement of those claims
and a simultaneous purchase of the Reece Group's PCBV shares, as well as the
purchase of all other shares of PCBV held by other minority shareholders and a
settlement of their claims. In exchange for the release of claims and the
transfer of all outstanding shares in PCBV held by minority shareholders, UPC
Polska and/or its affiliates will pay in the aggregate approximately
$3.6 million in cash at closing and issue promissory notes for $17 million,
which promissory notes accrue interest at 7% per annum and are payable in
increments over a period of 36 months in cash or UPC common stock at the payor's
election. Those transactions are anticipated to close in August 2001.

8. CASH FLOW INFORMATION

    During the six month period ended June 30, 2001 $17,780,000 of liability to
the Company's parent was converted into paid-in capital.

                                       13
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                          CONSOLIDATED BALANCE SHEETS
                                     ASSETS

<Table>
<Caption>
                                                               JUNE 30,     DECEMBER 31,
                                                                 2001           2000
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
Current assets:
  Cash and cash equivalents.................................    $  4,386      $  1,159
  Trade accounts receivable, net of allowances of $6,145 in
    2001 and $4,392 in 2000.................................       7,966         8,549
  VAT recoverable...........................................          --           295
  Prepayments...............................................         797           510
  Other current assets......................................         728           159
                                                                --------      --------
      Total current assets..................................      13,877        10,672
                                                                --------      --------

  Property, plant and equipment:
    Cable television system assets..........................     128,133       117,307
    Construction in progress................................       5,060         6,050
    Vehicles................................................         522           473
    Other...................................................      11,957        11,967
                                                                --------      --------
                                                                 145,672       135,797

      Less accumulated depreciation.........................     (32,954)      (22,412)
                                                                --------      --------
      Net property, plant and equipment.....................     112,718       113,385

Inventories for construction................................       5,561         5,400
Intangible assets, net......................................     314,571       315,923
                                                                --------      --------

      Total assets..........................................    $446,727      $445,380
                                                                ========      ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       14
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                    CONSOLIDATED BALANCE SHEETS (CONTINUED)
                      LIABILITIES AND STOCKHOLDERS' EQUITY

<Table>
<Caption>
                                                               JUNE 30,     DECEMBER 31,
                                                                 2001           2000
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
Current liabilities:
  Accounts payable and accrued expenses.....................   $  15,266      $ 26,359
  Deferred revenue..........................................       2,517         2,182
  VAT Payable...............................................       1,666            --
  Due to affiliate..........................................      37,272        22,864
                                                               ---------      --------
    Total current liabilities...............................      56,721        51,405
                                                               ---------      --------

Long term liabilities:
  Notes payable and other payables to PCI...................     258,689       248,524
                                                               ---------      --------
    Total liabilities.......................................     315,410       299,929
                                                               ---------      --------

Commitments and contingencies (note 7)
  Minority interest.........................................         302           281

Stockholders' equity:
  Capital stock par value, $0.50 par; 200,000 shares
    authorized, issued and outstanding......................         100           100
  Paid-in capital...........................................     267,564       267,564
  Accumulated other comprehensive loss......................     (18,188)      (33,077)
  Accumulated deficit.......................................    (118,461)      (89,417)
                                                               ---------      --------
    Total stockholders' equity..............................     131,015       145,170
                                                               ---------      --------
    Total liabilities and stockholders' equity..............   $ 446,727      $445,380
                                                               =========      ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       15
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<Table>
<Caption>
                                                          THREE MONTHS           SIX MONTHS
                                                         ENDED JUNE 30,        ENDED JUNE 30,
                                                       -------------------   -------------------
                                                         2001       2000       2001       2000
                                                       --------   --------   --------   --------
                                                         (IN THOUSANDS)        (IN THOUSANDS)
<S>                                                    <C>        <C>        <C>        <C>
Cable television revenue.............................  $ 19,092   $ 16,185   $ 36,745   $ 32,109
                                                       --------   --------   --------   --------

Operating expenses:
  Direct operating expenses charged by third
    parties..........................................     6,423      5,501     12,015     10,288
  Direct operating expenses charged by affiliates....     6,531      5,146     13,559     10,450
  Selling, general and administrative expenses.......     4,566      5,801     10,756     10,004
  Depreciation and amortization......................    12,647     10,590     23,689     20,482
                                                       --------   --------   --------   --------
    Total operating expenses.........................    30,167     27,038     60,019     51,224
                                                       --------   --------   --------   --------

    Operating loss...................................   (11,075)   (10,853)   (23,274)   (19,115)

Interest income......................................       107         39        160        105
Interest expense.....................................    (4,139)    (3,785)    (8,352)    (7,301)
Foreign exchange gain/(loss), net....................     1,692     (4,277)     2,496     (4,679)
                                                       --------   --------   --------   --------

    Loss before income taxes and minority interest...   (13,415)   (18,876)   (28,970)   (30,990)

Minority interest in subsidiary loss.................       (15)        --        (21)        --
Income tax expense...................................       (33)        (8)       (53)       (24)
                                                       --------   --------   --------   --------

    Net loss.........................................  $(13,463)  $(18,884)  $(29,044)  $(31,014)
                                                       ========   ========   ========   ========
    Basic loss per common share......................  $ (67.32)  $ (94.42)  $(145.22)  $(155.07)
                                                       ========   ========   ========   ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       16
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                                  (UNAUDITED)

<Table>
<Caption>
                                                       THREE MONTHS ENDED     SIX MONTHS ENDED
                                                            JUNE 30,              JUNE 30,
                                                       -------------------   -------------------
                                                         2001       2000       2001       2000
                                                       --------   --------   --------   --------
                                                                    (IN THOUSANDS)
<S>                                                    <C>        <C>        <C>        <C>
Net loss.............................................  $(13,463)  $(18,884)  $(29,044)  $(31,014)

Other comprehensive (loss) / income:
  Cumulative translation adjustment..................    10,923    (21,375)    14,889    (20,635)
                                                       --------   --------   --------   --------
Comprehensive loss...................................  $ (2,540)  $(40,259)  $(14,155)  $(51,649)
                                                       ========   ========   ========   ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       17
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<Table>
<Caption>
                                                              SIX MONTHS ENDED   SIX MONTHS ENDED
                                                               JUNE 30, 2001      JUNE 30, 2000
                                                              ----------------   ----------------
                                                                        (IN THOUSANDS)
<S>                                                           <C>                <C>
Cash flows from operating activities:
  Net loss..................................................      $(29,044)          $(31,014)
  Adjustments to reconcile net loss to net cash provided by
    operating activities:
    Minority interest.......................................            21                 --
    Depreciation and amortization...........................        23,689             20,482
    Interest expense added to notes payable to PCI..........         8,353              7,233
    Unrealized foreign exchange (gains)/losses..............        (2,475)             2,676
    Other...................................................           116                 --
    Changes in operating assets and liabilities:
      Accounts receivable...................................           918             (2,478)
      Other current assets..................................          (485)             1,317
      Accounts payable......................................        (5,385)            (7,143)
      Deferred revenue......................................           250              1,453
      Amounts due to affiliates and parent..................         8,670              1,359
                                                                  --------           --------
        Net cash provided by operating activities...........         4,628             (6,115)
                                                                  --------           --------

Cash flows from investing activities:
  Construction and purchase of property, plant and
    equipment...............................................        (8,858)            (5,447)
  Purchase of intangible assets.............................          (138)              (278)
                                                                  --------           --------
        Net cash used in investing activities...............        (8,996)            (5,725)
                                                                  --------           --------

Cash flows from financing activities:
  Proceeds from borrowings from affiliates..................         7,550             13,313
                                                                  --------           --------
        Net cash provided by financing activities...........         7,550             13,313
                                                                  --------           --------
        Net increase in cash................................         3,182              1,473

Effect of exchange rates on cash and cash equivalents.......            45                (69)
Cash and cash equivalents at beginning of the period........         1,159              2,838
                                                                  --------           --------
Cash and cash equivalents at end of the period..............      $  4,386           $  4,242
                                                                  ========           ========

Supplemental cash flow information:
  Cash paid for interest....................................      $     32           $     --
                                                                  ========           ========
  Cash paid for income taxes................................      $     54           $     17
                                                                  ========           ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       18
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 2001 AND 2000

1. BASIS OF PRESENTATION

    Financial information is included for Poland Cablevision (Netherlands) B.V.
and its subsidiaries ("PCBV" or the "Company") as PCBV is a guarantor of PCI's
9 7/8% Senior Notes due 2003 and 9 7/8% Series B Senior Notes due 2003,
(collectively, the "PCI Notes"). The information furnished by PCBV has been
prepared in accordance with generally accepted accounting principles in the
United States ("U.S. GAAP") and the rules and regulations of the Securities and
Exchange Commission ("SEC"). Certain information and footnote disclosures
normally included in annual financial statements prepared in accordance with
U.S. GAAP have been condensed or omitted pursuant to the rules and regulations.
The accompanying consolidated balance sheets, statements of operations,
statements of comprehensive loss and statements of cash flows are unaudited but
in the opinion of management reflect all adjustments (consisting only of items
of a normal recurring nature) which are necessary for a fair statement of PCBV's
consolidated results of operations and cash flows for the interim periods and
PCBV's financial position as of June 30, 2001. The accompanying unaudited
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements of PCBV and the notes thereto included in
PCI's 2000 Annual Report on Form 10-K filed with the SEC. The interim financial
results are not necessarily indicative of the results of the full year.

2. CONSUMMATION OF UPC TENDER OFFER AND MERGER

    On June 2, 1999, PCBV's indirect parent UPC Polska, Inc. ("UPC Polska")
entered into an Agreement and Plan of Merger with United Pan-Europe
Communications N.V. ("UPC"), whereby UPC and its wholly-owned subsidiary, Bison
Acquisition Corp. ("Bison"), initiated a tender offer to purchase all of the
outstanding shares of UPC Polska in an all cash transaction valuing UPC Polska's
shares of common stock at $19.00 per share.

    The tender offer, initiated pursuant to the Agreement and Plan of Merger
with UPC and Bison, closed at 12:00 midnight on August 5, 1999. On August 6,
1999, Bison reported that it had accepted for payment a total of 33,701,073
shares of UPC Polska's common stock (including 31,208 shares tendered pursuant
to notices of guaranteed delivery) representing approximately 99% of UPC
Polska's outstanding shares of common stock (the "Acquisition"). In addition UPC
acquired 100% of the outstanding Series A and Series B 12% Cumulative Preference
Shares of UPC Polska and acquired all of the outstanding warrants and stock
options.

    Also on August 6, 1999, Bison was merged with and into UPC Polska with UPC
Polska continuing as the surviving corporation (the "Merger"). Accordingly, UPC
Polska became a wholly-owned subsidiary of UPC. UnitedGlobalCom, Inc. is the
majority stockholder of UPC. The Company believes that a Change of Control (as
defined in the indentures governing the UPC Polska and PCI Notes) occurred on
August 6, 1999 as a result of the Acquisition and Merger.

    The Acquisition was accounted for under the purchase method of accounting,
with all of the purchase accounting adjustments "pushed-down" to the
consolidated financial statements of UPC Polska. Accordingly, the purchase price
was allocated to the underlying assets and liabilities based upon their
estimated fair values and any excess to goodwill. UPC Polska restated some of
its assets and liabilities on August 5, 1999. At this date, the Notes of UPC
Polska and PCI were restated to reflect the market value and as a result were
increased by $61.9 million and deferred financing costs of $16.1 million and
deferred revenues of $2.0 million were written down to zero. The consideration
paid by UPC for all shares outstanding, warrants and options totaled
$812.5 million. At that time UPC

                                       19
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

Polska had negative net assets of approximately $53.3 million and existing
goodwill at net book value of $37.5 million which was realized on previous
transactions. As a result of the above considerations, UPC realized goodwill of
$979.3 million. As a result of the Acquisition, UPC pushed down its basis to UPC
Polska establishing a new basis of accounting as of the Acquisition date. During
the year ended December 31, 2000 this figure increased by $12.3 million to
$991.6 million mainly due to the results of an arbitration between UPC Polska
and Telewizyjna Korporacja Partycypacyjna ("TKP"). UPC Polska allocated goodwill
between the business segments based on the investment model used for
acquisition. PCBV was allocated approximately $354 million of goodwill.

3. FINANCIAL POSITION AND BASIS OF ACCOUNTING

    These consolidated financial statements have been prepared on a going
concern basis which contemplates the continuation and expansion of trading
activities as well as the realization of assets and liquidation of liabilities
in the ordinary course of business. Cable television operators typically
experience losses and negative cash flow in their initial years of operation due
to the large capital investment required for the construction or acquisition of
their cable networks and the administrative costs associated with commencing
operations. Consistent with this pattern, PCBV has incurred substantial
operating losses since inception. As of June 30, 2001, PCBV had negative working
capital. Additionally, PCBV is currently and is expected to continue to be
highly leveraged. The ability of PCBV to meet its debt service obligations will
depend on the future operating performance and financial results of PCBV as well
as its ability to obtain additional third party financing to support the planned
expansion, as well as obtaining additional financing from its ultimate parent,
UPC. PCBV's current cash on hand will be insufficient to satisfy all of its
commitments and to complete its current business plan.

    Management of PCBV believes that significant opportunities exist for pay
television providers capable of delivering high quality, Polish-language
programming on a multi-channel basis and other services on cable (i.e. data and
telephony). As such, PCBV has focused its financial and business efforts toward
its position in the cable market. PCBV's business strategy is designed to
increase its market share and subscriber base and to maximize revenue per
subscriber. To accomplish its objectives and to capitalize on its competitive
advantages, PCBV intends to (i) develop and control the content of programming
on its cable systems; (ii) increase its distribution capabilities through its
internal growth and through acquisitions; (iii) control its management of
subscribers by using advanced integrated management information systems; and
(iv) provide additional revenue generating services to its customers. If PCBV's
plans or assumptions change, if its assumptions prove inaccurate, if it
consummates unanticipated investments in or acquisitions of other companies, if
it experiences unexpected costs or competitive pressures, or if existing cash,
and projected cash flow from operations prove to be insufficient, PCBV may need
to obtain greater amounts of additional financing. While it is PCBV's intention
to enter only into new financing or refinancing that it considers advantageous,
there can be no assurance that such sources of financing would be available to
PCBV in the future, or, if available, that they could be obtained on terms
acceptable to PCBV.

    PCBV is dependent on its ultimate parent UPC, to provide financing to
achieve PCBV's business strategy. UPC has declared that it will continue to
financially support PCBV and its subsidiaries as a going concern, and
accordingly enable PCBV and its subsidiaries to meet their financial obligations
if and when needed, for the period at least through January 31, 2002.

    Several of the PCBV's Polish subsidiaries have statutory shareholders'
equity less than the legally prescribed limits because of accumulated losses. As
required by Polish law, the management of these

                                       20
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

companies will have to make decisions on how to increase the shareholders'
equity to be in compliance with the Polish Commercial Code. PCBV is currently
considering several alternatives, including the conversion of intercompany debt
into equity, in order to resolve these deficiencies.

4. IMPACT OF A NEW ACCOUNTING STANDARD ADOPTION

    In June 2001, the Financial Accounting Standards Board authorised the
issuance of Statement of Financial accounting Standards No. 141, BUSINESS
COMBINATIONS ("SFAS 141") and Statement of Financial Accounting Standards
No. 142, GOODWILL AND OTHER INTANGIBLE ASSETS ("SFAS 142"). SFAS 141 requires
the use of the purchase method of accounting for all business combinations
initiated after June 30, 2001. SFAS 141 requires identifiable intangible assets
acquired in a business combination to be recognised if they arise from
contractual or legal rights or are "separable", i.e., it is feasible that they
may be sold, transferred, licensed, rented, exchanged or pledged.

    Under SFAS 142, goodwill and intangible assets with indefinite lives will
not be amortized, but will be tested for impairment on an annual basis and
whenever indicators of impairment arise. The goodwill impairment test, which is
based on fair value, is to be performed on a reporting unit level. Goodwill will
no longer be allocated to other long-lived assets for impairment testing under
SFAS No. 121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR
LONG-LIVED ASSETS TO BE DISPOSED OF. Additionally, goodwill on equity method
investments will no longer be amortised; however, it will continue to be tested
for impairment in accordance with Accounting Principles Board Opinion No. 18,
THE EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS IN COMMON STOCK. Under SFAS 142
intangible assets with indefinite lives will be carried at the lower cost or
market value. All other recognised intangible assets will continue to be
amortised over their estimated useful lives.

    SFAS 142 is effective for fiscal years beginning after December 15, 2001,
although goodwill on business combinations consummated after July 1, 2001 will
not be amortised. On adoption the Company may need to record a cumulative effect
adjustment to reflect the impairment of previously recognised intangible assets.
In addition, goodwill on prior business combinations will cease to be amortised.
The Company has not determined the impact that these statements will have on
intangible assets or whether a cumulative effect adjustment will be required
upon adoption.

    Effective January 1, 2001, the Company adopted SFAS 133, which establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
All derivatives, whether designated in hedging relationships or not, are
required to be recorded on the balance sheet at fair value. The adoption of
SFAS 133 on January 1, 2001, resulted in no impact to income. The Company's debt
is all fixed rate and denominated in Euros or U.S. dollars. The Company does not
use derivative instruments to manage exposures to foreign currency or interest
rate risks.

5. RECLASSIFICATIONS

    Certain amounts have been reclassified in the corresponding period's
unaudited consolidated financial statement to conform to the unaudited
consolidated financial statement presentation for the three and six months ended
June 30, 2001.

6. LOSS PER SHARE

    Basic loss per ordinary share is based on the weighted average number of
ordinary shares outstanding of 200,000 for the three and six month periods ended
June 30, 2001 and 2000.

                                       21
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

7. COMMITMENTS AND CONTINGENCIES

BUILDING LEASE

    The Company leases several offices and warehouses within Poland under
cancelable operating lease terms. Minimum future lease commitments for the
aforementioned building leases relate to 2001 and 2002 only. The future minimum
lease commitments related to these building leases approximates $270,000 in 2001
and $30,000 in 2002 as of June 30, 2001.

CAR LEASES

    The Company has operating car leases with various leasing companies in
Poland. Minimum future lease commitments for the aforementioned car leases as of
June 30, 2001 are $212,000 in 2001, $370,000 in 2002 and $7,000 in 2003.

CONDUIT LEASES

    The Company also leases space within various telephone duct systems from
TPSA under cancelable operating leases. The TPSA leases expire at various times,
and a substantial portion of the Company's contracts with TPSA permit
termination by TPSA without penalty at any time either immediately upon the
occurrence of certain conditions or upon provision of three to six months notice
without cause. All of the agreements provide that TPSA is the manager of the
telephone duct system and will lease space within the ducts to the Company for
installation of cable and equipment for the cable television systems. Some
conduit agreements with TPSA provide that cables can be installed in the conduit
only for the use of the cable television. If the Company uses the cables for a
purpose other than cable television, such as data transmission, telephone, or
Internet access, such use could be considered a violation of the terms of
certain conduit agreements, unless this use is expressly authorized by TPSA.
There is no guarantee that TPSA would give its approval to permit other uses of
the conduits. The Company has introduced Internet services to certain of its
cable and D-DTH customers, and is in the process of renegotiating certain
conduit agreements with TPSA. The lease agreements provide for monthly lease
payments that are adjusted quarterly or annually, except for the Gdansk lease
agreement which provides for an annual adjustment after the sixth year and then
remains fixed through the tenth year of the lease. Minimum future lease
commitments for the aforementioned conduit leases relate to 2001 and 2002 only,
as all leases are cancelable in accordance with the aforementioned terms. The
future minimum lease commitments related to these conduit leases approximates
$574,000 in 2001 and $66,000 in 2002 as of June 30, 2001.

PROGRAMMING COMMITMENTS

    The Company has entered into long-term programming agreements and agreements
for the purchase of certain exhibition or broadcast rights with a number of
third party and affiliated content providers for its cable systems. The
agreements have terms which range from one to five years and require that the
license fees be paid either at a fixed amount payable at the time of execution
or based upon a guaranteed minimum number of subscribers connected to the system
each month. At June 30, 2001, the Company had an aggregate minimum commitment in
relation to these agreements of approximately $77,350,000 over the next six
years, approximating $12,590,000 in 2001, $26,053,000 in 2002, $19,787,000 in
2003, $11,807,000 in 2004 and $7,113,000 in 2005 and thereafter.

                                       22
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

REGULATORY APPROVALS

    The Company is in the process of obtaining permits from the Chairman of URT
for several of its cable television systems. If these permits are not obtained,
URT could impose penalties such as fines or in severe cases, revocation of all
permits held by an operator or the forfeiture of the operator's cable networks.
Management of the Company does not believe that these pending approvals result
in a significant risk to the Company. Additionally, in March 2001, PCI's
subsidiary notified the Chairman of the URT of its activities concerning the
provision of data transmission service and access to the Internet. The Chairman
had 21 days to respond to the Company's notification. As no response has been
received from the Chairman of URT, it is assumed that the Company is legally
entitled to provide the data transmission services and access to the Internet as
described in the notification.

LITIGATION AND CLAIMS

    From time to time, the Company is subject to various claims and suits
arising out of the ordinary course of business. While the ultimate result of all
such matters is not presently determinable, based upon current knowledge and
facts, management does not expect that their resolution will have a material
adverse effect on the Company's consolidated financial position or results of
operations.

PROCEEDING RELATING TO HBO POLSKA

    Two of the Company's cable television subsidiaries and four other unrelated
Polish cable operators and HBO Polska Sp. z o.o., have been made defendants in a
lawsuit instituted by Polska Korporacja Telewizyjna Sp. z o.o., a subsidiary of
Canal+. The primary defendant in the proceedings is HBO Polska Sp. z o.o. which
is accused of broadcasting the HBO television program in Poland without a
license from the Council as required by the Radio and Television Act of 1992, as
amended, and thereby undertaking an activity constituting an act of unfair
competition. The Company does not believe that the final disposition of the
lawsuit will have a material adverse effect on its consolidated financial
position or results of operations.

DIVIDEND RESTRICTIONS

    The Company's Polish subsidiaries are only able to distribute dividends to
the extent of accounting profit determined in accordance with Polish accounting
principles. As of June 30, 2001 the Company's Polish subsidiaries have no profit
available for distribution as dividends.

PCBV MINORITY STOCKHOLDER'S CLAIM

    On or about July 8, 1999, certain minority shareholders ("the minority
shareholders") of the Company, filed a lawsuit against PCI and certain other
defendants, in United States District Court, Southern District of Ohio, Eastern
Division, Civil Action No. C2-99-621.

    The relief sought by the minority shareholders includes: (1) unspecified
damages in excess of $75,000, (2) an order lifting the restrictions against
transfer of shares set forth in the Shareholders' Agreement among PCBV's
shareholders, as amended (the "Shareholders' Agreement") so that the minority
shareholders can liquidate their shares in the Company, (3) damages in the
amount of 1.7 percent of the payment made by UPC for the shares of the Company
as set forth in the Agreement and Plan of Merger between UPC Polska and UPC
dated June 2, 1999, and (4) attorneys' fees and costs incurred in prosecuting
the lawsuit.

                                       23
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                     POLAND CABLEVISION (NETHERLANDS) B.V.
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                             JUNE 30, 2001 AND 2000

    The amended complaint sets forth eight claims for relief based on
allegations that the defendants, including UPC Polska and PCI, committed the
following wrongful acts: (1) breached a covenant not to compete contained in the
Shareholders' Agreement relating to the shareholders of the Company,
(2) breached a covenant in the Shareholders' Agreement requiring that any
contract entered into by the Company with any other party affiliated with PCI be
commercially reasonable or be approved by certain of the minority shareholders,
(3) breached a provision in the Shareholders' Agreement that allegedly required
co-defendant Chase International Corp. ("CIC") to offer the minority
shareholders the right to participate in certain sales of the Company shares and
that required CIC to give written notice of any offer to purchase the minority
shareholders' shares in the Company, (4) breached their fiduciary duties to the
minority shareholders, (5) breached the agreement between the Company and CIC,
which allegedly limited the amount of management fees that could be paid
annually by the Company, (6) made false and misleading statements in various
documents filed with the Securities and Exchange Commission, (7) colluded to
defraud the minority shareholders by failing to make reference in certain Forms
8-K, 8-KA and 14D-1 to the minority shareholders or their alleged rights and
claims, (8) colluded to divert assets of PCBV to affiliates of PCI and the
Company, including the Company, that allegedly compete with PCI and the Company.

    On or about March 31, 2000 the parties to the lawsuit reached a settlement.
In accordance with the settlement, on June 2, 2000, Wizja TV B.V., an affiliate
of Company's Parent, purchased approximately 1.4% of the outstanding shares of
PCBV for a price of approximately $2.2 million. The case has been dismissed and
releases exchanged. The aforementioned settlement does not include the remaining
minority shareholders of PCBV.

    In addition to the Ohio lawsuit, other minority shareholders of the Company
(representing an additional approximately 6% of the shares of the Company,
hereinafter the "Reece Group") have asserted claims against the past and present
directors or officers of, or members of the Board of Managers of, PCI, the
Company and UPC Polska or one or more controlling shareholders of UPC Polska but
have not yet filed suit.

    The claims by the Reece Group consist of allegations previously made by
Reece Communications, Inc. ("RCI"). RCI's allegations were premised on, among
other things, alleged acts, errors, omissions, misstatements, misleading
statements or breaches of duty by the aforementioned officers, directors, or
controlling shareholders. UPC Polska has negotiated a settlement of those claims
and a simultaneous purchase of the Reece Group's PCBV shares, as well as the
purchase of all other shares of PCBV held by other minority shareholders and a
settlement of their claims. In exchange for the release of claims and the
transfer of all outstanding shares in PCBV held by minority shareholders, UPC
Polska and/or its affiliates will pay in the aggregate approximately
$3.6 million in cash at closing and issue promissory notes for $17 million,
which promissory notes accrue interest at 7% per annum and are payable in
increments over a period of 36 months in cash or UPC common stock at the payor's
election. Those transactions are anticipated to close in August 2001.

                                       24
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        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

    The following discussion and analysis provides information concerning the
results of operations and financial condition of the Company. Such discussion
and analysis should be read in conjunction with the accompanying unaudited
consolidated financial statements of the Company. Additionally, the following
discussion and analysis should be read in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations and the
audited consolidated financial statements included in Part II of the Company's
2000 Annual Report. The following discussion focuses on material trends, risks
and uncertainties affecting the results of operations and financial condition of
the Company.

    Certain statements in this Quarterly Report on Form 10-Q constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, that are not historical facts but rather reflect
the Company's current expectations concerning future results and events. The
words "believes," "expects," "intends," "plans," "anticipates," "likely," "will"
"may", "shall" and similar expressions identify such forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the Company (or entities in which the Company has interests), or
industry results, to differ materially from future results, performance or
achievements expressed or implied by such forward-looking statements.

    Readers are cautioned not to place undue reliance on these forward looking
statements which reflect management's view only as of the date of this Quarterly
Report on Form 10-Q. The Company undertakes no obligation to publicly release
the result of any revisions to these forward-looking statements which may be
made to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, conditions or circumstances.

    The risks, uncertainties and other factors that might cause such differences
include but are not limited to: (i) general economic conditions in Poland and in
the pay television business in Poland; (ii) changes in regulations the Company
operates under; (iii) uncertainties inherent in new business strategies,
including new product launches and development plans, which the Company has not
used before; (iv) rapid technology changes; (v) changes in, or failure or
inability to comply with, government regulations; (vi) the development and
provision of programming for new television and telecommunications technologies;
(vii) the continued strength of competitors in the multichannel video
programming distribution industry; (viii) future financial performance,
including availability, terms and deployment of capital; (ix) the ability of
vendors to deliver required equipment, software and services on schedule at the
budgeted cost; (x) the Company's ability to attract and hold qualified
personnel; (xi) changes in the nature of strategic relationships with joint
ventures; (xii) the overall market acceptance of those products and services,
including acceptance of the pricing of those products and services;
(xiii) acquisition opportunities and (xiv) the Company's new ownership
structure.

OVERVIEW

    The Company operates the largest cable television system in Poland with
approximately 1,851,800 homes passed and approximately 1,022,800 total
subscribers as at June 30, 2001.

    The Company's revenues have been and will continue to be derived primarily
from monthly subscription fees for cable television services. The Company
charges its subscribers fixed monthly fees for their choice of service packages
and for other services, such as premium channels, tuner rentals and additional
outlets, all of which are included in monthly subscription fees. The Company
currently offers broadcast, intermediate (in limited areas) and basic packages
of cable service. At June 30, 2001, approximately 65.2% of the Company's
subscribers received its basic package. Currently, almost all of the Company's
cable revenues are derived from monthly subscription fees.

                                       25
<Page>
    During 1999 and 2000, management completed several strategic actions in
support of its business and operating strategy. On June 5, 1998, the Company
began providing the Wizja TV programming package, with its initial 11 channels
of primarily Polish-language programming, to its basic subscribers. Since that
date, the basic Wizja TV package has been expanded to 29 channels. Management
believes that this selection of high quality primarily Polish-language
programming will provide it with a significant competitive advantage in
increasing its cable subscriber penetration rate. The Company has continued to
invest in upgrading its networks in order to provide additional revenue
generating services to its customers and continue to improve the security of
that network.

    During the fourth quarter of the year 2000, the Company began providing
Internet services to its cable television customers and has been investing in
upgrading its network to provide this service. Individual and home office
Internet subscribers are charged a monthly subscription fee of approximately $38
and $51, respectively.

    The Company has implemented a pricing strategy designed to increase revenue
per cable subscriber and its profit margin. The Company has increased the
monthly price for the "basic" package to reflect the increased channel
availability, and the premium channels, the HBO Poland service and Wizja Sport
have been offered to cable customers for an additional monthly charge. However,
as of March 24, 2001, Wizja Sport is no longer a premium channel, but has been
expanded to the basic package. The Company is in the process of encrypting the
HBO Poland service on cable for all premium channel subscribers. This encryption
and installation process is completed in all major systems and is expected to be
rolled out in the remaining Company's systems in 2001.

    The Company divides operating expenses into (i) direct operating expenses,
(ii) selling, general and administrative expenses and (iii) depreciation and
amortization expenses. Direct operating expenses consist of programming
expenses, maintenance and related expenses necessary to service, maintain and
operate the Company's cable systems, billing and collection expenses and
customer service expenses. Selling, general and administrative expenses consist
principally of administrative costs, including office related expenses,
professional fees and salaries, wages and benefits of non-technical employees,
advertising and marketing expenses, bank fees and bad debt expense. Depreciation
and amortization expenses consist of depreciation of property, plant and
equipment and amortization of intangible assets.

    The Company generated an operating loss of $25.2 million for the six months
ended June 30, 2001, as compared to $21.2 million for the six months ended
June 30, 2000, primarily due to programming expenses related to the purchase of
the Wizja TV programming package from an affiliated company and high
depreciation and amortization charges related to additional goodwill pushed down
as a result of UPC Polska's Merger.

    In addition to other operating statistics, the Company measures its
financial performance by EBITDA, an acronym for earnings before interest, taxes,
depreciation and amortization. The Company defines EBITDA to be net loss
adjusted for interest and investment income, depreciation and amortization,
interest expense, foreign currency gains and losses, income taxes, gains and
losses from the sale of assets other than in a normal course of business and
minority interest. The items excluded from EBITDA are significant components in
understanding and assessing the Company's financial performance. The Company
believes that EBITDA and related measures of cash flow from operating activities
serve as important financial indicators in measuring and comparing the operating
performance of media companies. EBITDA is not a U.S. GAAP measure of loss or
cash flow from operations and should not be considered as an alternative to cash
flows from operations as a measure of liquidity. The Company reported positive
EBITDA of $2.4 million and $0.4 million for the three months ended June 30, 2001
and 2000 respectively, and $2.1 million and $1.4 million for the six months
ended June 30, 2001 and 2000 respectively.

    CABLE TELEVISION REVENUE.  Revenue increased $3.0 million or 17.4% from
$17.2 million for the three months ended June 30, 2000 to $20.2 million for the
three months ended June 30, 2001 and increased

                                       26
<Page>
$4.9 million or 14.4% from $34.0 million for the six months ended June 30, 2000
to $38.9 million for the six months ended June 30, 2001. This increase was
primarily attributable to the appreciation of the Polish zloty against the US
dollar.

    Revenue from monthly subscription fees represented 97.9% and 98.1% of cable
television revenue for the six months ended June 30, 2001 and 2000,
respectively. During the three and six months ended June 30, 2001, the Company
generated approximately $1.1 million and $2.3 million, respectively, of
additional premium subscription revenue as a result of providing the HBO Poland
service pay movie channel and Wizja Sport channel to cable subscribers as
compared to $1.2 million and $2.1 million, respectively, for the three and six
months ended June 30, 2000 (although the Company expanded Wizja Sport into its
basic package as of March 24, 2001).

    DIRECT OPERATING EXPENSES.  Direct operating expenses increased
$4.4 million, or 53.0%, from $8.3 million for the three months ended June 30,
2000 to $12.7 million for the three months ended June 30, 2001, and increased
$5.2 million or 26.1% from $19.9 million for the six months ended June 30, 2000
to $25.1 million for the six months ended June 30, 2001, principally as a result
of an increase in programming costs. Direct operating expenses increased from
48.3% of revenues for the three months ended June 30, 2000 to 62.9% of revenues
for the three months ended June 30, 2001 and increased from 58.5% of revenues
for the six months ended June 30, 2000 to 64.5% of revenues for the six months
ended June 30, 2001.

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.  Selling, general and
administrative expenses decreased $3.4 million or 40.0% from $8.5 million for
the three months ended June 30, 2000 to $5.1 million for the three months ended
June 30, 2001 and decreased $1.0 million or 7.9% from $12.7 million for the six
months ended June 30, 2000 to $11.7 million for the six months ended June 30,
2001. This decrease was attributable to the fact that the Company is no longer
providing programming guides to customers as it did during fiscal year 2000.

    As a percentage of revenue, selling, general and administrative expenses
decreased from 49.4% for the three months ended June 30, 2000 to approximately
25.2% for the three months ended June 30, 2001 and decreased from 37.4% of
revenue for the six months ended June 30, 2000 to 30.1% for the six months ended
June 30, 2001.

    DEPRECIATION AND AMORTIZATION.  Depreciation and amortization expense
increased $3.2 million, or 28.8%, from $11.1 million for the three months ended
June 30, 2000 to $14.3 million for the three months ended June 30, 2001 and
increased $4.8 million or 21.2% from $22.6 million for the six months ended
June 30, 2000 to $27.4 million for the six months ended June 30, 2001,
principally as a result of the continued build-out of the Company's cable
networks. Depreciation and amortization expense as a percentage of revenues
increased from 64.5% for the three months ended June 30, 2000 to 70.8% for the
three months ended June 30, 2001 and increased from 66.5% for the six months
ended June 30, 2000 to 70.4% for the six months ended June 30, 2001.

    INTEREST EXPENSE.  Interest expense decreased $0.1 million, or 14.3%, from
$0.7 million for the three months ended June 30, 2000 to $0.6 million for the
three months ended June 30, 2001 and decreased $0.1 million, or 7.7%, from
$1.3 million for the six months ended June 30, 2000 to $1.2 million for the six
months ended June 30, 2001. The decrease is a result of repayment of the loan by
a subsidiary of PCI in the first six months of 2001.

    INTEREST INCOME.  Interest income increased $67,000, or 176.3%, from $38,000
for the three months ended June 30, 2000 to $105,000 for the three months ended
June 30, 2001 and increased $57,000, or 54.3%, from $105,000 for the six months
ended June 30, 2000 to $162,000 for the six months ended June 30, 2001,
primarily due to the increase in the level of cash used to fund the Company's
operations.

                                       27
<Page>
    FOREIGN EXCHANGE GAIN/LOSS, NET.  For the three months ended June 30, 2001,
foreign exchange gain amounted to $2.2 million as compared to a foreign exchange
loss of $4.7 million for the three months ended June 30, 2000 and for the six
months ended June 30, 2001, foreign exchange gain amounted to $3.2 million as
compared to a foreign exchange loss of $5.1 million for the six months ended
June 30, 2000. This change from loss in 2000 to gain in 2001 is primarily due to
the fluctuation of the Polish currency during the three and six months ended
June 30, 2001.

    INCOME TAX EXPENSE.  The Company recorded $47,000 of income tax expense for
the three months ended June 30, 2001, as compared to $22,000 for the three
months ended June 30, 2000 and $83,000 of income tax expense for the six months
ended June 30, 2001, as compared to $40,000 for the six months ended June 30,
2000.

    NET LOSS.  For the three months ended June 30, 2001 and the three months
ended June 30, 2000, the Company had net losses of $10.2 million and
$16.1 million, respectively, and for the six months ended June 30, 2001 and the
six months ended June 30, 2000, the Company had net losses of $23.4 million and
$27.5 million, respectively. These losses were the result of the factors
discussed above.

    NET LOSS APPLICABLE TO COMMON STOCKHOLDERS.  Net loss applicable to common
stockholders decreased from $20.6 million for the three months ended June 30,
2000 to $15.3 million for the three months ended June 30, 2001 and from
$36.5 million for the six months ended June 30, 2000 to $33.5 million for the
six months ended June 30, 2001 due to the accretion of redeemable preferred
stock and the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

    The Company has met its cash requirements in recent years primarily with
(i) capital contributions and loans from UPC Polska, (ii) borrowings under
available credit facilities, (iii) cash flows from operations, and (iv) the sale
of $130 million aggregate principal amount of the Company's 9 7/8% Senior Notes
due 2003 ("PCI Notes"). The Company had negative cash flows from operating
activities of $3.6 million and $4.1 million for the six months ended June 30,
2001 and 2000, respectively, due to decreases in accounts payable.

    Since the acquisition of all of the outstanding stock of the Company's
parent, UPC Polska, by UPC on August 6, 1999, the Company has met its capital
requirements primarily through the sale of its Mandatorily Redeemable Debenture
Stock for $140 million to UPC Polska, and increases in paid in capital from UPC
Polska.

    Cash used for the purchase and expansion of the Company's cable television
networks was $9.0 million and $5.8 million for the six months ended June 30,
2001 and 2000, respectively.

    On June 30, 2001, the Company was committed to pay at least $82.5 million in
guaranteed payments (including but not limited to payment for programming and
rights) over the next six years of which at least approximately $14.5 million
was committed through the end of 2001.

    Pursuant to the indenture governing the PCI Notes (the "PCI Indenture"), the
Company is subject to certain restrictions and covenants, including, without
limitation, covenants with respect to the following matters: (i) limitation on
additional indebtedness; (ii) limitation on restricted payments;
(iii) limitation on issuances and sales of capital stock of restricted
subsidiaries; (iv) limitation on transactions with affiliates; (v) limitation on
liens; (vi) limitation on guarantees of indebtedness by subsidiaries;
(vii) purchase of PCI Notes upon a change of control; (viii) limitation on sale
of assets; (ix) limitation on dividends and other payment restrictions affecting
subsidiaries; (x) limitation on investments in unrestricted subsidiaries;
(xi) limitation on lines of business; (xii) consolidations, mergers

                                       28
<Page>
and sale of assets; and (xiii) provision of financial statements and reports.
The Company is in compliance with these covenants.

    The Company has pledged to State Street Bank and Trust Company, the trustee
for the PCI Notes (for the benefit of the holders of the PCI Notes),
intercompany notes issued by PCBV, of a minimum aggregate principal amount
(together with cash and cash equivalents of the Company), equal to at least 110%
of the outstanding principal amount of the PCI Notes, and that, in the
aggregate, provide cash collateral or bear interest and provide for principal
repayments, as the case may be, in amounts sufficient to pay interest on the PCI
Notes. Notes payable from PCBV to the Company were $226,429,000 at June 30, 2001
and $210,530,000, $176,815,000 and $160,830,000 at December 31, 2000, 1999 and
1998, respectively.

    The indenture covering the PCI Notes provides that, following a Change of
Control (as defined therein), each noteholder has the right, at such holder's
option, to require the respective issuer to offer to repurchase all or a portion
of such holder's PCI Notes at the repurchase prices, described below. The
Company believes that the August 6, 1999 acquisition by UPC of Entertainment
constituted a Change of Control. Accordingly, PCI made an offer to repurchase
(the "Offer") from the holders of the PCI Notes. The Offer expired at 12:01 PM,
New York City time, on November 2, 1999.

    In accordance with the terms of the indenture governing the PCI Notes, the
Company was required to offer to repurchase the PCI Notes at the purchase price
of 101% of principal. As of August 5, 1999, the Company had $129,668,000
aggregate principal amount at maturity of PCI Notes outstanding. Pursuant to the
Offer, the Company purchased $113,237,000 aggregate principal amount of PCI
Notes for an aggregate price of $114,369,370.

    To fund the repurchase of the PCI Notes and operations, as of November 3,
1999, PCI sold UPC Polska 14,000 shares of its Mandatorily Redeemable Debenture
Stock for a total of $140 million on an as-issued basis. The Debenture Stock
will be redeemed on December 31, 2003 for a price of $10,000 per share plus
interest at 10% per annum from November 3, 1999 to the date of redemption,
compounded annually. UPC funded UPC Polska's purchase of the Mandatorily
Redeemable Debenture Stock. The Company has pledged to UPC Polska intercompany
notes issued by PCBV in an aggregated principal amount of $176,815,000. The PCI
Noteholders will be equally and ratably secured by the pledge.

    The Company's cash on hand will be insufficient to satisfy its commitments
and to complete its current business plan. UPC and UPC Polska are evaluating
various alternatives to meet the Company's capital needs. Future sources of
financing for the Company could include public or private equity, debt or bank
financing or any combination thereof, subject to the restrictions contained in
the indentures governing the outstanding senior indebtedness of the Company, UPC
Polska, UPC, and United GlobalCom, Inc., UPC's parent. Moreover, if the
Company's plans or assumptions change, if its assumptions prove inaccurate, if
it consummates unanticipated investments in or acquisitions of other companies,
if it experiences unexpected costs or competitive pressures, or if existing
cash, and projected cash flow from operations prove to be insufficient, the
Company may need to obtain greater amounts of additional financing. While it is
the Company's intention to enter only into new financing or refinancing that it
considers advantageous, there can be no assurance that such sources of financing
would be available to the Company in the future, or, if available, that they
could be obtained on terms acceptable to the Company. The Company is also
dependent on its parent, UPC Polska, and UPC Polska's parent, UPC, to provide
financing to achieve the Company's business strategy. UPC has declared that it
will continue to financially support PCI and its subsidiaries as a going concern
and accordingly enable the Company and its subsidiaries to meet their financial
obligations if and when needed, for the period at least through January 31,
2002.

                                       29
<Page>
NEW ACCOUNTING PRINCIPLES

    In June 2001, the Financial Accounting Standards Board authorised the
issuance of Statement of Financial accounting Standards No. 141, BUSINESS
COMBINATIONS ("SFAS 141") and Statement of Financial Accounting Standards
No. 142, GOODWILL AND OTHER INTANGIBLE ASSETS ("SFAS 142"). SFAS 141 requires
the use of the purchase method of accounting for all business combinations
initiated after June 30, 2001. SFAS 141 requires identifiable intangible assets
acquired in a business combination to be recognised if they arise from
contractual or legal rights or are "separable", i.e., it is feasible that they
may be sold, transferred, licensed, rented, exchanged or pledged.

    Under SFAS 142, goodwill and intangible assets with indefinite lives will
not be amortized, but will be tested for impairment on an annual basis and
whenever indicators of impairment arise. The goodwill impairment test, which is
based on fair value, is to be performed on a reporting unit level. Goodwill will
no longer be allocated to other long-lived assets for impairment testing under
SFAS No. 121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR
LONG-LIVED ASSETS TO BE DISPOSED OF. Additionally, goodwill on equity method
investments will no longer be amortised; however, it will continue to be tested
for impairment in accordance with Accounting Principles Board Opinion No. 18,
THE EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS IN COMMON STOCK. Under SFAS 142
intangible assets with indefinite lives will be carried at the lower cost or
market value. All other recognised intangible assets will continue to be
amortised over their estimated useful lives.

    SFAS 142 is effective for fiscal years beginning after December 15, 2001,
although goodwill on business combinations consummated after July 1, 2001 will
not be amortised. On adoption the Company may need to record a cumulative effect
adjustment to reflect the impairment of previously recognised intangible assets.
In addition, goodwill on prior business combinations will cease to be amortised.
The Company has not determined the impact that these statements will have on
intangible assets or whether a cumulative effect adjustment will be required
upon adoption.

    In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS
AND HEDGING ACTIVITIES, SFAS 133 establishes accounting and reporting standards
requiring that every derivative instrument (including certain derivative
instruments embedded in other contracts) be recorded on the balance sheet as
either an asset or liability measured at its fair value. The statement requires
that changes in the derivative's fair value be recognized currently in earnings
unless specific accounting criteria are met. If a derivative instrument
qualifies for hedge accounting, the gains or losses from the derivative may
offset results from the hedged item in the statement of operations or other
comprehensive income, depending on the type of hedge. To adopt hedge accounting,
a company must formally document, designate and assess the effectiveness of
transactions that receive hedge accounting.

    In June 2000, the Financial Accounting Standards Board issued SFAS 138,
ACCOUNTING FOR CERTAIN DERIVATIVE INSTRUMENTS AND CERTAIN HEDGING ACTIVITIES.
This statement addresses a limited number of issues causing implementation
difficulties for numerous entities that apply SFAS 133 and this statement amends
the accounting and reporting standards of SFAS 133 for certain derivative
instruments and certain hedging accounting.

    SFAS 137 delayed the effective date of SFAS 133 to fiscal years beginning
after June 15, 2000. A company may implement the statements as of the beginning
of any fiscal quarter after issuance; however, SFAS 133 cannot be applied
retroactively.

    Effective January 1, 2001, the Company adopted SFAS 133, which establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
All derivatives, whether designated in hedging relationships or not, are
required to be recorded on the balance sheet at fair value. The adoption of
SFAS 133 on January 1, 2001, resulted in no impact to income. The Company's debt
is all fixed rate and

                                       30
<Page>
denominated in Euros or U.S. dollars. The Company does not use derivative
instruments to manage exposures to foreign currency or interest rate risks.

    In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101, REVENUE RECOGNITION IN FINANCIAL STATEMENTS
(SAB 101). SAB 101 outlines the SEC's views on applying generally accepted
accounting principles to revenue recognition in financial statements.
Specifically, the bulletin provides both general and specific guidance as to the
periods in which companies should recognize revenues. In addition, SAB 101 also
highlights factors to be considered when determining whether to recognize
revenues on a gross or net basis. SAB 101, as amended by SAB 101/A and SAB
101/B, was effective beginning no later than their fourth fiscal quarter of the
fiscal year beginning after December 15, 1999; as the Company is a calendar
year-end company, this was the quarter ended December 31, 2000.

    SAB 101 permitted the effects of the changes to be recorded as a cumulative
effect of a change in accounting principle during the quarter ended
December 31, 2000. As the Company's accounting policies for its cable television
services are still accounted for under SFAS 51, FINANCIAL REPORTING BY CABLE
TELEVISION COMPANIES, there was no immediate effect on the Company. However,
with the introduction of Internet services in the fourth quarter of 2000,
revenue recognition for Internet related services has been and will be reported
in accordance with SAB 101.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    The principal market risk (i.e., the risk of loss arising from adverse
changes in market rates and prices) to which the Company is exposed is foreign
exchange rate risk from fluctuations in the Polish zloty currency exchange rate.
The Company's long term debt is primarily subject to a fixed rate, and therefore
variations in the interest rate do not have a material impact on net interest
expense.

FOREIGN EXCHANGE AND OTHER INTERNATIONAL MARKET RISKS

    Operating in international markets involves exposure to movements in
currency exchange rates. Currency exchange rate movements typically affect
economic growth, inflation, interest rates, governmental actions and other
factors. These changes, if material, can cause the Company to adjust its
financing and operating strategies. The discussion of changes in currency
exchange rates below does not incorporate these other important economic
factors.

    International operations constitute 100% of the Company's consolidated
operating loss for the six months ended June 30, 2001. Some of the Company's
operating and financing expenses and capital expenditures are expected to
continue to be denominated in or indexed in U.S. dollars. By contrast,
substantially all of the Company's revenues are denominated in zloty. Therefore,
any devaluation of the zloty against the U.S. dollar that the Company is unable
to offset through price adjustments will require it to use a larger portion of
its revenue to service its U.S. dollar denominated obligations and contractual
commitments.

    The Company estimates that 10% change in foreign exchange rates would impact
reported operating loss by approximately $0.8 million. In other terms, a 10%
depreciation of the Polish zloty against the U.S. dollar, would result in a
$0.8 million decrease in the reported operating loss. This was estimated using
10% of the Company's operating loss after adjusting for unusual impairment and
other items including U.S. dollar denominated or indexed expenses. The Company
believes that this quantitative measure has inherent limitations because, as
discussed in the first paragraph of this section, it does not take into account
any governmental actions or changes in either customer purchasing patterns or
the Company's financing or operating strategies.

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<Page>
    The Company does not generally hedge translation risk. While the Company may
consider entering into transactions to hedge the risk of exchange rate
fluctuations, there is no assurance that it will be able to obtain hedging
arrangements on commercially satisfactory terms. Therefore, shifts in currency
exchange rates may have an adverse effect on the Company's financial results and
on its ability to meet its U.S. dollar denominated debt obligations and
contractual commitments.

    The zloty fluctuated against the U.S. dollar during 2000 and the first six
months of 2001 but the actual exchange rates as of January 1, 2000,
December 31, 2000 and June 30, 2001 remained substantially unchanged. Inflation
and currency exchange fluctuations may have a material adverse effect on the
business, financial condition and results of operations of the Company.

                                       32
<Page>
PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

    The Company is involved in litigation from time to time in the ordinary
cause of business. In management's opinion, the litigation in which the Company
is currently involved, and which has not been settled, individually and in the
aggregate, is not material to the Company's financial condition or results of
operations. See also Note 7 to the Company's unaudited consolidated financial
statements for a description of the settlement of the PCBV minority
stockholders' claim.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

    Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None.

ITEM 5. OTHER INFORMATION:

    Not applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

<Table>
<S>      <C>
3(i)(a)  Restated Certificate of Incorporation of Poland
         Communications, Inc., as amended through August 1998, and
         incorporated by reference as Exhibit 3(i)(a) to Form 10-K,
         filed on May 31, 2000.

3(i)(b)  Certificate of Amendment of the Certificate of Incorporation
         of Poland Communications, Inc., dated March 20, 2000, and
         incorporated by reference as Exhibit 3(i)(b) to Form 10-K,
         filed on May 31, 2000.

3(ii)    Amended and Restated By-Laws of Poland
         Communications, Inc., as amended through March 1998, and
         incorporated by reference as Exhibit 3.2 to Form 10-K, filed
         on May 30, 1999.

4.1      Indenture dated as of October 31, 1996, between Poland
         Communications, Inc. and State Street Bank and Trust
         Company, as trustee, incorporated by reference as
         Exhibit 4.11 to Form S-4, filed on January 24, 1997.

11.1     Statement re computation of per share earnings (contained in
         Note 6 of Notes to Unaudited Consolidated Financial
         Statements for Poland Communications, Inc. in this Quarterly
         Report on Form 10-Q).

11.2     Statement re computation of per share earnings (contained in
         Note 6 of Notes to Unaudited Consolidated Financial
         Statements for Poland Cablevision (Netherlands) B.V. in this
         Quarterly Report on Form 10-Q).
</Table>

(b) Reports on Form 8-K

    The Company did not file any reports on Form 8-K during the second quarter
of 2001.

                                       33
<Page>
                                   SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

<Table>
<S>                                                    <C>  <C>
                                                       POLAND COMMUNICATIONS, INC.

                                                       By:  /s/ SIMON BOYD
                                                            -----------------------------------------
                                                            Simon Boyd
                                                            Chief Financial Officer
                                                            (Principal Financial and
                                                            Principal Accounting Officer)

Date: August 14, 2001
</Table>

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