<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 MARCH 31, 2002.

                                       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 March 31, 2002, was:

                              Common Stock  18,948

--------------------------------------------------------------------------------
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<Page>
                          POLAND COMMUNICATIONS, INC.
                                FORM 10-Q INDEX
                   FOR QUARTERLY PERIOD ENDED MARCH 31, 2002

<Table>
<Caption>
                                                                             PAGE NO.
PART I FINANCIAL INFORMATION                                                 --------
<S>   <C>      <C>                                                           <C>
      Item 1.  Financial Statements
               Poland Communications, Inc.
               Consolidated Balance Sheets.................................     3-4
               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.................................      20
               Consolidated Statements of Operations.......................      21
               Consolidated Statements of Comprehensive Loss...............      22
               Consolidated Statements of Cash Flows.......................      23
               Notes to Consolidated Financial Statements..................      24

      Item 2.  Management's Discussion and Analysis of Financial Condition
               and
               Results of Operations.......................................   36-44

      Item 3.  Quantitative and Qualitative Disclosures About Market
               Risk........................................................      44

PART II OTHER INFORMATION

      Item 1.  Legal Proceedings...........................................      46

      Item 2.  Changes in Securities and Use of Proceeds...................      46

      Item 3.  Defaults Upon Senior Securities.............................      46

      Item 4.  Submission of Matters to a Vote of Security Holders.........      46

      Item 5.  Other Information...........................................      46

      Item 6.  Exhibits and Reports on Form 8-K............................      46
</Table>

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

<Table>
<Caption>
                                                               MARCH 31,    DECEMBER 31,
                                                                 2002           2001
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
                                         ASSETS
Current assets:
  Cash and cash equivalents.................................    $  1,597      $  3,210
  Trade accounts receivable, net of allowance for doubtful
    accounts of $3,115 in 2002 and $2,765 in 2001...........       5,483         6,478
  Prepayments...............................................         894           733
  Due from affiliates.......................................          10            48
  Other current assets......................................          14           176
                                                                --------      --------
    Total current assets....................................       7,998        10,645
                                                                --------      --------

Property, plant and equipment:
  Cable system assets.......................................     164,304       166,955
  Construction in progress..................................         608           783
  Vehicles..................................................       1,606         1,612
  Office, furniture and equipment...........................      11,259        11,431
  Other.....................................................       9,189        12,146
                                                                --------      --------
                                                                 186,966       192,927

  Less accumulated depreciation.............................     (58,831)      (54,059)
                                                                --------      --------
    Net property, plant and equipment.......................     128,135       138,868

Inventories for construction................................       3,775         4,028
Intangible assets, net (note 2).............................     356,472       370,062
                                                                --------      --------

    Total assets............................................    $496,380      $523,603
                                                                ========      ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       3
<Page>
                          POLAND COMMUNICATIONS, INC.
                    CONSOLIDATED BALANCE SHEETS (CONTINUED)

<Table>
<Caption>
                                                               MARCH 31,    DECEMBER 31,
                                                                 2002           2001
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
                          LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
  Accounts payable and accrued expenses.....................   $  18,201      $  19,391
  Accrued interest..........................................         595            240
  Deferred revenue..........................................       2,563          2,646
  Current portion of notes payable..........................         302            407
  Due to UPC Polska and its affiliates (note 3).............      54,399         60,343
                                                               ---------      ---------
      Total current liabilities.............................      76,060         83,027
                                                               ---------      ---------

Long-term liabilities:
  Notes payable and accrued interest to UPC Polska..........       9,934          9,706
  Notes payable (note 3)....................................      14,509         14,509
                                                               ---------      ---------
      Total liabilities.....................................     100,503        107,242
                                                               ---------      ---------

Redeemable preferred stock (liquidation value $60,000,000;
  6,000 shares authorized, issued and outstanding)..........      44,772         43,521
Mandatorily Redeemable Debenture Stock, 30,000 shares
  authorized; 14,000 shares issued and outstanding
  (including accrued dividend)..............................     176,529        172,223

Commitments and contingencies (note 9)

Stockholder's equity:
  Common stock, $.01 par value; 27,000 shares authorized,
    18,948 shares issued and outstanding....................           1              1
  Paid-in capital...........................................     347,907        353,464
  Accumulated other comprehensive loss......................     (35,319)       (21,232)
  Accumulated deficit.......................................    (138,013)      (131,616)
                                                               ---------      ---------
      Total stockholder's equity............................     174,576        200,617
                                                               ---------      ---------
      Total liabilities and stockholder's equity............   $ 496,380      $ 523,603
                                                               =========      =========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

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

<Table>
<Caption>
                                                            THREE MONTHS ENDED   THREE MONTHS ENDED
                                                              MARCH 31, 2002       MARCH 31, 2001
                                                            ------------------   ------------------
                                                             (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                         <C>                  <C>
Revenues (note 6).........................................       $ 19,713             $ 18,728

Operating expenses:
  Direct operating expenses charged by third parties (note
    6)....................................................          6,953                5,884
  Direct operating expenses charged by affiliates (note
    6)....................................................          3,321                6,476
  Selling, general and administrative expenses............          4,763                6,616
  Depreciation and amortization...........................          7,131               13,112
                                                                 --------             --------
Total operating expenses..................................         22,168               32,088
                                                                 --------             --------

  Operating loss..........................................         (2,455)             (13,360)

Interest and investment income............................             15                   57
Interest expense (note 6).................................           (616)                (607)
Non operating expense.....................................             --                 (205)
Foreign exchange gain/(loss), net.........................         (3,275)               1,007
                                                                 --------             --------

  Loss before income taxes................................         (6,331)             (13,108)

Income tax expense........................................            (66)                 (36)
                                                                 --------             --------

  Net loss................................................       $ (6,397)            $(13,144)
                                                                 ========             ========

  Accretion of redeemable preferred stock.................         (1,251)              (1,117)
  Accrued dividend on Mandatorily Redeemable Debenture
    Stock.................................................         (4,306)              (3,914)
                                                                 --------             --------

Net loss applicable to holders of common stock............       $(11,954)            $(18,175)
                                                                 ========             ========

Basic net loss per common share...........................       $(630.88)            $(959.20)
                                                                 ========             ========
</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   THREE MONTHS ENDED
                                                              MARCH 31, 2002       MARCH 31, 2001
                                                            ------------------   ------------------
                                                                        (IN THOUSANDS)
<S>                                                         <C>                  <C>
Net loss..................................................       $ (6,397)            $(13,144)
Other comprehensive (loss) / income:
Translation adjustment....................................        (14,087)               4,529
                                                                 --------             --------
Comprehensive loss........................................       $(20,484)            $ (8,615)
                                                                 ========             ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

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

<Table>
<Caption>
                                                            THREE MONTHS ENDED   THREE MONTHS ENDED
                                                              MARCH 31, 2002       MARCH 31, 2001
                                                            ------------------   ------------------
                                                                        (IN THOUSANDS)
<S>                                                         <C>                  <C>
Cash flows from operating activities:
  Net loss................................................       $(6,397)             $(13,144)
  Adjustments to reconcile net loss to net cash provided
    by operating activities:
      Depreciation and amortization.......................         7,131                13,112
      Unrealised foreign exchange (gains)/losses..........         3,616                  (638)
      Other...............................................            53                   327
      Changes in operating assets and liabilities:
        Accounts receivable...............................           802                 1,750
        Other current assets..............................            86                  (804)
        Accounts payable..................................          (255)               (1,947)
        Accrued interest..................................           360                   355
        Amounts due to affiliates and parent..............        (3,292)                7,015
        Amounts due from UPC affiliates...................            38                  (513)
        Deferred revenue..................................            10                    74
                                                                 -------              --------
          Net cash provided by operating activities.......         2,152                 5,587
Cash flows from investing activities:
  Construction and purchase of property, plant and
    equipment.............................................        (1,126)               (8,989)
                                                                 -------              --------
          Net cash used in investing activities...........        (1,126)               (8,989)
Cash flows from financing activities:
  Proceeds from parent....................................            --                 4,352
  Repayments to parent....................................        (2,424)                   --
  Repayment of notes payable..............................          (104)                 (109)
                                                                 -------              --------
          Net cash (used in)/provided by financing
            activities....................................        (2,528)                4,243

          Net increase/ (decrease) in cash and cash
            equivalents...................................        (1,502)                  841
Effect of exchange rates on cash and cash equivalents.....          (111)                   56
Cash and cash equivalents at beginning of period..........         3,210                 1,442
                                                                 -------              --------
Cash and cash equivalents at end of period................       $ 1,597              $  2,339
                                                                 =======              ========
Supplemental cash flow information:
  Cash paid for interest..................................       $    66              $     99
                                                                 =======              ========
  Cash paid for income taxes..............................       $    28              $     36
                                                                 =======              ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       7
<Page>
                          POLAND COMMUNICATIONS, INC.

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                            MARCH 31, 2002 AND 2001

1.  BASIS OF PRESENTATION

    The information furnished by Poland Communications, Inc. and its
subsidiaries ("PCI" or the "Company") has been prepared in accordance with
accounting principles generally accepted 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 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 March 31, 2002. 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 Annual Report on Form 10-K for the fiscal year ended December 31,
2001 filed with the SEC (the "2001 Annual Report"). The interim financial
results are not necessarily indicative of the results of the full year.

2.  GOODWILL AND OTHER INTANGIBLE ASSETS

    On June 2, 1999, UPC Polska, Inc., ("UPC Polska"), 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.

    As a result of the Acquisition, UPC pushed down the goodwill of
approximately $979.3 million to UPC Polska establishing a new basis of
accounting as of the acquisition date. The goodwill was allocated between the
UPC Polska's business segments based on the investment model used for
acquisition. The Company was allocated approximately $417.1 million of goodwill.
During the year ended December 31, 2001 this figure increased by $23.4 million
to $440.5 million due to the purchase by an affiliate of the Company's parent of
outstanding stock from Poland Cablevision (Netherlands) B.V. ("PCBV") minority
shareholders in connection with settlement of the PCBV minority shareholders
lawsuit.

    As of January 1, 2002, the Company adopted SFAS No. 142, which requires
goodwill and intangible assets with indefinite lives to no longer be amortized.
Accordingly, the consolidated statement of operations for the three months ended
March 31, 2002 does not include any such amortization expense. For the three
months ended March 31, 2001, the consolidated statement of operations included
amortization expense of approximately $6.6 million.

                                       8
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

3.  GOING CONCERN AND LIQUIDITY RISKS

    These unaudited 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 flows 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.

    The Company relies solely on UPC Polska for its sources of liquidity and
financing, which relies solely on UPC for its sources of liquidity and
financing. The financial and liquidity problems experienced by UPC and UPC
Polska, as described further below, have a significant impact on the Company
ability to continue as a going concern. During 2001, UPC Polska reviewed its
long-term plan for its operations and revised its business strategy for cable
television from aggressive growth to a focus on achievement of positive cash
flow. UPC Polska and the Company expect to have positive EBITDA and positive
cash flows in 2002.

    As of March 31, 2002, the Company had negative working capital of
$68.1 million and has experienced operating losses of $2.5 million and
$13.4 million during the three months ended March 31, 2002 and 2001,
respectively. It also has significant commitments under non-cancelable operating
leases and for programming rights, as well as repayment obligations related to
the PCI Notes. During 2002, the Company will be required to repay the Bank
Rozwoju facility of $0.3 million (approximately $30,000 on a monthly basis). In
2003, the Company will also be required to repay approximately $14.5 million in
principal amount under the PCI Notes. It also has $54.4 million in trade
payables due to UPC Polska and affiliates, which is classified as current
liability as of March 31, 2002.

    As of March 31, 2002, UPC Polska has a negative working capital of
$394.3 million, stockholder's deficit of $302.3 million and has experienced
operating losses of $4.4 million and $51.8 million during the three months ended
March 31, 2002 and 2001, respectively. Additionally, UPC Polska has significant
funding obligations during 2002 and 2003, in which it does not have the current
cash available or available borrowing capacity to fund these obligations.

    The Company, since its August 6, 1999 Merger, has relied completely on
funding from its shareholder UPC Polska. As a result of UPC's decision to not
make interest payments on its senior notes and senior discount notes on
February 1, 2002, and May 1, 2002, and its failure to make the interest payment
upon the expiration of the applicable 30-day grace period, these actions
constituted Events of Default pursuant to UPC's senior notes and senior discount
notes. The occurrence of these Events of Default gave the related trustees under
the indebtedness, or requisite number of holders of such notes, the right to
accelerate the maturity of all of UPC's senior notes and senior discount notes
and then to foreclose on the collateral securing these notes. As of the date of
the filing of this Quarterly Report on Form 10-Q, neither any of the trustees
for the respective notes nor the requisite number of holders of those notes have
accelerated the payment of principal and interest under these notes. UPC has
entered into a non-binding Memorandum of Understanding with
UnitedGlobalCom, Inc., UPC's parent, to enter into negotiations with the holders
of UPC's senior notes and senior discount notes to attempt to reach agreement on
a means to restructure UPC's indebtedness at the holding company level. In
addition, UPC has received waivers from the lenders under its and its
subsidiaries' bank facilities for the cross Events of Default under such
facilities that existed or may exist as a result of UPC's failure to make the
interest payments due on February 1,

                                       9
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

2002 and May 1, 2002 on UPC's outstanding senior notes within the applicable
grace periods. Although the Company had anticipated being able to rely on UPC
Polska, which is relaying on UPC, to meet its payment obligations, given UPC's
and UPC Polska's liquidity concerns, the Company is not certain that it will
receive the necessary financing from UPC Polska. If the Company is unable to
rely on UPC Polska for financial support, it will have to meet its payment
obligations with cash on hand or with funds obtained from public or private 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 UnitedGlobalCom, Inc., UPC's parent.

    As of March 31, 2002, a significant amount of UPC Polska's unrestricted cash
has limitations imposed on it by its indentures and notes payable to UPC. As a
result of these limitations and the potential inability of UPC to provide
necessary funding, if required by UPC Polska, UPC Polska has limited sources of
funding available to it outside of its operating cash flows. Additionally, as a
result of material adverse change provisions contained in the debt agreements
between UPC and UPC Polska, the notes payable to UPC of $451.7 million have been
classified as current in the UPC Polska financial statements. In the event UPC
accelerated payment under its notes, UPC Polska would have limited funds or
available borrowings to repay these notes. Additionally, the UPC Polska debt
agreements have various Events of Default, including the acceleration of the
payment of other debt of UPC Polska in excess of $15 million. In the event UPC
Polska's debt were to be accelerated or it were to have an other Event of
Default which were not cured in a timely manner pursuant to the respective
agreements, UPC Polska's and PCI's Notes of $416.9 million would become due. UPC
Polska has evaluated the likelihood of it experiencing an Event of Default as of
the date of filing this Quarterly Report on Form 10-Q and has determined, based
on its assessment, that it is not "virtually certain" that an Event of Default
will occur. As a result, on March 31, 2002 UPC Polska financial statements, the
amounts related to the UPC Polska Notes have been reflected as a long-term
liability. UPC Polska's available cash on hand will be insufficient to satisfy
all of its obligations, and UPC Polska cannot be certain that it will be able to
obtain the necessary financing at all, or on terms that will be favorable to UPC
Polska.

    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.

    Management of the Company believes that significant opportunities exist for
cable television providers capable of delivering high quality, Polish-language
programming on a multi-channel basis and other services on cable (i.e. data and
telephones). As such, the Company's current focus is on its cable television
market. The Company's business strategy is designed to increase its average
revenue per subscriber and also, although to a lesser extent, to increase its
subscriber base. The Company intends to achieve these goals by increasing
penetration of new service products within existing upgraded homes; providing
additional revenue-generating services to existing customers, including Internet
services; developing content tailored to the interests of existing subscribers;
and improving the effectiveness of the Company's sales and marketing efforts.

                                       10
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

    The Company also intends to increase the effectiveness of its operations and
reduce its expenses by enhancing internal controls; improving corporate
decision-making processes; reorganizing the Company so as to simplify its legal
structure; and using local rather than expatriate employees in management,
thereby reducing general and administrative costs.

    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 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.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

    The accompanying consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States
("U.S. GAAP").

    The Company maintains its books of accounts in Poland, the Netherlands and
in the United States of America in accordance with local accounting standards in
the respective countries. These financial statements include all adjustments to
the Company's statutory books to present these statements in accordance with
U.S. GAAP.

    The consolidated financial statements include the financial statements of
Poland Communications, Inc. and its wholly owned and majority owned
subsidiaries. All significant intercompany balances and transactions have been
eliminated in consolidation.

CASH AND CASH EQUIVALENTS

    Cash and cash equivalents consist of cash and other short-term investments
with original maturities of three months or less.

USE OF ESTIMATES

    The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the amounts of revenues and expenses during the
reporting period. Our actual results could differ from those estimates, which
include, but are not limited to: allowance for doubtful accounts, impairment
charges of long lived assets, equity investment and revenue recognition.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

    The allowance for doubtful accounts is based upon the Company's assessment
of probable loss related to overdue accounts receivable. Upon disconnection of
the subscriber, the account is fully reserved. The allowance is maintained on
the books either until receipt of payment, or until the account is deemed
uncollectable for a maximum of three years.

                                       11
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

REVENUE RECOGNITION

    Revenue related to the provision of cable television and Internet services
to customers are recognized in the period in which the related services are
provided in accordance with SAB 101 Revenue Recognition in Financial Statements
and SFAS 51 Financial Reporting by Cable Television Companies.

CABLE TELEVISION REVENUE:

    Cable television revenues are recognized in accordance with SFAS 51
Financial Reporting by Cable Television Companies. Revenue from subscription
fees is recognized on a monthly basis as the service is provided. Installation
fee revenue, for connection to the Company's cable television system, is
recognized to the extent of direct selling costs and the balance is deferred and
amortized into income over the estimated average period that new subscribers are
expected to remain connected to the systems.

INTERNET SERVICE REVENUES:

    The Company also provides Internet services to its cable television
customers. Revenue from subscription is recognized on a monthly basis as the
service is provided. Installation fee revenue is deferred and amortized to
income over the estimated average period that new subscribers are expected to
remain connected to the system in accordance with SAB 101 Revenue Recognition in
Financial Statements.

TAXATION

    Income taxes are accounted for under the asset and liability method in
accordance with SFAS 109, "Accounting for Income Taxes". Deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases and operating loss and tax credit
carry forwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.

    U.S. TAXATION - PCI is subject to U.S. Federal taxation on its worldwide
income. Polish companies that are not engaged in a trade or business within the
U.S. or that do not derive income from U.S. sources are not subject to U.S.
income tax.

    FOREIGN TAXATION - Polish companies are subject to corporate income taxes,
value added tax (VAT) and various local taxes within Poland, as well as import
duties on materials imported by them into Poland.

    Income tax for other foreign companies is calculated in accordance with
Polish tax regulations. Due to differences between accounting practices under
Polish tax regulations and those required by U.S. GAAP, certain income and
expense items are recognized in different periods for financial reporting
purposes and income tax reporting purposes, which may result in deferred income
tax assets and liabilities.

    Effective January 1998, the Company adopted EITF 92-8, "Accounting for the
Income Tax Effects under FASB Statement No. 109 of a Change in Functional
Currency When an Economy Ceases to Be Considered Highly Inflationary". As a
result of adopting EITF 92-4, "Accounting for a Change in Functional Currency
When the Economy Ceases to Be Considered Highly Inflationary", the Company's

                                       12
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

functional currency bases exceeded the local currency tax bases of non-monetary
items. The differences between the new functional currency and the tax bases
have been recognized as temporary differences in accordance with EITF 92-8.

PROPERTY, PLANT AND EQUIPMENT

    Property, plant and equipment include assets used in the development and
operation of the various cable television systems. During the period of
construction, plant costs and a portion of design, development and related
overhead costs are capitalized as a component of the Company's investment in
cable television systems. When material, the Company capitalizes interest costs
incurred during the period of construction in accordance with SFAS No. 34,
"Capitalization of Interest Cost". Interest is not capitalized for short-term
construction projects. During the three months ended March 31, 2002 and 2001, no
interest costs were capitalized.

    Cable subscriber related costs and general and administrative expenses are
charged to operations when incurred.

    Depreciation is computed for financial reporting purposes using the
straight-line method over the following estimated useful lives:

<Table>
<S>                                                           <C>
Cable system assets.........................................  10 years
Set-top boxes...............................................  5 years
Vehicles....................................................  5 years
Other property, plant and equipment.........................  5-10 years
</Table>

INVENTORIES FOR CONSTRUCTION

    Inventories for construction are stated at the lower of cost, determined by
the average cost method, or net realizable value. Inventories are principally
related to cable systems. Cost of inventory includes purchase price,
transportation, customs and other direct costs.

GOODWILL AND OTHER INTANGIBLES

    Prior to the Merger, goodwill, which represents the excess of purchase price
over fair value of net assets acquired, was amortized on a straight-line basis
over the expected periods to be benefited, generally ten years, with the
exception of amounts paid relating to non-compete agreements. The portion of the
purchase price relating to non-compete agreements was amortized over the term of
the underlying agreements, generally five years.

    Effective as of the Merger Date, August 6, 1999, the Company revalued all
its previously existing goodwill, including amounts related to non-compete
agreements that related to transactions completed prior to the Merger. The
goodwill that was pushed down to the Company was amortized using straight-line
basis over the expected periods to be benefited, which is fifteen years. The
Company adopted SFAS 142 "Goodwill and Other Intangible Assets" ("SFAS 142"), on
January 1, 2002. In connection therewith, the Company no longer amortizes such
goodwill.

    Through its subsidiaries, the Company has entered into lease agreements with
the Polish national telephone company ("TPSA"), for the use of underground
telephone conduits for cable wiring. Costs related to obtaining conduit and
franchise agreements with housing cooperatives and governmental authorities are
capitalized generally over a period of ten years. In the event the Company does
not

                                       13
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

proceed to develop cable systems within designated cities, costs previously
capitalized will be charged to expense.

    In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 141, "Business Combinations"
("SFAS 141"), which was required to be adopted July 1, 2001. SFAS 141 requires
the purchase method of accounting for all business combinations initiated after
June 30, 2001. The Company has applied SFAS 141 to its only applicable
transaction, the purchase of the minority interest in PCBV in August 28, 2001.

DEFERRED FINANCING COSTS

    Costs incurred to obtain financing have been deferred and amortized as
interest expense over the life of the loan using the effective interest method.
Such costs were included in the Merger as part of the purchase accounting
adjustment in 1999.

INVESTMENT IN AND ADVANCES TO AFFILIATED COMPANIES, ACCOUNTED FOR UNDER THE
EQUITY METHOD

    For those investments in companies in which the Company's ownership interest
is 20% to 50%, its investments are held through a combination of voting common
stock, preferred stock, debentures or convertible debt and/or the Company exerts
significant influence through board representation and management authority, or
in which majority control is deemed to be temporary, the equity method of
accounting is used. Under this method, the investment, originally recorded at
cost, is adjusted to recognize the Company's proportionate share of net earnings
or losses of the affiliates, limited to the extent of the Company's investment
in and advances to the affiliates, including any debt guarantees or other
contractual funding commitments. The Company's proportionate share of net
earnings or losses of affiliates includes the amortization of the excess of its
cost over its proportionate interest in each affiliate's net tangible assets or
the excess of its proportionate interest in each affiliate's net tangible assets
in excess of its cost.

STOCK-BASED COMPENSATION

    The Company has adopted SFAS No. 123, "Accounting For Stock-Based
Compensation", which gives companies the option to adopt the fair value based
method for expense recognition of employee stock options and other stock-based
awards or to account for such items using the intrinsic value method as outlined
under APB Opinion No. 25, "Accounting For Stock Issued To Employees", with pro
forma disclosure of net loss and loss per share as if the fair value method had
been applied. The Company has elected to apply APB Opinion No. 25 and related
interpretations for stock options and other stock-based awards.

FOREIGN CURRENCIES

    Foreign currency transactions are recorded at the exchange rate prevailing
at the date of the transactions. Assets and liabilities denominated in foreign
currencies are translated at the rates of exchange at balance sheet date. Gains
and losses on foreign currency transactions are included in the consolidated
statement of operations.

    The financial statements of foreign subsidiaries are translated into U.S.
dollars using (i) exchange rates in effect at period end for assets and
liabilities, and (ii) average exchange rates during the period for results of
operations. Adjustments resulting from translation of financial statements are
reflected in

                                       14
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

accumulated other comprehensive income/(loss) as a separate component of
stockholder's equity. The Company considers all of its intercompany loans to its
Polish subsidiaries to be of a long-term investment nature. As a result, any
foreign exchange gains or losses resulting from the intercompany loans are
reported in accumulated other comprehensive loss.

    Effective January 1, 1998, Poland is no longer deemed to be a highly
inflationary economy. In accordance with this change, the Company established a
new functional currency bases for nonmonetary items of its Polish subsidiaries
in accordance with guidelines established within EITF Issue 92-4, "Accounting
For a Change in Functional Currency When an Economy Ceases to Be Considered
Highly Inflationary." That basis is computed by translating the historical
reporting currency amounts of non-monetary items into the local currency at
current exchange rates. As a result of this change, the Company's functional
currency bases exceeded the local currency tax bases of non-monetary items. The
differences between the new functional currency and the tax bases have been
recognized as temporary differences.

    Prior to January 1, 1998 the financial statements of foreign subsidiaries
were translated into U.S. dollars using (i) exchange rates in effect at period
end for monetary assets and liabilities, (ii) exchange rates in effect at
transaction dates (historical rates) for non-monetary assets and liabilities,
and (iii) average exchange rates during the period for revenues and expenses,
other than those revenues and expenses that relate to non-monetary assets and
liabilities (primarily amortization of fixed assets and intangibles) which are
translated using the historical exchange rates applicable to those non-monetary
assets and liabilities. Adjustments resulting from translation of financial
statements prior to the year 1998 were reflected as foreign exchange gains or
losses in the consolidated statements of operations.

FAIR VALUE OF FINANCIAL INSTRUMENTS

    SFAS No. 107, "Disclosures About Fair Value of Financial Instruments"
requires the Company to make disclosures of fair value information of all
financial instruments, whether or not recognized on the consolidated balance
sheets, for which it is practicable to estimate fair value.

    The Company's financial instruments include cash and cash equivalents,
accounts receivable, accounts payable, redeemable preferred stock, mandatorily
redeemable debenture stock and accrued expenses and notes payable. At March 31,
2002 and December 31, 2001, the carrying value of cash and cash equivalents,
accounts receivable, accounts payable and accrued expenses, and other current
liabilities on the accompanying consolidated balance sheets approximates fair
value due to the short maturity of these instruments.

    At March 31, 2002 and December 31, 2001, the carrying value of the
redeemable preferred stock has been determined based upon the amount of future
cash flows discounted using the Company's estimated borrowing rate for similar
instruments. It was not practicable to estimate the fair value of the redeemable
preferred stock due to the fact that the instruments are wholly owned by the
Company's parent.

    At March 31, 2002 and December 31, 2001, the fair value of the Company's
notes payable balance approximated $14,811,000 and $14,916,000, respectively
based on the last trading price of the notes as of these dates. It was not
practical to estimate the fair value due to affiliate and notes receivable from
affiliates due to the nature of these instruments, the circumstances surrounding
their issuance, and the absence of quoted market prices for similar financial
instruments. At the date of the Merger, the PCI

                                       15
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

Notes were restated to their fair market value at this date. The resulting
$1.6 million increase was recorded in the pushed-down purchased accounting
entries.

IMPAIRMENT OF LONG-LIVED ASSETS

    The Company assesses the recoverability of long-lived assets (mainly
property, plant and equipment, intangibles, and certain other assets) by
determining whether the carrying value of the assets can be recovered over the
remaining lives through projected undiscounted future operating cash flows,
expected to be generated by such assets. If impairment in value is estimated to
have occurred, the assets carrying value is reduced to its estimated fair value.
The assessment of the recoverability of long-lived assets will be impacted if
estimated future operating cash flows are not achieved. As identified in
Note 3, the Company's existing liquidity problems may result in future
impairments of long-lived assets if the Company does not have adequate financing
available to execute its business strategy. Additionally, 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 impair certain of its long-lived assets. The Company is currently in the
process of adopting the New Accounting Standards discussed in Note 5 to the
Unaudited Financial Statements. As of the date of filing this Form 10-Q, the
Company has not completed its evaluation of the impact of adopting these New
Standards. However, management is aware that the adoption could result in
material adjustments to its long-lived assets and its statement of operations
during 2002.

ADVERTISING COSTS

    All advertising costs of the Company are expensed as incurred. For three
months ended March 31, 2002 and 2001, the Company incurred advertising costs of
approximately $305,000, and $182,000, respectively.

5.  NEW ACCOUNTING STANDARDS

ADOPTED

    In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 141, "Business Combinations,"
("SFAS 141"), which is required to be adopted July 1, 2001. SFAS 141 requires
the purchase method of accounting for all business combinations initiated after
June 30, 2001. The Company has applied SFAS 141 to its only applicable
transaction, the purchase of the minority interest in PCBV in August 28, 2001.

    In July 2001, the Financial Accounting Standards Board issued SFAS No. 142,
"Goodwill and Other Intangible Assets" ("SFAS 142"), which requires goodwill and
intangible assets with indefinite useful lives to no longer be amortized, but to
be tested for impairment at least annually. Intangible assets that have finite
lives will continue to be amortized over their estimated useful lives. The
amortization and non-amortization provisions of SFAS 142 will be applied to all
goodwill and intangible assets acquired after June 30, 2001. Effective
January 1, 2002, the Company was required to apply all other provisions of
SFAS 142. As of January 1, 2002, the Company ceased the amortization on its
goodwill. Accordingly, the consolidated statement of operations for the three
months ended March 31, 2002 does not include any such amortization expense. For
the three months ended March 31, 2001, the consolidated statement of operations
included amortization expense of approximately $6.6 million. The

                                       16
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

Company is currently evaluating the additional impact, if any, the adoption of
SFAS 142 will have on the Company's financial position and results of
operations.

TO BE ADOPTED

    In August 2001, the Financial Accounting Standards Board issued SFAS
No. 143, "Accounting for Asset Retirement Obligations", ("SFAS 143"). This
statement addresses the financial accounting and reporting for obligations
associated with the retirement of tangible long-lived assets and the associated
asset retirement costs. SFAS 143 requires that the fair value of a liability for
an asset retirement obligation be recognized in the period in which it is
incurred if a reasonable estimate of fair value can be made. The associated
asset retirement costs are capitalized as part of the carrying amount of the
long-lived asset and reported as a liability. This statement is effective for
fiscal years beginning after June 15, 2002. The adoption of SFAS 143 is not
anticipated to have a material impact on Company's financial position or results
of operations.

    In August 2001, the Financial Accounting Standards Board issued SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets"
("SFAS 144"), which is effective for fiscal periods beginning after
December 15, 2001 and interim periods within those fiscal years. SFAS 144
establishes an accounting model for impairment or disposal of long-lived assets
to be disposed. The Company is currently evaluating the potential impact, if
any, the adoption of SFAS 144 will have on Company's financial position and
results of operation. The Company expects it will have SFAS 144 evaluation
completed during the fourth quarter of 2002. At this point, management is aware
that the adoption of SFAS 144 could result in material adjustments to its
long-lived assets and its statement of operations during 2002.

6.  RELATED PARTY TRANSACTIONS

    During the ordinary course of business, the Company enters into transactions
with related parties. The principal related party transactions are described
below.

CALL CENTER REVENUE

    The Company has provided certain call center services to TKP. The total
revenue from these services amounted to $918,000 for the three months ended
March 31, 2002; there was no such revenue during three months ended 2001.

DIRECT OPERATING EXPENSES CHARGE BY AFFILIATES

    Programming has been provided to the Company by certain of its affiliates.
The Company incurred programming fees from these affiliates of $2,966,000 and
$6,425,000 for the three months ended March 31, 2002 and 2001, respectively.

    The Company was also provided with Canal+ Multiplex programming by TKP. The
total cost related to this service amounted $29,000 for the three months ended
March 31, 2002; there were no such costs during three months ended 2001.

    The Company has incurred direct cost related to Internet services from its
affiliates amounting to $326,000 and $51,000 for the three months ended
March 31, 2002 and 2001, respectively.

                                       17
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

INTEREST EXPENSE

    During the three months ended March 31, 2002 and 2001, the Company incurred
interest expense in relation to the loans payable to UPC Polska of $228,000 and
$227,000, respectively.

7.  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 months ended
March 31, 2002.

8.  LOSS PER SHARE

    Basic loss per common share is based on the weighted average number of
common shares outstanding of 18,948 for three months periods ended March 31,
2002 and 2001.

9.  COMMITMENTS AND CONTINGENCIES

BUILDING LEASE

    The Company leases several offices and warehouses within Poland under
cancelable operating leases. The future minimum lease payments as of March 31,
2002 are $1,224,000 in 2002, $1,208,000 in 2003, $1,191,000 in 2004, $1,187,000
in 2005 and $475,000 in 2006.

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. 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 2002 and 2003 only, as all leases are cancelable in accordance with
the aforementioned terms. The future minimum lease commitments related to these
conduit leases approximates $920,000 as of March 31, 2002.

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 twenty 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 March 31, 2002, the Company had an aggregate minimum commitment
in relation to these agreements of approximately $127,919,000 over the next
sixteen years, approximating $16,748,000 in 2002, $19,906,000

                                       18
<Page>
                          POLAND COMMUNICATIONS, INC.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

in 2003, $16,105,000 in 2004, $12,589,000 in 2005, $6,064,000 in 2006 and
$56,507,000 in 2007 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.

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.

HBO LAWSUIT

    Two of the Company's subsidiaries, Telewizja Kablowa Gosat-Service Sp. z
o.o. and PTK S.A., and four unrelated Polish cable operators and HBO Polska Sp.
z o.o. ("HBO Polska") were made defendants in a lawsuit instituted by Polska
Korporacja Telewizyjna Sp. z o.o., an indirect partially-owned subsidiary of
Canal+. The lawsuit was filed in the Provincial Court in Warsaw, XX Economic
Division (Sad Wojewodzki w Warszawie, Wydzial XX Gospodarczy) (the "Court"). The
main defendant in the proceedings is HBO Polska which is accused of broadcasting
HBO television programming in Poland without a license from the Polish National
Radio and Television Council as required by the Polish Television Act and
thereby undertaking an activity constituting an act of unfair competition. The
plaintiff has asked the Court to order HBO Polska to cease broadcasting of its
programming in Poland until it has received a broadcasting license from the
Polish National Radio and Television Council, and that the defendant cable
operators be ordered (i) to cease carrying the HBO Polska programming on their
cable networks in Poland until HBO Polska has received a broadcasting license
from the Polish National Radio and Television Council, (ii) not to use their
current filters for the purpose of unscrambling the HBO Polska programming, and
(iii) in the future, to use effective encoding systems and systems of controlled
access to the HBO Polska programming. The Company does not believe that the
lawsuit will have a material adverse effect on its business operations. The case
is still pending in the Court.

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 March 31, 2002 the Company's Polish subsidiaries had no profit
available for distribution as dividends.

                                       19
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                          CONSOLIDATED BALANCE SHEETS

<Table>
<Caption>
                                                               MARCH 31,    DECEMBER 31,
                                                                 2002           2001
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN THOUSANDS)
<S>                                                           <C>           <C>
                                         ASSETS
Current assets:
  Cash and cash equivalents.................................   $   1,301     $   2,933
  Trade accounts receivable, net of allowance for doubtful
    accounts of $3,084 in 2002 and $2,733 in 2001...........       5,442         6,428
  Prepayments...............................................         891           733
  Due from affiliates.......................................          --           206
                                                               ---------     ---------
    Total current assets....................................       7,634        10,300
                                                               ---------     ---------

Property, plant and equipment:
  Cable system assets.......................................     131,004       134,870
  Construction in progress..................................         600           774
  Vehicles..................................................       1,436         1,435
  Office, furniture and equipment...........................      10,743        10,907
  Other.....................................................       8,231         8,520
                                                               ---------     ---------
                                                                 152,014       156,506

  Less accumulated depreciation.............................     (47,527)      (43,307)
                                                               ---------     ---------
    Net property, plant and equipment.......................     104,487       113,199

Inventories for construction................................       3,755         4,008
Intangible assets, net (note 2).............................     313,128       325,027
                                                               ---------     ---------

    Total assets............................................   $ 429,004     $ 452,534
                                                               =========     =========

                          LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses.....................   $  16,608     $  17,560
  Deferred revenue..........................................       2,472         2,558
  Notes payable and accrued interest to PCI.................     251,711       249,765
  Due to PCI and UPC Polska and affiliates..................      64,230        66,612
                                                               ---------     ---------
    Total current liabilities...............................     335,021       336,495
                                                               ---------     ---------

Commitments and contingencies (note 9)

  Minority Interest.........................................         240           285

Stockholders' equity:
  Capital stock par value, $0.50 par; 200,000 shares
    authorized, issued and outstanding......................         100           100
  Paid-in capital...........................................     288,783       288,783
  Accumulated other comprehensive loss......................     (31,705)      (19,333)
  Accumulated deficit.......................................    (163,435)     (153,796)
                                                               ---------     ---------
    Total stockholders' equity..............................      93,743       115,754
                                                               ---------     ---------

    Total liabilities and stockholders' equity..............   $ 429,004     $ 452,534
                                                               =========     =========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       20
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<Table>
<Caption>
                                                            THREE MONTHS ENDED   THREE MONTHS ENDED
                                                              MARCH 31, 2002       MARCH 31, 2001
                                                            ------------------   ------------------
                                                                        (IN THOUSANDS)
<S>                                                         <C>                  <C>
Revenues (note 6).........................................       $ 19,619             $ 17,653

Operating expenses:
  Direct operating expenses charged by third parties (note
    6)....................................................          6,946                5,592
  Direct operating expenses charged by affiliates (note
    6)....................................................          4,433                7,028
  Selling, general and administrative expenses............          4,741                6,190
  Depreciation and amortization...........................          6,021               11,042
                                                                 --------             --------
    Total operating expenses..............................         22,141               29,852
                                                                 --------             --------

    Operating loss........................................         (2,522)             (12,199)

Interest income...........................................             15                   53
Interest expense (note 6).................................         (4,498)              (4,213)
Foreign exchange gain / (loss), net.......................         (2,614)                 804
                                                                 --------             --------

  Loss before minority interest and income taxes..........         (9,619)             (15,555)

Minority interest in subsidiary loss......................             45                   (6)
Income tax expense........................................            (65)                 (20)
                                                                 --------             --------

    Net loss..............................................       $ (9,639)            $(15,581)
                                                                 ========             ========

    Basic net loss per common share.......................       $ (48.20)            $ (77.91)
                                                                 ========             ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       21
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                                  (UNAUDITED)

<Table>
<Caption>
                                                            THREE MONTHS ENDED   THREE MONTHS ENDED
                                                              MARCH 31, 2002       MARCH 31, 2001
                                                            ------------------   ------------------
                                                                        (IN THOUSANDS)
<S>                                                         <C>                  <C>
Net loss..................................................       $ (9,639)            $(15,581)

Other comprehensive (loss) / income:
  Cumulative translation adjustment.......................        (12,372)               3,966
                                                                 --------             --------
Comprehensive loss........................................       $(22,011)            $(11,615)
                                                                 ========             ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       22
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<Table>
<Caption>
                                                            THREE MONTHS ENDED   THREE MONTHS ENDED
                                                              MARCH 31, 2002       MARCH 31, 2001
                                                            ------------------   ------------------
                                                                        (IN THOUSANDS)
<S>                                                         <C>                  <C>
Cash flows from operating activities:
  Net loss................................................       $(9,639)             $(15,581)
  Adjustments to reconcile net loss to net cash provided
    by operating activities:
      Monority interest...................................           (45)                    6
      Depreciation and amortization.......................         6,021                11,042
      Interest expense added to notes payable to PCI......         4,497                 4,213
      Unrealised foreign exchange (gain)/losses...........         2,812                  (432)
      Other...............................................             7                    --
      Changes in operating assets and liabilities:
        Accounts receivable...............................           759                 1,402
        Other current assets..............................           (47)                 (465)
        Accounts payable..................................           (81)               (2,191)
        Deferred revenue..................................             4                   (73)
        Amounts due to affiliates and parent..............        (2,382)                4,321
        Amounts due from UPC affiliates...................           206                  (513)
        Other.............................................            --                   327
                                                                 -------              --------
          Net cash provided by operating activities.......         2,112                 2,056
                                                                 -------              --------

Cash flows from investing activities:
  Construction and purchase of property, plant and
    equipment.............................................        (1,090)               (8,891)
                                                                 -------              --------
          Net cash used in investing activities...........        (1,090)               (8,891)
                                                                 -------              --------

Cash flows from financing activities:
  Proceeds/(repayment) from parent, net...................        (2,551)                7,542
                                                                 -------              --------
          Net cash (used in)/provided by financing
            activities....................................        (2,551)                7,542
                                                                 -------              --------
          Net increase/(decrease) in cash.................        (1,529)                  707

Effect of exchange rates on cash and cash equivalents.....          (103)                   51
Cash and cash equivalents at beginning of the period......         2,933                 1,159
                                                                 -------              --------

Cash and cash equivalents at end of the period............       $ 1,301              $  1,917
                                                                 =======              ========

Supplemental cash flow information:
  Cash paid for interest..................................       $    34              $     28
                                                                 =======              ========
  Cash paid for income taxes..............................       $    22              $     21
                                                                 =======              ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       23
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                            MARCH 31, 2002 AND 2001

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 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 March 31, 2002. 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 2001 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.  GOODWILL AND OTHER INTANGIBLE ASSETS

    On June 2, 1999, UPC Polska, Inc., ("UPC Polska"), 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.

    As a result of the Acquisition, UPC pushed down the goodwill of
approximately $979.3 million to UPC Polska establishing a new basis of
accounting as of the acquisition date. The goodwill was allocated between the
UPC Polska's business segments based on the investment model used for
acquisition. PCBV was allocated approximately $354.0 million of goodwill. During
the year ended December 31, 2001 this figure increased by $23.4 million to
$377.4 million due to the purchase by an affiliate of UPC Polska of outstanding
stock from PCBV's minority shareholders in connection with settlement of the
PCBV minority shareholders lawsuit.

    As of January 1, 2002, the Company adopted SFAS No. 142, which requires
goodwill and intangible assets with indefinite lives to no longer be amortized.
Accordingly, the consolidated statement of operations for the three months ended
March 31, 2002 does not include any such amortization expense. For the three
months ended March 31, 2001, the consolidated statement of operations included
amortization expense of approximately $5.9 million.

                                       24
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

3.  GOING CONCERN AND LIQUIDITY RISKS

    These unaudited 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 flows 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.

    PCBV relies solely on PCI, a wholly owned subsidiary of UPC Polska, for its
sources of liquidity and financing, which relies solely on UPC for its sources
of liquidity and financing. The financial and liquidity problems experienced by
UPC and UPC Polska, as described further below, have a significant impact on
PCBV and its shareholder, PCI, ability to continue as going concerns.

    During 2001, UPC Polska reviewed its long term plan for its operations and
revised its business strategy for cable television from aggressive growth to
focus on achievement of positive cash flow. As a result, UPC Polska, PCI and
PCBV expect to have positive EBITDA and cash flows in 2002.

    As of March 31, 2002, the Company has negative working capital of
$327.4 million and has experienced operating losses of $2.5 million and
$12.2 million during the three months ended March 31, 2002 and 2001,
respectively. It also has significant commitments under non-cancelable operating
leases and for programming rights, as well as the notes and accrued interest due
to PCI of $251.7 million, which are due on demand.

    As of March 31, 2002, PCI has negative working capital of $68.1 million and
has experienced operating losses of $2.5 million and $13.4 million during the
three months ended March 31, 2002 and 2001, respectively. It also has
significant commitments under non-cancelable operating leases and for
programming rights, as well as repayment obligations related to the PCI Notes.
During 2002, PCI will be required to make repayment of the Bank Rozwoju facility
of $0.3 million. In 2003, PCI will also be required to repay of approximately
$14.5 million in principal amount under the PCI Notes.

    As of March 31, 2002, UPC Polska has a negative working capital of
$394.3 million, stockholder's deficit of $302.3 million and has experienced
operating losses of $4.4 million and $51.8 million during the three months ended
March 31, 2002 and 2001, respectively. Additionally, UPC Polska has significant
funding obligations during 2002 and 2003, in which it does not have the current
cash available or available borrowing capacity to fund these obligations.

    The Company, since its August 6, 1999 Merger, has relied completely on
funding from its shareholder PCI. The Company repaid $2.6 million to PCI during
the period of three months ended March 31, 2002. During the period of three
months ended March 31, 2001 the Company received funding in the form of proceeds
from notes of $7.5 million. Additionally, PCI allowed the Company to accrue, but
not pay interest of $4.5 million and $4.2 million for the periods of three
months ended March 31, 2002 and 2001, respectively.

    As a result of UPC's decision to not make interest payments on its senior
notes and senior discount notes on February 1, 2002, and May 1, 2002, and its
failure to make the interest payment upon the expiration of the applicable
30-day grace period, these actions constituted Events of Default pursuant to
UPC's senior notes and senior discount notes. The occurrence of these Events of
Default gave the related trustees under the indebtedness, or requisite number of
holders of such notes, the right to accelerate the maturity of all of UPC's
senior notes and senior discount notes and then to

                                       25
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                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

foreclose on the collateral securing these notes. As of the date of the filing
of this Quarterly Report on Form 10-Q, neither any of the trustees for the
respective notes nor the requisite number of holders of those notes have
accelerated the payment of principal and interest under these notes. UPC has
entered into a non-binding Memorandum of Understanding with
UnitedGlobalCom, Inc., UPC's parent, to enter into negotiations with the holders
of UPC's senior notes and senior discount notes to attempt to reach agreement on
a means to restructure UPC's indebtedness at the holding company level. In
addition, UPC has received waivers from the lenders under its and its
subsidiaries' bank facilities for the cross Events of Default under such
facilities that existed or may exist as a result of UPC's failure to make the
interest payments due on February 1, 2002 and May 1, 2002 on UPC's outstanding
senior notes within the applicable grace periods. Although the Company had
anticipated being able to rely on PCI, which is relying on UPC Polska, which is
relaying on UPC, to meet its payment obligations, given UPC's, UPC Polska's and
PCI's liquidity concerns, the Company is not certain that it will receive the
necessary financing from PCI. If the Company is unable to rely on PCI for
financial support, it will have to meet its payment obligations with cash on
hand or with funds obtained from public or private debt or bank financing or any
combination thereof, subject to the restrictions contained in the indentures
governing the outstanding senior indebtedness of PCI, UPC Polska, UPC and
UnitedGlobalCom, Inc., UPC's parent.

    As of March 31, 2002, a significant amount of UPC Polska's unrestricted cash
has limitations imposed on it by its indentures and notes payable to UPC. As a
result of these limitations and the potential inability of UPC to provide
necessary funding, if required by UPC Polska, UPC Polska has limited sources of
funding available to it outside of its operating cash flows. Additionally, as a
result of material adverse change provisions contained in the debt agreements
between UPC and UPC Polska, the notes payable to UPC of $451.7 million have been
classified as current in the UPC Polska financial statements. In the event UPC
accelerated payment under its notes, UPC Polska would have limited funds or
available borrowings to repay these notes. Additionally, the UPC Polska debt
agreements have various Events of Default, including the acceleration of the
payment of other debt of UPC Polska in excess of $15 million. In the event UPC
Polska's debt were to be accelerated or it were to have an other Event of
Default which were not cured in a timely manner pursuant to the respective
agreements, UPC Polska's and PCI's Notes of $416.9 million would become due. UPC
Polska has evaluated the likelihood of it experiencing an Event of Default as of
the date of filing this Quarterly Report on Form 10-Q and has determined, based
on its assessment, that it is not "virtually certain" that an Event of Default
will occur. As a result, in the UPC Polska March 31, 2002 and December 31, 2001
consolidated balance sheet, the amounts related to the UPC Polska Notes have
been reflected as a long-term liability. UPC Polska's available cash on hand
will be insufficient to satisfy all of its obligations, and UPC Polska cannot be
certain that it will be able to obtain the necessary financing at all, or on
terms that will be favorable to UPC Polska.

    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.

                                       26
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

    Management of the Company believes that significant opportunities exist for
cable television providers capable of delivering high quality, Polish-language
programming on a multi-channel basis and other services on cable (i.e. data and
telephones). As such, the Company's current focus is on its cable television
market. The Company's business strategy is designed to increase its average
revenue per subscriber and also, although to a lesser extent, to increase its
subscriber base. The Company intends to achieve these goals by increasing
penetration of new service products within existing upgraded homes; providing
additional revenue-generating services to existing customers, including Internet
services; developing content tailored to the interests of existing subscribers;
and improving the effectiveness of the Company's sales and marketing efforts.

    The Company also intends to increase the effectiveness of its operations and
reduce its expenses by enhancing internal controls; improving corporate
decision-making processes; reorganizing the Company so as to simplify its legal
structure; and using local rather than expatriate employees in management,
thereby reducing general and administrative costs.

    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 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.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

    The accompanying consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States
("U.S. GAAP").

    The Company maintains its books of accounts in Poland and the Netherlands in
accordance with local accounting standards in the respective countries. These
financial statements include all adjustments to the Company's statutory books to
present these statements in accordance with U.S. GAAP.

    The consolidated financial statements include the financial statements of
Poland Cablevision (Netherlands) B.V. and its wholly owned and majority owned
subsidiaries. All significant intercompany balances and transactions have been
eliminated in consolidation.

CASH AND CASH EQUIVALENTS

    Cash and cash equivalents consist of cash and other short-term investments
with original maturities of three months or less.

USE OF ESTIMATES

    The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the amounts of revenues and expenses during the
reporting period. Our actual results could differ from those estimates, which
include, but are not limited to: allowance for doubtful accounts, impairment
charges of long lived assets, equity investment and revenue recognition.

                                       27
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

ALLOWANCE FOR DOUBTFUL ACCOUNTS

    The allowance for doubtful accounts is based upon the Company's assessment
of probable loss related to overdue accounts receivable. Upon disconnection of
the subscriber, the account is fully reserved. The allowance is maintained on
the books either until receipt of payment, or until the account is deemed
uncollectable for a maximum of three years.

REVENUE RECOGNITION

    Revenue related to the provision of cable television and Internet services
to customers are recognized in the period in which the related services are
provided in accordance with SAB 101 Revenue Recognition in Financial Statements
and SFAS 51 Financial Reporting by Cable Television Companies.

CABLE TELEVISION REVENUE:

    Cable television revenues are recognized in accordance with SFAS 51
Financial Reporting by Cable Television Companies. Revenue from subscription
fees is recognized on a monthly basis as the service is provided. Installation
fee revenue, for connection to the Company's cable television system, is
recognized to the extent of direct selling costs and the balance is deferred and
amortized into income over the estimated average period that new subscribers are
expected to remain connected to the systems.

INTERNET SERVICE REVENUES:

    The Company provides Internet services to its cable television customers.
Revenue from subscription is recognized on a monthly basis as the service is
provided. Installation fee revenue is deferred and amortized to income over the
estimated average period that new subscribers are expected to remain connected
to the system in accordance with SAB 101 Revenue Recognition in Financial
Statements.

TAXATION

    Income taxes are accounted for under the asset and liability method in
accordance with SFAS 109, "Accounting for Income Taxes". Deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases and operating loss and tax credit
carry forwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.

    NETHERLANDS TAXATION - The income tax treaty currently in force between the
Netherlands and the United States provides that the Netherlands may impose a
withholding tax at a maximum of 5% on dividends paid by PCBV to its
stockholders.

    FOREIGN TAXATION - Polish companies are subject to corporate income taxes,
value added tax (VAT) and various local taxes within Poland, as well as import
duties on materials imported by them into Poland.

    Income tax for other foreign companies is calculated in accordance with
Polish tax regulations. Due to differences between accounting practices under
Polish tax regulations and those required by U.S. GAAP, certain income and
expense items are recognized in different periods for financial

                                       28
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

reporting purposes and income tax reporting purposes, which may result in
deferred income tax assets and liabilities.

    Effective January 1998, the Company adopted EITF 92-8, "Accounting for the
Income Tax Effects under FASB Statement No. 109 of a Change in Functional
Currency When an Economy Ceases to Be Considered Highly Inflationary". As a
result of adopting EITF 92-4, "Accounting for a Change in Functional Currency
When the Economy Ceases to Be Considered Highly Inflationary." the Company's
functional currency bases exceeded the local currency tax bases of non-monetary
items. The differences between the new functional currency and the tax bases
have been recognized as temporary differences in accordance with EITF 92-8.

PROPERTY, PLANT AND EQUIPMENT

    Property, plant and equipment include assets used in the development and
operation of the various cable television systems. During the period of
construction, plant costs and a portion of design, development and related
overhead costs are capitalized as a component of the Company's investment in
cable television systems. When material, the Company capitalizes interest costs
incurred during the period of construction in accordance with SFAS No. 34,
"Capitalization of Interest Cost". Interest is not capitalized for short-term
construction projects. During the three months ended March 31, 2002, and 2001,
no interest costs were capitalized.

    Cable subscriber related costs and general and administrative expenses are
charged to operations when incurred.

    Depreciation is computed for financial reporting purposes using the
straight-line method over the following estimated useful lives:

<Table>
<S>                                                           <C>
Cable system assets.........................................  10 years
Set-top boxes...............................................  5 years
Vehicles....................................................  5 years
Other property, plant and equipment.........................  5-10 years
</Table>

INVENTORIES FOR CONSTRUCTION

    Inventories for construction are stated at the lower of cost, determined by
the average cost method, or net realizable value. Inventories are principally
related to cable systems. Cost of inventory includes purchase price,
transportation, customs and other direct costs.

GOODWILL AND OTHER INTANGIBLES

    Prior to the Merger, goodwill, which represents the excess of purchase price
over fair value of net assets acquired, was amortized on a straight-line basis
over the expected periods to be benefited, generally ten years, with the
exception of amounts paid relating to non-compete agreements. The portion of the
purchase price relating to non-compete agreements was amortized over the term of
the underlying agreements, generally five years.

    Effective as of the Merger Date, August 6, 1999, the Company revalued all
its previously existing goodwill, including amounts related to non-compete
agreements that related to transactions completed prior to the Merger. The
goodwill that was pushed down to the Company was amortized using straight-line
basis over the expected periods to be benefited, which is fifteen years. The
Company

                                       29
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

adopted SFAS 142 "Goodwill and Other Intangible Assets" ("SFAS 142"), on
January 1, 2002. In connection therewith, the Company no longer amortizes such
goodwill.

    Through its subsidiaries, the Company has entered into lease agreements with
the Polish national telephone company ("TPSA"), for the use of underground
telephone conduits for cable wiring. Costs related to obtaining conduit and
franchise agreements with housing cooperatives and governmental authorities are
capitalized generally over a period of ten years. In the event the Company does
not proceed to develop cable systems within designated cities, costs previously
capitalized will be charged to expense.

    In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 141, "Business Combinations,"
("SFAS 141"), which was required to be adopted July 1, 2001. SFAS 141 requires
the purchase method of accounting for all business combinations initiated after
June 30, 2001. The Company has applied SFAS 141 to its only applicable
transaction, the purchase of the minority interest in PCBV in August 28, 2001.

DEFERRED FINANCING COSTS

    Costs incurred to obtain financing have been deferred and amortized as
interest expense over the life of the loan using the effective interest method.
Such costs were included at the Merger as part of the purchase accounting
adjustment in 1999.

INVESTMENT IN AND ADVANCES TO AFFILIATED COMPANIES, ACCOUNTED FOR UNDER THE
EQUITY METHOD

    For those investments in companies in which the Company's ownership interest
is 20% to 50%, its investments are held through a combination of voting common
stock, preferred stock, debentures or convertible debt and/or the Company exerts
significant influence through board representation and management authority, or
in which majority control is deemed to be temporary, the equity method of
accounting is used. Under this method, the investment, originally recorded at
cost, is adjusted to recognize the Company's proportionate share of net earnings
or losses of the affiliates, limited to the extent of the Company's investment
in and advances to the affiliates, including any debt guarantees or other
contractual funding commitments. The Company's proportionate share of net
earnings or losses of affiliates includes the amortization of the excess of its
cost over its proportionate interest in each affiliate's net tangible assets or
the excess of its proportionate interest in each affiliate's net tangible assets
in excess of its cost.

STOCK-BASED COMPENSATION

    The Company has adopted SFAS No. 123, "Accounting For Stock-Based
Compensation", which gives companies the option to adopt the fair value based
method for expense recognition of employee stock options and other stock-based
awards or to account for such items using the intrinsic value method as outlined
under APB Opinion No. 25, "Accounting For Stock Issued To Employees", with pro
forma disclosure of net loss and loss per share as if the fair value method had
been applied. The Company has elected to apply APB Opinion No. 25 and related
interpretations for stock options and other stock-based awards.

                                       30
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

FOREIGN CURRENCIES

    Foreign currency transactions are recorded at the exchange rate prevailing
at the date of the transactions. Assets and liabilities denominated in foreign
currencies are translated at the rates of exchange at balance sheet date. Gains
and losses on foreign currency transactions are included in the consolidated
statement of operations.

    The financial statements of foreign subsidiaries are translated into U.S.
dollars using (i) exchange rates in effect at period end for assets and
liabilities, and (ii) average exchange rates during the period for results of
operations. Adjustments resulting from translation of financial statements are
reflected in accumulated other comprehensive income/(loss) as a separate
component of stockholder's equity. The Company considers all of its intercompany
loans to its Polish subsidiaries to be of a long-term investment nature. As a
result, any foreign exchange gains or losses resulting from the intercompany
loans are reported in accumulated other comprehensive loss.

    Effective January 1, 1998, Poland is no longer deemed to be a highly
inflationary economy. In accordance with this change, the Company established a
new functional currency bases for nonmonetary items of its Polish subsidiaries
in accordance with guidelines established within EITF Issue 92-4, "Accounting
for a Change in Functional Currency When an Economy Ceases to Be Considered
Highly Inflationary." That basis is computed by translating the historical
reporting currency amounts of non-monetary items into the local currency at
current exchange rates. As a result of this change, the Company's functional
currency bases exceeded the local currency tax bases of non-monetary items. The
differences between the new functional currency and the tax bases have been
recognized as temporary differences.

    Prior to January 1, 1998 the financial statements of foreign subsidiaries
were translated into U.S. dollars using (i) exchange rates in effect at period
end for monetary assets and liabilities, (ii) exchange rates in effect at
transaction dates (historical rates) for non-monetary assets and liabilities,
and (iii) average exchange rates during the period for revenues and expenses,
other than those revenues and expenses that relate to non-monetary assets and
liabilities (primarily amortization of fixed assets and intangibles) which are
translated using the historical exchange rates applicable to those non-monetary
assets and liabilities. Adjustments resulting from translation of financial
statements prior to the year 1998 were reflected as foreign exchange gains or
losses in the consolidated statements of operations.

FAIR VALUE OF FINANCIAL INSTRUMENTS

    SFAS No. 107, "Disclosures About Fair Value of Financial Instruments"
requires the Company to make disclosures of fair value information of all
financial instruments, whether or not recognized on the consolidated balance
sheets, for which it is practicable to estimate fair value.

    The Company's financial instruments include cash and cash equivalents,
accounts receivable, accounts payable, and accrued expenses and notes payable.

    At March 31, 2002 and December 31, 2001, the carrying value of cash and cash
equivalents, accounts receivable, accounts payable and accrued expenses, and
other current liabilities on the accompanying consolidated balance sheets
approximates fair value due to the short maturity of these instruments.

                                       31
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

IMPAIRMENT OF LONG-LIVED ASSETS

    The Company assesses the recoverability of long-lived assets (mainly
property, plant and equipment, intangibles, and certain other assets) by
determining whether the carrying value of the assets can be recovered over the
remaining lives through projected undiscounted future operating cash flows,
expected to be generated by such assets. If impairment in value is estimated to
have occurred, the assets carrying value is reduced to its estimated fair value.
The assessment of the recoverability of long-lived assets will be impacted if
estimated future operating cash flows are not achieved. As identified in
Note 3, the Company's existing liquidity problems may result in future
impairments of long-lived assets if the Company does not have adequate financing
available to execute its business strategy. Additionally, 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 impair certain of its long-lived assets. The Company is currently in the
process of adopting the New Accounting Standards discussed in Note 5 to the
Unaudited Financial Statements. As of the date of filing this Form 10-Q, the
Company has not completed its evaluation of the impact of adopting these New
Standards. However, management is aware that the adoption could result in
material adjustments to its long-lived assets and its statement of operations
during 2002.

ADVERTISING COSTS

    All advertising costs of the Company are expensed as incurred. For three
months ended March 31, 2002 and 2001, the Company incurred advertising costs of
approximately $305,000, and $182,000, respectively.

5.  NEW ACCOUNTING STANDARDS

ADOPTED

    In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 141, "Business Combinations,"
("SFAS 141"), which is required to be adopted July 1, 2001. SFAS 141 requires
the purchase method of accounting for all business combinations initiated after
June 30, 2001. The Company has applied SFAS 141 to its only applicable
transaction, the purchase of the minority interest in PCBV in August 28, 2001.

    In July 2001, the Financial Accounting Standards Board issued SFAS No. 142,
"Goodwill and Other Intangible Assets" ("SFAS 142"), which requires goodwill and
intangible assets with indefinite useful lives to no longer be amortized, but to
be tested for impairment at least annually. Intangible assets that have finite
lives will continue to be amortized over their estimated useful lives. The
amortization and non-amortization provisions of SFAS 142 will be applied to all
goodwill and intangible assets acquired after June 30, 2001. Effective
January 1, 2002, the Company was required to apply all other provisions of
SFAS 142. As of January 1, 2002, the Company ceased the amortization on its
goodwill. Accordingly, the consolidated statement of operations for the three
months ended March 31, 2002 does not include any such amortization expense. For
the three months ended March 31, 2001, the consolidated statement of operations
included amortization expense of approximately $5.9 million. The Company is
currently evaluating the additional impact, if any, the adoption of SFAS 142
will have on the Company's financial position and results of operations.

                                       32
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

TO BE ADOPTED

    In August 2001, the Financial Accounting Standards Board issued SFAS
No. 143, "Accounting for Asset Retirement Obligations", ("SFAS 143"). This
statement addresses the financial accounting and reporting for obligations
associated with the retirement of tangible long-lived assets and the associated
asset retirement costs. SFAS No. 143 requires that the fair value of a liability
for an asset retirement obligation be recognized in the period in which it is
incurred if a reasonable estimate of fair value can be made. The associated
asset retirement costs are capitalized as part of the carrying amount of the
long-lived asset and reported as a liability. This statement is effective for
fiscal years beginning after June 15, 2002. The adoption of SFAS No. 143 is not
anticipated to have a material impact on Company's financial position or results
of operations.

    In August 2001, the Financial Accounting Standards Board issued SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets",
("SFAS 144"), which is effective for fiscal periods beginning after
December 15, 2001 and interim periods within those fiscal years. SFAS 144
establishes an accounting model for impairment or disposal of long-lived assets
to be disposed. The Company is currently evaluating the potential impact, if
any, the adoption of SFAS 144 will have on Company's financial position and
results of operation. The Company expects it will have SFAS 144 evaluation
completed during the fourth quarter of 2002. At this point, management is aware
that the adoption of SFAS 144 could result in material adjustments to its
long-lived assets and its statement of operations during 2002.

6.  RELATED PARTY TRANSACTIONS

    During the ordinary course of business, the Company enters into transactions
with related parties. The principal related party transactions are described
below.

CALL CENTER REVENUE

    The Company has provided certain call center services to TKP. The total
revenue from these services amounted to $918,000 for the three months ended
March 31, 2002; there was no such revenue in 2001.

DIRECT OPERATING EXPENSES CHARGE BY AFFILIATES

    Programming has been provided to the Company by certain of its affiliates.
The Company incurred programming fees from these affiliates of $2,966,000 and
$6,143,000 for the three months ended March 31, 2002 and 2001, respectively.

    The Company was also provided with Canal+ Multiplex programming by TKP. The
total cost related to this service amounted $29,000 for the three months ended
March 31, 2002; there were no such costs in 2001.

    During the three months ended March 31, 2002 and 2001, the Company was
charged by PCI with $1,112,000 and $834,000, respectively, in relation to cable
network lease.

    The Company has incurred direct cost related to Internet services from its
affiliates amounting to $326,000 and $51,000 for the three months ended
March 31, 2002 and 2001, respectively.

                                       33
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

INTEREST EXPENSE

    During the three months ended 2002 and 2001, the Company incurred interest
expense in relation to the loans payable to PCI and its affiliates of $4,497,000
and $4,213,000, respectively.

7.  RECLASSIFICATIONS

    Certain amounts have been reclassified in the corresponding period's
unaudited consolidated financial statements to conform to the unaudited
consolidated financial statement presentation for the three months ended
March 31, 2002.

8.  LOSS PER SHARE

    Basic loss per common share is based on the weighted average number of
common shares outstanding of 200,000 for the three months ended March 31, 2002
and 2001.

9.  COMMITMENTS AND CONTINGENCIES

BUILDING LEASE

    The Company leases several offices and warehouses within Poland under
cancelable operating leases. The future minimum lease payments as of March 31,
2002 are $1,224,000 in 2002, $1,208,000 in 2003, $1,191,000 in 2004, $1,187,000
in 2005 and $475,000 in 2006.

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. 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 2002 and 2003 only, as all leases are cancelable in accordance with
the aforementioned terms. The future minimum lease commitments related to these
conduit leases approximates $920,000 as of March 31, 2002.

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 twenty 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 March 31, 2002, the Company had an aggregate minimum commitment
in relation to these agreements of approximately $127,919,000 over the next
sixteen years, approximating $16,748,000 in 2002, $19,906,000

                                       34
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                            MARCH 31, 2002 AND 2001

in 2003, $16,105,000 in 2004, $12,589,000 in 2005, $6,064,000 in 2006 and
$56,507,000 in 2007 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.

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.

HBO LAWSUIT

    Two of the Company's subsidiaries, Telewizja Kablowa Gosat-Service Sp. z
o.o. and PTK S.A., and four unrelated Polish cable operators and HBO Polska Sp.
z o.o. ("HBO Polska") were made defendants in a lawsuit instituted by Polska
Korporacja Telewizyjna Sp. z o.o., an indirect partially-owned subsidiary of
Canal+. The lawsuit was filed in the Provincial Court in Warsaw, XX Economic
Division (Sad Wojewodzki w Warszawie, Wydzial XX Gospodarczy) (the "Court"). The
main defendant in the proceedings is HBO Polska which is accused of broadcasting
HBO television programming in Poland without a license from the Polish National
Radio and Television Council as required by the Polish Television Act and
thereby undertaking an activity constituting an act of unfair competition. The
plaintiff has asked the Court to order HBO Polska to cease broadcasting of its
programming in Poland until it has received a broadcasting license from the
Polish National Radio and Television Council, and that the defendant cable
operators be ordered (i) to cease carrying the HBO Polska programming on their
cable networks in Poland until HBO Polska has received a broadcasting license
from the Polish National Radio and Television Council, (ii) not to use their
current filters for the purpose of unscrambling the HBO Polska programming, and
(iii) in the future, to use effective encoding systems and systems of controlled
access to the HBO Polska programming. The Company does not believe that the
lawsuit will have a material adverse effect on its business operations. The case
is still pending in the Court

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 March 31, 2002 the Company's Polish subsidiaries have no
profit available for distribution as dividends.

                                       35
<Page>
          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 Poland Communication, Inc.
("PCI" or 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 2001 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:

    - economic conditions in Poland generally, as well as in the pay television
      business in Poland, including decreasing levels of disposable income per
      household and increasing rates of unemployment;

    - changes in laws and regulations affecting the Company, especially those
      related to copyright and taxation;

    - changes in the television viewing preferences and habits of the Company's
      subscribers;

    - programming alternatives offered by the Company's competitors, especially
      the availability of free programming;

    - the Company's inability to comply with government regulations;

    - the continued strength of the Company's competitors;

    - future financial performance of the Company, UPC Polska and UPC, including
      availability, terms and deployment of capital; and

    - the overall market acceptance of Company's products and services,
      including acceptance of the pricing of those products and services.

OVERVIEW

    The Company operates the largest cable television system in Poland with
approximately 1,864,600 homes passed and approximately 1,005,700 total
subscribers as at March 31, 2002. The Company's

                                       36
<Page>
revenue has increased by $1.0 million from $18.7 million to $19.7 million for
three months ended March 31, 2001 and 2002, respectively. The Company's revenues
have been and will continue to be derived primarily from monthly subscription
fees for cable television services and one-time installation fees for connection
to its cable television networks. 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
March 31, 2002, approximately 62.3% of the Company's subscribers received its
basic package. For the three months ended March 31, 2002, approximately 94.1% of
the Company's cable revenue was derived from monthly subscription fees compared
to approximately 97.7% for the three months ended March 31, 2001.

    The Company also provides Internet services to its cable television
customers. Although the Company does not currently have additional capital to
invest in development of this service, it intends to expand its Internet service
offering at some point in the future. Revenue of $0.9 million for the three
months ended March 31, 2002 and $0.2 million for the three months ended
March 31, 2001 was attributable to the Company's Internet services. Individual
and home office Internet subscribers are charged a monthly subscription fee of
$37.51 and $49.61, respectively, for internet and cable TV services combined.
The standard installation fee is approximately $59.30 for existing cable
customers and approximately $72.40 for new customers.

    In addition, the Company provides certain call center services, such as
billing and subscriber support, to TKP. Revenue of $0.9 million was attributable
to these services for the three months ended March 31, 2002.

    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 has reviewed its business strategy. The Company's principal
objective under its new strategy is for its business to become cash flow
positive in the 2002. It will also focus on enhancing its position, as a leading
provider of cable television in Poland by capitalizing on favorable
opportunities that it believes exists in Poland.

    The Company's business strategy is designed to increase its average revenue
per subscriber, and also, although to a lesser extent, to increase its
subscriber base.

    The Company intends to achieve these goals by:

    - increasing penetration of new service products within existing upgraded
      homes;

    - providing additional revenue-generating services to existing customers,
      including Internet services;

    - developing content tailored to the interests of existing subscribers; and

    - improving the effectiveness of the Company's sales and marketing efforts.

    The Company also intends to increase the effectiveness of its operations and
reduce its expenses by:

    - enhancing internal controls;

                                       37
<Page>
    - improving corporate decision-making processes;

    - reorganizing the Company so as to simplify its legal structure; and

    - using more local rather than expatriate employees in management, thereby
      reducing general and administrative costs.

    The Company has implemented a pricing strategy designed to increase revenue
per subscriber and thus its profit margin. For an additional monthly charge,
certain of the Company's cable networks in 2001 have offered two premium
television services--the HBO Poland Service and Wizja Sport (since March, 2001
Wizja Sport was expanded to basic package). In connection with the Canal+
merger, in February 2002, Canal+ Multiplex began to be distributed across the
Company's network. The Company, its parent and Telewizyjna Korporacja
Partycypacyjna S.A. ("TKP") are currently negotiating the definitive long-form
channel carriage agreement for distribution of Canal+ Multiplex. The Company
offers HBO Poland and Canal+ Multiplex for approximately $8.50 and $9.60 per
month, respectively. The Company also offers these channels as a package at
approximately $14.30 per month.

    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, equity in losses of
affiliated companies, income taxes, extraordinary items, non recurring items
(e.g. compensation expenses related to stock options), 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 profit and 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 $4.7 million for three months ended March 31, 2002 and negative EBIDTA
of $0.2 million for three months ended March 31, 2001.

CRITICAL ACCOUNTING POLICIES

    The discussion and analysis of the Company's financial condition and results
of operations are based upon the Company's consolidated financial statements,
which have been prepared in accordance with accounting principles generally
accepted in the United States. The preparation of these financial statements
requires us to make estimates and judgments that affect the reported amounts of
assets and liabilities, revenues and expenses, and related disclosure of
contingent assets and liabilities at the date of our financial statements.
Actual results may differ from these estimates under different assumptions or
conditions.

    Critical accounting policies are defined as those that are reflective of
significant judgments and uncertainties, which would potentially result in
materially different results under different assumptions and conditions. The
Company believes that its critical accounting policies are limited to those
described below. For a detailed discussion on the application of these and other
accounting policies, see Note 4 "Summary of Significant Accounting Policies" in
the notes to the unaudited consolidated financial statements.

IMPAIRMENT OF LONG-LIVED ASSETS

    The Company assesses the recoverability of long-lived assets (mainly
property, plant and equipment, intangibles, and certain other assets) by
determining whether the carrying value of the assets can be recovered over the
remaining lives through projected undiscounted future operating cash

                                       38
<Page>
flows, expected to be generated by such assets. If impairment in value is
estimated to have occurred, the assets carrying value is reduced to its
estimated fair value. The assessment of the recoverability of long-lived assets
will be impacted if estimated future operating cash flows are not achieved. As
identified in Note 3, the Company's existing liquidity problems may result in
future impairments of long-lived assets if the Company does not have adequate
financing available to execute its business strategy. Additionally, 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 impair certain of its long-lived assets. The Company is
currently in the process of adopting the New Accounting Standards discussed in
Note 5 to the Unaudited Financial Statements. As of the date of filing this
Form 10-Q, the Company has not completed its evaluation of the impact of
adopting these New Standards. However, management is aware that the adoption
could result in material adjustments to its long-lived assets and its statement
of operations during 2002.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

    The allowance for doubtful accounts is based upon the Company's assessment
of probable loss related to overdue accounts receivable. Upon disconnection of
the subscriber, the account is fully reserved. The allowance is maintained on
the books either until receipt of payment, or until the account is deemed
uncollectable for a maximum of three years.

REVENUE RECOGNITION

    Revenue related to the provision of cable television and internet services
to customers are recognized in the period in which the related services are
provided. Initial installation fees related to cable television services are
recognized as revenue in the period in which the installation occurs, to the
extent installation fees are equal to or less than direct selling costs, which
are expensed. To the extent installation fees exceed direct selling costs, the
excess fees are deferred and amortized over the average contract period. All
installation fees and related costs with respect to reconnections and
disconnections are recognized in the period in which the reconnection or
disconnection occurs because reconnection fees are charged at a level equal to
or less than related reconnection costs.

FOREIGN CURRENCIES

    Foreign currency transactions are recorded at the exchange rate prevailing
at the date of the transactions. Assets and liabilities denominated in foreign
currencies are translated at rates of exchange at balance sheet date. Gains and
losses on foreign currency transactions are included in the consolidated
statement of operations.

    The financial statements of foreign subsidiaries are translated to U.S.
dollars using (i) exchange rates in effect at period end for assets and
liabilities, and (ii) average exchange rates during the period for results of
operations. Adjustments resulting from translation of financial statements are
reflected in accumulated other comprehensive loss as a separate component of
stockholder's equity. The Company considers all of its intercompany loans to its
Polish subsidiaries to be of a long-term investment nature. As a result, any
foreign exchange gains or losses resulting from the intercompany loans are
reported in accumulated other comprehensive loss.

RESULTS OF OPERATIONS

    REVENUE.  Revenue increased $1.0 million or 5.3% from $18.7 million in the
three months ended March 31, 2001 to $19.7 million in the three months ended
March 31, 2002. This increase was primarily attributable to an increase in
monthly subscription rates for cable television service,

                                       39
<Page>
implemented in the second quarter 2001, set off in part by the depreciation of
the Polish zloty against the US dollar and a decrease in the number of basic
subscribers, and the increase in revenue from internet subscription from
$0.2 million for the three months ended March 31, 2001 to $0.9 million for the
three months ended March 31, 2002. In addition, during the three months ended
March 31, 2002, the Company obtained revenue of $0.9 million from certain call
center services, such as billing and subscriber support, provided to TKP.

    Revenue from monthly subscription fees represented 94.1% and 97.7% of cable
television revenue for the three months ended March 31, 2002 and 2001,
respectively. During the three months ended March 31, 2002, the Company
generated approximately $0.9 million of premium subscription revenue as a result
of providing the HBO Poland service pay movie channel and the Canal+ Multiplex
channel to cable subscribers as compared to $1.2 million for the three months
ended March 31, 2001, when HBO Poland and Wizja Sport were provided as premium
channels.

    DIRECT OPERATING EXPENSES.  Direct operating expenses decreased
$2.1 million, or 16.9%, from $12.4 million for the three months ended March 31,
2001 to $10.3 million for the three months ended March 31, 2002, principally as
a result of the decrease in programming expenses due to the discontinuation of
Wizja Jeden and Wizja Sport channels and a decrease in the number of
subscribers. Direct operating expenses decreased from 66.3% of revenues for the
three months ended March 31, 2001 to 52.3% of revenues for the three months
ended March 31, 2002.

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.  Selling, general and
administrative expenses decreased $1.8 million or 27.3% from $6.6 million for
the three months ended March 31, 2001 to $4.8 million for the three months ended
March 31, 2002. This decrease was attributable mainly to decrease in sales,
marketing and information technology related expenses as well as decrease in bad
debt expense (of approximately $0.8 million) and improved operating efficiency.

    As a percentage of revenue, selling, general and administrative expenses
decreased from 35.3% for the three months ended March 31, 2001 to approximately
24.4% for the three months ended March 31, 2002.

    DEPRECIATION AND AMORTIZATION.  Depreciation and amortization expense
decreased $6.0 million, or 45.8%, from $13.1 million for the three months ended
March 31, 2001 to $7.1 million for the three months ended March 31, 2002, as a
result of the non-amortization of goodwill, resulting from the application of
SFAS No 142. Depreciation and amortization expense as a percentage of revenues
decreased from 70.1% for the three months ended March 31, 2001 to 36.0% for the
three months ended March 31, 2002.

    INTEREST EXPENSE.  Interest expense amounted to $0.6 million for the three
months ended March 31, 2002 and 2001.

    INTEREST AND INVESTMENT INCOME.  The Company recorded $15,000 and $57,000 of
interest and investment income for the three months ended March 31, 2002 and
2001, respectively.

    FOREIGN EXCHANGE GAIN/LOSS, NET.  For the three months ended March 31, 2002,
foreign exchange loss amounted to $3.3 million as compared to a foreign exchange
gain of $1.0 million for the three months ended March 31, 2001. This change is
attributable to depreciation of the Polish zloty against the US dollar during
three months ended March 31, 2002 as compared to the Polish zloty appreciation
against the US dollar during the three months corresponding period ended
March 31, 2001.

    INCOME TAX EXPENSE.  The Company recorded $66,000 of income tax expense for
the three months ended March 31, 2002, as compared to $36,000 for the three
months ended March 31, 2001.

                                       40
<Page>
    NET LOSS.  For the three months ended March 31, 2002 and the three months
ended March 31, 2001, the Company had net losses of $6.4 million and
$13.1 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 $18.2 million for the three months ended March 31,
2001 to $12.0 million for the three months ended March 31, 2002 mainly as a
result of the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

    The Company has met its cash requirements in recent years primarily with
(i) capital contributions, debentures and preferred stock 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 positive
cash flows from operating activities of $2.2 million and $5.6 million for three
months ended March 31, 2002 and 2001, respectively, due to changes in amounts
due to affiliates.

    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 Debenture Stock for $140 million
to UPC Polska, and increases in paid in capital from UPC Polska.

    Pursuant to the indentures governing the 9 7/8% Senior Notes due 2003 of
Poland Communications, Inc. ("PCI Notes"), the Company is subject to certain
restrictions and covenants, including, without limitation, covenants with
respect to the following matters:

    a.  limitation on indebtedness;

    b.  limitation on restricted payments;

    c.  limitation on issuances and sales of capital stock of restricted
       subsidiaries;

    d.  limitation on transactions with affiliates;

    e.  limitation on liens;

    f.  limitation on guarantees of indebtedness by subsidiaries;

    g.  purchase of the notes upon a change of control;

    h.  limitation on sale of assets;

    i.  limitation on dividends and other payment restrictions affecting
       restricted subsidiaries;

    j.  limitation on investments in unrestricted subsidiaries;

    k.  consolidations, mergers, and sale of assets;

    l.  limitation on lines of business; and

    m. provision of financial statements and reports.

    The Company is in compliance with these covenants. However, as discussed
further in Note 3 to the Company's unaudited consolidated financial statements,
there is a risk that the Company could trigger an Event of Default (as defined
in the indentures) under its indentures by violating one or more of the
covenants set forth above during 2002. The Company has assessed this risk and
determined that an Event of Default is not "virtually certain" to occur.
Accordingly, the Company continues to reflect these notes as a long-term
liability.

    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

                                       41
<Page>
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
$251,711,000 and $249,765,000 at March 31, 2002 and December 31, 2001,
respectively.

    The indentures covering the PCI Notes provide that, following a Change of
Control (as defined therein), each noteholder had 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 UPC Polska
constituted a Change of Control. Accordingly, PCI made offers to repurchase (the
"Offers") from the holders of the PCI Notes. The Offers expired at 12:01 PM, New
York City time, on November 2, 1999.

    In accordance with the terms of the indentures governing the PCI Notes, the
Company was required to offer to repurchase the PCI Notes at the purchase price
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 has purchased $113,237,000 aggregate principal amount of PCI Notes
for an aggregate price of $114,369,370. UPC Polska purchased 14,000 shares of
Debenture Stock issued by the Company for $140 million to fund PCI's purchase of
PCI Notes and operations. The Debenture Stock is redeemable on December 31, 2003
at the issue price plus interest of 10% per annum compounded annually. To secure
its obligations under the Debenture Stock, the Company has pledged to UPC Polska
notes issued to it by the Company's subsidiary- PCBV with an aggregate principal
amount of $176,815,000. The Company's Noteholders will be equally and ratably
secured by the pledge in accordance with the terms of the PCI Indenture.

    UPC Polska financed Company's operating and investing activities by making
loans and increasing paid in capital, however there were no additional loans
and/or paid in capital from UPC Polska during the first quarter of 2002.

    On March 31, 2002, the Company had, on a consolidated basis, approximately
$78.8 million aggregate principal amount of indebtedness outstanding (including
trade payable to UPC Polska and its affiliates), of which $64.3 million was owed
to UPC Polska and its affiliates.

    The Company had positive cash flows from operating activities of
$2.2 million for the three months ended March 31, 2002 and $5.6 million for the
three months ended March 31, 2001, primarily due to the repayment of its
liabilities to an affiliate of UPC Polska.

    Cash used for the purchase and expansion of the Company's cable television
networks was $1.1 million and $9.0 million for three months ended March 31, 2002
and 2001, respectively.

    On March 31, 2002, the Company was committed to pay at least $134.3 million
in guaranteed payments (including but not limited to payments for programming
and rights) over the next sixteen years of which at least approximately
$19.0 million was committed through the end of 2002.

                                       42
<Page>
    The following table presents the Company's minimum future commitments under
its programming and lease contracts.

<Table>
<Caption>
                                                                                               2007 AND
                                         2002       2003       2004       2005       2006     THEREAFTER    TOTAL
                                       --------   --------   --------   --------   --------   ----------   --------
                                                                      (IN THOUSANDS)
<S>                                    <C>        <C>        <C>        <C>        <C>        <C>          <C>
Building.............................  $ 1,224    $ 1,208    $ 1,191    $ 1,187     $  475      $    --    $  5,285
Conduit..............................      875         45         --         --         --           --         920
Programming..........................   16,748     19,906     16,105     12,589      6,064       56,507     127,919
Other................................      135         --         --         --         --           --         135
Headend..............................       28          1         --         --         --           --          29
                                       -------    -------    -------    -------     ------      -------    --------
TOTAL................................  $19,010    $21,160    $17,296    $13,776     $6,539      $56,507    $134,288
                                       =======    =======    =======    =======     ======      =======    ========
</Table>

    As of March 31, 2002, the Company had negative working capital. In addition
to its contractual commitments described in the table above, the Company has
repayment obligations in November 2003 related to the PCI Notes of approximately
$14.5 million in principal amount, plus interest, redemption obligations in
December 2003 of approximately $140 million, plus interest, related to the
Mandatorily Redeemable Debenture Stock, and repayment obligations beginning in
2003 of approximately $9.9 million, including interest, related to its currently
outstanding indebtedness owed to UPC Polska. The Company has trade payables of
$54.4 million currently due to UPC Polska and its affiliates. The Company has in
the past relied on UPC Polska to help meet its obligations. UPC Polska has in
the past relied on its parent, UPC, and UPC's affiliates to meet its
obligations. As a result of UPC's decision to not make interest payments on its
senior notes and senior discount notes on February 1, 2002, and May 1, 2002, and
its failure to make the interest payment upon the expiration of the applicable
30-day grace period, these actions constituted Events of Default pursuant to
UPC's senior notes and senior discount notes. The occurrence of these Events of
Default gave the related trustees under the indebtedness, or requisite number of
holders of such notes, the right to accelerate the maturity of all of UPC's
senior notes and senior discount notes and then to foreclose on the collateral
securing these notes. As of the date of the filing of this Quarterly Report on
Form 10-Q, neither any of the trustees for the respective notes nor the
requisite number of holders of those notes have accelerated the payment of
principal and interest under these notes. UPC has entered into a non-binding
Memorandum of Understanding with UnitedGlobalCom, Inc., UPC's parent, to enter
into negotiations with the holders of UPC's senior notes and senior discount
notes to attempt to reach agreement on a means to restructure UPC's indebtedness
at the holding company level. In addition, UPC has received waivers from the
lenders under its and its subsidiaries' bank facilities for the cross Events of
Default under such facilities that existed or may exist as a result of UPC's
failure to make the interest payments due on February 1, 2002 and May 1, 2002 on
UPC's outstanding senior notes within the applicable grace periods. Although the
Company had anticipated being able to rely on UPC Polska, which is relaying on
UPC, to meet its payment obligations, given UPC's and UPC Polska's liquidity
concerns, the Company is not certain that it will receive the necessary
financing from UPC Polska. If the Company is unable to rely on UPC Polska (and,
indirectly, UPC itself) for financial support, the Company will have to meet its
obligations with cash on hand and with funds obtained from public or private
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 UnitedGlobalCom, Inc., UPC's parent. The Company's
cash on hand will be insufficient to satisfy all of its obligations and the
Company cannot be certain that it will be able to obtain the necessary financing
at all, or on terms that will be favorable to the Company. 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

                                       43
<Page>
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.

NEW ACCOUNTING STANDARDS

ADOPTED

    In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 141, "Business Combinations,"
("SFAS 141"), which is required to be adopted July 1, 2001. SFAS 141 requires
the purchase method of accounting for all business combinations initiated after
June 30, 2001. The Company has applied SFAS 141 to its only applicable
transaction, the purchase of the minority interest in PCBV in August 28, 2001.

    In July 2001, the Financial Accounting Standards Board issued SFAS No. 142,
"Goodwill and Other Intangible Assets" ("SFAS 142"), which requires goodwill and
intangible assets with indefinite useful lives to no longer be amortized, but to
be tested for impairment at least annually. Intangible assets that have finite
lives will continue to be amortized over their estimated useful lives. The
amortization and non-amortization provisions of SFAS 142 will be applied to all
goodwill and intangible assets acquired after June 30, 2001. Effective
January 1, 2002, the Company was required to apply all other provisions of
SFAS 142. As of January 1, 2002, the Company ceased the amortization on its
goodwill. Accordingly, the consolidated statement of operations for the three
months ended March 31, 2002 does not include any such amortization expense. For
the three months ended March 31, 2001, the consolidated statement of operations
included amortization expense of approximately $6.6 million. The Company is
currently evaluating the additional impact, if any, the adoption of SFAS 142
will have on the Company's financial position and results of operations.

TO BE ADOPTED

    In August 2001, the Financial Accounting Standards Board issued SFAS
No. 143, "Accounting for Asset Retirement Obligations", ("SFAS 143"). This
statement addresses the financial accounting and reporting for obligations
associated with the retirement of tangible long-lived assets and the associated
asset retirement costs. SFAS No. 143 requires that the fair value of a liability
for an asset retirement obligation be recognized in the period in which it is
incurred if a reasonable estimate of fair value can be made. The associated
asset retirement costs are capitalized as part of the carrying amount of the
long-lived asset and reported as a liability. This statement is effective for
fiscal years beginning after June 15, 2002. The adoption of SFAS No. 143 is not
anticipated to have a material impact on Company's financial position or results
of operations.

    In August 2001, the Financial Accounting Standards Board issued SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets",
("SFAS 144"), which is effective for fiscal periods beginning after
December 15, 2001 and interim periods within those fiscal years. SFAS 144
establishes an accounting model for impairment or disposal of long-lived assets
to be disposed. The Company is currently evaluating the potential impact, if
any, the adoption of SFAS 144 will have on Company's financial position and
results of operation. The Company expects it will have SFAS 144 evaluation
completed during the fourth quarter of 2002. At this point, management is aware
that the adoption of SFAS 144 could result in material adjustments to its
long-lived assets and its statement of operations during 2002.

ITEM 3. 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

                                       44
<Page>
therefore the Company is neither materially benefited nor materially
disadvantaged by variations in interest rates. The Company's major programming
commitments are denominated in the US dollars or Euros. The Company revenues
from subscribers are in the Polish zloty.

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 three months ended March 31, 2002. Some of the Company's
operating expenses and capital expenditures are expected to continue to be
denominated in or indexed in U.S. dollars and Euros. By contrast, substantially
all of the Company's revenues are denominated in zloty. 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 a 10% change in foreign exchange rates would
impact reported operating loss by approximately $0.2 million. In other terms, a
10% depreciation of the Polish zloty against the U.S. dollar, would result in a
$0.2 million increase 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.

    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.

    Poland has historically experienced high levels of inflation and significant
fluctuations in the exchange rate for the zloty, but since 1999 the inflation
has slowed. Inflation rates were approximately 7.3% in 1999, approximately 10.1%
in 2000 and approximately 5.5% in 2001. The rate of inflation for the three
month period ended March 31, 2002 was approximately 3.4%. The exchange rate for
the Polish zloty has stabilized and the rate of evaluation of the zloty has
generally decreased since 1991. For the year ended December 31, 2000 and 2001,
the Polish zloty has appreciated against the U.S. dollar by approximately 0.12%
and 3.80%, respectively. For the period of three months ended March 31, 2002,
the Polish zloty has depreciated against the U.S. dollar by approximately 3.66%.

                                       45
<Page>
Inflation and currency exchange fluctuations may have, a material adverse effect
on the business, financial condition and results of operations of the Company.

<Table>
<Caption>
                                                                                    EXPECTED FISCAL YEAR FOR
                                        AMOUNT OUTSTANDING                          REPAYMENT AS OF MARCH 31,
                                       AS OF MARCH 31, 2002     -----------------------------------------------------------------
                                      -----------------------                                                           2007 AND
                                      BOOK VALUE   FAIR VALUE     2002       2003       2004       2005       2006     THEREAFTER
                                      ----------   ----------   --------   --------   --------   --------   --------   ----------
                                                                            (IN THOUSANDS)
<S>                                   <C>          <C>          <C>        <C>        <C>        <C>        <C>        <C>
PCI Notes, net of discount..........   $14,509      $14,509       $ --     $14,509      $ --       $ --       $ --        $ --
Bank Rozwoju Exportu S.A. Euro
  facility..........................       302          302        302          --        --         --         --          --
                                       -------      -------       ----     -------      ----       ----       ----        ----
  Total.............................   $14,811      $14,811       $302     $14,509      $ --       $ --       $ --        $ --
                                       =======      =======       ====     =======      ====       ====       ====        ====
</Table>

                                       46
<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, such litigation in which the Company
is currently involved, individually and in the aggregate, is not material to the
Company's financial condition or results of operations. See also Note 9 to the
Company's unaudited consolidated financial statements for a description of the
proceeding relating to HBO Polska.

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) Exhibit Listing

    (i) Restated Certificate of Incorporation of Poland Communications, Inc.,
        dated March 8, 2002 (incorporated by reference to PCI's Form 10-K, filed
        on April 4, 2002).

    (ii) By-Laws of PCI as amended through March 1998 (incorporated by reference
         to PCI's Form 10-K, filed March 30, 1999).

(b) Reports on Form 8-K

    The Company did not file any Reports on Form 8-K during the three months
ended March 31, 2002.

                                       47
<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.

                                    POLAND COMMUNICATIONS, INC.

                                    By:  /s/ SIMON BOYD
                                        ----------------------------------------
                                        Simon Boyd
                                        President and Chief Executive Officer

Date: May 15, 2002

                                       48