<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 SEPTEMBER 30, 2001.

                                       OR

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

                        COMMISSION FILE NUMBER 333-20307

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

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

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

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

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

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

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

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

<Table>
<Caption>
                                                                             PAGE NO.
PART I FINANCIAL INFORMATION                                                 --------
<S>   <C>      <C>                                                           <C>
      Item 1.  Consolidated Financial Statements...........................      3
               Poland Communications, Inc.
               Consolidated Balance Sheets.................................      3
               Consolidated Statements of Operations.......................      4
               Consolidated Statements of Comprehensive Loss...............      5
               Consolidated Statements of Cash Flows.......................      6
               Notes to Consolidated Financial Statements..................      7

               Poland Cablevision (Netherlands) B.V

               Consolidated Balance Sheets.................................     14
               Consolidated Statements of Operations.......................     15
               Consolidated Statements of Comprehensive Loss...............     16
               Consolidated Statements of Cash Flows.......................     17
               Notes to Consolidated Financial Statements..................     18

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

      Item 3.  Quantitative and Qualitative Disclosures About Market
               Risk........................................................     32

PART II OTHER INFORMATION

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

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

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

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

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

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

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

<Table>
<Caption>
                                                              SEPTEMBER 30,   DECEMBER 31,
                                                                  2001            2000
                                                              -------------   ------------
                                                               (UNAUDITED)
                                                                     (IN THOUSANDS)
<S>                                                           <C>             <C>
                                          ASSETS
Current assets:
  Cash and cash equivalents.................................    $  2,885        $  1,442
  Trade accounts receivable, net of allowance for doubtful
    accounts of $8,143 in 2001 and $4,937 in 2000...........       6,581           8,968
  VAT recoverable...........................................          --             241
  Prepayments...............................................         664             510
  Other current assets......................................          42             192
                                                                --------        --------
    Total current assets....................................      10,172          11,353
                                                                --------        --------

Property, plant and equipment:
  Cable television systems assets...........................     156,619         151,417
  Construction in progress..................................       3,961           6,179
  Vehicles..................................................         965             707
  Other.....................................................      11,089          12,109
                                                                --------        --------
                                                                 172,634         170,412

  Less accumulated depreciation.............................     (43,728)        (28,147)
                                                                --------        --------
    Net property, plant and equipment.......................     128,906         142,265

Inventories for construction................................       5,033           5,686
Intangibles, net............................................     354,011         359,568
                                                                --------        --------

    Total assets............................................    $498,122        $518,872
                                                                ========        ========

                           LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
  Accounts payable and accrued expenses.....................    $ 12,646        $ 28,343
  Accrued interest..........................................         595             236
  Deferred revenue..........................................       2,501           2,182
  VAT Payable...............................................       1,491              --
  Due to affiliates and parent..............................      71,918          38,316
                                                                --------        --------
    Total current liabilities...............................      89,151          69,077
                                                                --------        --------

Long-term liabilities:
  Notes payable and other payables to parent................      23,650          23,269
  Notes payable.............................................      15,025          15,344
                                                                --------        --------
    Total liabilities.......................................     127,826         107,690
                                                                --------        --------

Redeemable preferred stock (liquidation value $60,000,000;
  6,000 shares authorized, issued and outstanding)..........      42,305          38,858
Mandatorily Redeemable Debenture Stock, 30,000 shares
  authorized; 14,000 shares issued and outstanding
  (including accrued dividend)..............................     168,309         156,566

Commitments and contingencies (note 7)

Stockholder's equity:
  Common stock, $.01 par value; 27,000 shares authorized,
    18,948 shares issued and outstanding....................           1               1
  Paid-in capital...........................................     326,369         332,579
  Accumulated other comprehensive loss......................     (45,371)        (37,182)
  Accumulated deficit.......................................    (121,317)        (79,640)
                                                                --------        --------
    Total stockholder's equity..............................     159,682         215,758
                                                                --------        --------

    Total liabilities and stockholder's equity..............    $498,122        $518,872
                                                                ========        ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       3
<Page>
                          POLAND COMMUNICATIONS, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<Table>
<Caption>
                                                   THREE MONTHS ENDED         NINE MONTHS ENDED
                                                      SEPTEMBER 30,             SEPTEMBER 30,
                                                 -----------------------   -----------------------
                                                    2001         2000         2001         2000
                                                 ----------   ----------   ----------   ----------
                                                       (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                              <C>          <C>          <C>          <C>
Cable television revenue.......................  $   18,600   $   17,094   $   57,514   $   51,124

Operating expenses:
  Direct operating expenses charged by third
    parties....................................       6,121        5,921       18,770       16,495
  Direct operating expenses charged by
    affiliates.................................       5,686        5,171       18,105       14,486
  Selling, general and administrative
    expenses...................................       6,863        5,846       18,590       18,557
  Depreciation and amortization................      12,558       11,389       39,922       33,980
                                                 ----------   ----------   ----------   ----------
Total operating expenses.......................      31,228       28,327       95,387       83,518
                                                 ----------   ----------   ----------   ----------

  Operating loss...............................     (12,628)     (11,233)     (37,873)     (32,394)

Interest income................................          61           66          223          171
Interest expense...............................        (607)        (602)      (1,805)      (1,900)
Non operating expense..........................          --           --         (205)          --
Foreign exchange loss..........................      (5,057)      (2,800)      (1,855)      (7,910)
                                                 ----------   ----------   ----------   ----------

  Loss before income taxes.....................     (18,231)     (14,569)     (41,515)     (42,033)

Income tax expense.............................         (79)         (44)        (162)         (84)
                                                 ----------   ----------   ----------   ----------

  Net loss.....................................     (18,310)     (14,613)     (41,677)     (42,117)

  Accretion of redeemable preferred stock......      (1,181)      (1,055)      (3,447)      (3,078)
  Accrued dividend on Mandatorily Redeemable
    Debenture Stock............................      (3,914)      (3,500)     (11,743)     (10,500)

Net loss applicable to holders of common
  stock........................................  $  (23,405)  $  (19,168)  $  (56,867)  $  (55,695)
                                                 ==========   ==========   ==========   ==========

Basic loss per common share....................  $(1,235.22)  $(1,011.61)  $(3,001.21)  $(2,939.36)
                                                 ==========   ==========   ==========   ==========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

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

<Table>
<Caption>
                                                       THREE MONTHS ENDED     NINE MONTHS ENDED
                                                          SEPTEMBER 30,         SEPTEMBER 30,
                                                       -------------------   -------------------
                                                         2001       2000       2001       2000
                                                       --------   --------   --------   --------
                                                                    (IN THOUSANDS)
<S>                                                    <C>        <C>        <C>        <C>
Net loss.............................................  $(18,310)  $(14,613)  $(41,677)  $(42,117)
Other comprehensive loss:
Translation adjustment...............................   (25,038)   (13,983)    (8,189)   (37,478)
                                                       --------   --------   --------   --------
Comprehensive loss...................................  $(43,348)  $(28,596)  $(49,866)  $(79,595)
                                                       ========   ========   ========   ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       5
<Page>
                          POLAND COMMUNICATIONS, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<Table>
<Caption>
                                                              NINE MONTHS ENDED    NINE MONTHS ENDED
                                                              SEPTEMBER 30, 2001   SEPTEMBER 30, 2000
                                                              ------------------   ------------------
                                                                          (IN THOUSANDS)
<S>                                                           <C>                  <C>
Cash flows from operating activities:
  Net loss..................................................       $(41,677)            $(42,117)
  Adjustments to reconcile net loss to net cash provided by
    operating activities:
      Depreciation and amortization.........................         39,922               33,980
      Unrealized foreign exchange loss......................          1,972                6,874
      Changes in operating assets and liabilities:
        Accounts receivable.................................          2,189               (1,714)
        Other current assets................................            750               (1,338)
        Accounts payable....................................        (13,675)              (4,429)
        Accrued interest....................................            404                  348
        Amounts due to affiliates and parent................          3,789                7,926
        Deferred revenue....................................            508                1,475
        Other...............................................            336                   --
                                                                   --------             --------
          Net cash (used in)/provided by operating
            activities......................................         (5,482)               1,005
                                                                   --------             --------
Cash flows from investing activities:
  Construction and purchase of property, plant and
    equipment...............................................         (9,026)             (16,672)
  Purchase of intangibles...................................           (195)              (1,333)
                                                                   --------             --------
          Net cash used in investing activities.............         (9,221)             (18,005)
                                                                   --------             --------
Cash flows from financing activities:
  Proceeds from parent......................................         16,609               13,691
  Repayment of notes payable................................           (346)                (840)
  Capital increase..........................................             --                3,860
                                                                   --------             --------
          Net cash provided by financing activities.........         16,263               16,711
                                                                   --------             --------

          Net increase/ (decrease) in cash and cash
            equivalents.....................................          1,560                 (289)

Effect of exchange rates on cash and cash equivalents.......           (117)                (130)

Cash and cash equivalents at beginning of period............          1,442                3,374
                                                                   --------             --------
Cash and cash equivalents at end of period..................       $  2,885             $  2,955
                                                                   ========             ========

Supplemental cash flow information:
  Cash paid for interest....................................       $    762             $    895
                                                                   ========             ========
  Cash paid for income taxes................................       $     85             $     97
                                                                   ========             ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       6
<Page>
                          POLAND COMMUNICATIONS, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                          SEPTEMBER 30, 2001 AND 2000

1.  BASIS OF PRESENTATION

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

2.  CONSUMMATION OF UPC TENDER OFFER AND MERGER

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

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

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

    The Acquisition was accounted for under the purchase method of accounting,
with all of the purchase accounting adjustments "pushed-down" to the
consolidated financial statements of UPC Polska. Accordingly, the purchase price
was allocated to the underlying assets and liabilities based upon their
estimated fair values and any excess to goodwill. UPC Polska restated some of
its assets and liabilities on August 5, 1999. At this date, the Notes of UPC
Polska and PCI were restated to reflect the market value and as a result were
increased by $61.9 million and deferred financing costs of $16.1 million and
deferred revenues of $2.0 million were written down to zero. The consideration
paid by UPC for all outstanding shares, warrants and options totaled
$812.5 million. At this time UPC Polska had negative net assets of approximately
$53.3 million and existing goodwill at net book value of

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

                          SEPTEMBER 30, 2001 AND 2000

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

3.  FINANCIAL POSITION AND BASIS OF ACCOUNTING

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

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

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

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

                          SEPTEMBER 30, 2001 AND 2000

alternatives, including the merger of legal entities and the conversion of
intercompany debt into equity, in order to resolve these deficiencies.

4.  IMPACT OF NEW ACCOUNTING STANDARDS ADOPTION

ADOPTED:

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

TO BE ADOPTED:

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

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

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

    In August 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 144, "ACCOUNTING FOR
THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS". SFAS No. 144 establishes a
single accounting model for long-lived assets to be disposed of by sale
consistent with the fundamental provisions of SFAS 121 "ACCOUNTING FOR THE
IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS TO BE DISPOSED OF".
Whilst it supersedes APB Opinion 30 "Reporting the Results of
operations--Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and

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

                          SEPTEMBER 30, 2001 AND 2000

Transactions" it retains the presentation of discontinued operations but
broadens that presentation to include a component of an entity (rather than a
segment of a business). However, discontinued operations are no longer recorded
at net realizable value and future operating losses are no longer recognized
before they occur. Under SFAS No. 144 there is no longer a requirement to
allocate goodwill to long-lived assets to be tested for impairment. It also
establishes a probability weighted cash flow estimation approach to deal with
situations in which there are a range of cash flows that may be generated by the
asset being tested for impairment. SFAS No. 144 also establishes criteria for
determining when an asset should be treated as held for sale.

    SFAS No. 144 is effective for fiscal years beginning after December 15, 2001
and interim periods within those fiscal years, with early application
encouraged. The provisions of the Statement are generally to be applied
prospectively. The Company, does not anticipate that adoption of SFAS No. 144
will have a material impact on its results of operations or its financial
position.

5.  RECLASSIFICATIONS

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

6.  LOSS PER SHARE

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

7.  COMMITMENTS AND CONTINGENCIES

BUILDING LEASE

    The Company leases several offices and warehouses within Poland under
cancelable operating lease terms. Minimum future lease commitments for the
aforementioned building leases relate to 2001 and 2002 only. The future minimum
lease commitments related to these building leases approximates $168,000 in 2001
and $68,000 in 2002 as of September 30, 2001.

CAR LEASES

    The Company has operating car leases with various leasing companies in
Poland. Minimum future lease commitments for the aforementioned car leases as of
September 30, 2001 are $100,000 in 2001, $348,000 in 2002 and $7,000 in 2003.

CONDUIT LEASES

    The Company also leases space within various telephone duct systems from the
Polish national telephone company (known in the Polish telecommunication
industry as "TPSA") under cancelable operating leases. The TPSA leases expire at
various times, and a substantial portion of the Company's contracts with TPSA
permit termination by TPSA without penalty at any time either immediately upon
the occurrence of certain conditions or upon provision of three to nine months
notice without cause. All of the agreements provide that TPSA is the manager of
the telephone duct system and will lease space within the ducts to the Company
for installation of cable and equipment for the cable television systems. Some
conduit agreements with TPSA provide that cables can be installed in the conduit
only

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

                          SEPTEMBER 30, 2001 AND 2000

for the use of the cable television. If the Company uses the cables for a
purpose other than cable television, such as data transmission, telephone, or
Internet access, such use could be considered a violation of the terms of
certain conduit agreements, unless this use is expressly authorized by TPSA.
There is no guarantee that TPSA would give its approval to permit other uses of
the conduits. The Company has introduced Internet services to certain of its
customers, and is in the process of renegotiating certain conduit agreements
with TPSA. The lease agreements provide for monthly lease payments that are
adjusted quarterly or annually, except for the Gdansk lease agreement, which
provides for an annual adjustment after the ninth year and then remains fixed
through the tenth year of the lease. Minimum future lease commitments for the
aforementioned conduit leases relate to 2001 and 2002 only, as all leases are
cancelable in accordance with the aforementioned terms. The future minimum lease
commitments related to these conduit leases approximates $462,000 in 2001,
$172,000 in 2002 and $1,000 in 2003 as of September 30, 2001.

PROGRAMMING COMMITMENTS

    The Company has entered into long-term programming agreements and agreements
for the purchase of certain exhibition or broadcast rights with a number of
third party and affiliated content providers for its cable systems. The
agreements have terms which range from one to five years and require that the
license fees be paid either at a fixed amount payable at the time of execution
or based upon a guaranteed minimum number of subscribers connected to the system
each month. In connection with the Canal+ transaction, management is currently
in discussions with some of the programming providers to re-negotiate key terms
of the contracts and the commitments may change substantially. At September 30,
2001, the Company had an aggregate minimum commitment in relation to these
agreements of approximately $72,523,000 over the next nine years, approximating
$7,089,000 in 2001, $26,094,000 in 2002, $19,845,000 in 2003, $12,224,000 in
2004 and $7,271,000 in 2005 and thereafter.

REGULATORY APPROVALS

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

LITIGATION AND CLAIMS

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

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

                          SEPTEMBER 30, 2001 AND 2000

PROCEEDING RELATING TO HBO POLSKA

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

DIVIDEND RESTRICTIONS

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

PCBV MINORITY STOCKHOLDER'S CLAIM

    On or about July 8, 1999, certain minority shareholders ("the minority
shareholders") of the Company's subsidiary Poland Cablevision (Netherlands) B.V.
("PCBV"), filed a lawsuit against PCI and certain other defendants, in United
States District Court, Southern District of Ohio, Eastern Division, Civil Action
No. C2-99-621. The relief sought by the minority shareholders includes:
(1) unspecified damages in excess of $75,000, (2) an order lifting the
restrictions against transfer of shares set forth in the Shareholders' Agreement
among PCBV's shareholders, as amended (the "Shareholders' Agreement") so that
the minority shareholders can liquidate their shares in PCBV, (3) damages in the
amount of 1.7 percent of the payment made by UPC for the shares of the Company
as set forth in the Agreement and Plan of Merger between UPC Polska and UPC
dated June 2, 1999, and (4) attorneys' fees and costs incurred in prosecuting
the lawsuit.

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

    On or about March 31, 2000 the parties to the lawsuit reached a settlement.
In accordance with the settlement, on June 2, 2000, Wizja TV B.V., an affiliate
of Company's Parent, purchased

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

                          SEPTEMBER 30, 2001 AND 2000

approximately 1.4% of the outstanding shares of PCBV for a price of
approximately $2.2 million. The case has been dismissed and releases exchanged.

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

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

    The claims by the Reece Group consist of allegations previously made by
Reece Communications, Inc. ("RCI"). RCI's allegations were premised on, among
other things, alleged acts, errors, omissions, misstatements, misleading
statements or breaches of duty by the aforementioned officers, directors, or
controlling shareholders. UPC Polska has negotiated a settlement of those claims
and a simultaneous purchase of the Reece Group's PCBV shares, as well as the
purchase of all other shares of PCBV held by other minority shareholders and a
settlement of their claims. On August 28, 2001, in exchange for the release of
claims and the transfer of all outstanding shares in PCBV held by minority
shareholders, UPC Polska and/or its affiliates paid in the aggregate
approximately $3.6 million in cash at closing and issue promissory notes for
$17 million, which promissory notes accrue interest at 7% per annum and are
payable in increments over a period of 36 months in cash or UPC common stock at
the payer's election.

    The Company has accounted for the $21.2 million as goodwill in the
accompanying consolidated financial statements in accordance with SFAS 141.
Accordingly there has been no amortization recorded associated with this
goodwill.

8.  CAPITAL CONTRIBUTIONS

    During the three and nine month period ended September 30, 2001 $0 and
$17,780,000, respectively of liability to the Company's parent was converted
into paid-in capital.

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

<Table>
<Caption>
                                                              SEPTEMBER 30,   DECEMBER 31,
                                                                  2001            2000
                                                              -------------   ------------
                                                               (UNAUDITED)
                                                                     (IN THOUSANDS)
<S>                                                           <C>             <C>
                                          ASSETS
Current assets:
  Cash and cash equivalents.................................    $   1,934       $  1,159
  Trade accounts receivable, net of allowances of $8,044 in
    2001 and
    $4,392 in 2000..........................................        6,010          8,549
  VAT recoverable...........................................           45            295
  Prepayments...............................................          606            510
  Due from affiliates.......................................          347             --
  Other current assets......................................           --            159
                                                                ---------       --------
    Total current assets....................................        8,942         10,672
                                                                ---------       --------

Property, plant and equipment:
  Cable television system assets............................      123,066        117,307
  Construction in progress..................................        3,841          6,050
  Vehicles..................................................          759            473
  Other.....................................................       10,952         11,967
                                                                ---------       --------
                                                                  138,618        135,797

    Less accumulated depreciation...........................      (34,961)       (22,412)
                                                                ---------       --------
    Net property, plant and equipment.......................      103,657        113,385

Inventories for construction................................        4,857          5,400
Intangible assets, net......................................      311,158        315,923
                                                                ---------       --------

    Total assets............................................    $ 428,614       $445,380
                                                                =========       ========

                           LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses.....................    $  10,953       $ 26,359
  Deferred revenue..........................................        2,358          2,182
  VAT Payable...............................................        1,454             --
  Due to affiliate..........................................       32,748         22,864
                                                                ---------       --------
    Total current liabilities...............................       47,513         51,405
                                                                ---------       --------

Long term liabilities:
  Notes payable and other payables to PCI...................      271,148        248,524
                                                                ---------       --------
    Total liabilities.......................................      318,661        299,929
                                                                ---------       --------

Commitments and contingencies (note 7)

Minority interest...........................................          232            281

Stockholders' equity:
  Capital stock par value, $0.50 par; 200,000 shares
    authorized,
    issued and outstanding..................................          100            100
  Paid-in capital...........................................      288,783        267,564
  Accumulated other comprehensive loss......................      (40,366)       (33,077)
  Accumulated deficit.......................................     (138,796)       (89,417)
                                                                ---------       --------
    Total stockholders' equity..............................      109,721        145,170
                                                                ---------       --------

    Total liabilities and stockholders' equity..............    $ 428,614       $445,380
                                                                =========       ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       14
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<Table>
<Caption>
                                                       THREE MONTHS ENDED     NINE MONTHS ENDED
                                                          SEPTEMBER 30,         SEPTEMBER 30,
                                                       -------------------   -------------------
                                                         2001       2000       2001       2000
                                                       --------   --------   --------   --------
                                                         (IN THOUSANDS)        (IN THOUSANDS)
<S>                                                    <C>        <C>        <C>        <C>
Cable television revenue.............................  $ 17,546   $ 16,152   $ 54,291   $ 48,261

Operating expenses:
  Direct operating expenses charged by third
    parties..........................................     5,833      5,704     17,848     18,207
  Direct operating expenses charged by affiliates....     6,373      5,995     19,932     16,445
  Selling, general and administrative expenses.......     6,770      5,186     17,526     12,975
  Depreciation and amortization......................    10,855      9,806     34,544     30,288
                                                       --------   --------   --------   --------
    Total operating expenses.........................    29,831     26,691     89,850     77,915
                                                       --------   --------   --------   --------

    Operating loss...................................   (12,285)   (10,539)   (35,559)   (29,654)

Interest income......................................        60         62        220        167
Interest expense.....................................    (4,202)    (3,901)   (12,554)   (11,202)
Foreign exchange loss................................    (3,920)    (1,840)    (1,424)    (6,519)
                                                       --------   --------   --------   --------

  Loss before income taxes...........................   (20,347)   (16,218)   (49,317)   (47,208)

Minority interest in subsidiary loss.................        70         --         49         --
Income tax expense...................................       (58)       (42)      (111)       (66)

  Net loss...........................................  $(20,335)  $(16,260)  $(49,379)  $(47,274)
                                                       ========   ========   ========   ========

  Basic net loss per common share....................  $(101.68)  $ (81.30)  $(246.90)  $(236.37)
                                                       ========   ========   ========   ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

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

<Table>
<Caption>
                                                       THREE MONTHS ENDED     NINE MONTHS ENDED
                                                          SEPTEMBER 30,         SEPTEMBER 30,
                                                       -------------------   -------------------
                                                         2001       2000       2001       2000
                                                       --------   --------   --------   --------
                                                                    (IN THOUSANDS)
<S>                                                    <C>        <C>        <C>        <C>
Net loss.............................................  $(20,335)  $(16,260)  $(49,379)  $(47,274)

Other comprehensive loss:
  Cumulative translation adjustment..................   (22,178)   (12,620)    (7,289)   (33,255)
                                                       --------   --------   --------   --------

Comprehensive loss...................................  $(42,513)  $(28,880)  $(56,668)  $(80,529)
                                                       ========   ========   ========   ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

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

<Table>
<Caption>
                                                              NINE MONTHS ENDED    NINE MONTHS ENDED
                                                              SEPTEMBER 30, 2001   SEPTEMBER 30, 2000
                                                              ------------------   ------------------
                                                                          (IN THOUSANDS)
<S>                                                           <C>                  <C>
Cash flows from operating activities:
  Net loss..................................................       $(49,379)            $(47,274)
  Adjustments to reconcile net loss to net cash provided by
    operating activities:
      Minority interest.....................................            (49)                  --
      Depreciation and amortization.........................         34,544               30,288
      Interest expense added to notes payable to PCI........         11,915               11,131
      Unrealized foreign exchange loss......................          1,585                4,647
      Other.................................................            292                   --
      Changes in operating assets and liabilities:
        Accounts receivable.................................          2,350               (1,748)
        Other current assets................................            722               (1,678)
        Accounts payable....................................        (13,128)              (1,059)
        Deferred revenue....................................            224                1,457
        Amounts due from affiliates.........................           (347)                  --
        Amounts due to affiliates and parent................          4,136                5,019
                                                                   --------             --------
          Net cash provided by operating activities.........         (7,135)                 783
                                                                   --------             --------

Cash flows from investing activities:
  Construction and purchase of property, plant and
    equipment...............................................         (8,851)             (17,776)
  Purchase of intangible assets.............................           (176)              (1,181)
                                                                   --------             --------
          Net cash used in investing activities.............         (9,027)             (18,957)
                                                                   --------             --------

Cash flows from financing activities:
  Proceeds from PCI.........................................         16,962               18,088
                                                                   --------             --------
          Net cash provided by financing activities.........         16,962               18,088
                                                                   --------             --------
          Net increase/(decrease) in cash...................            800                  (86)

Effect of exchange rates on cash and cash equivalents.......            (25)                (109)
Cash and cash equivalents at beginning of the period........          1,159                2,838
                                                                   --------             --------
Cash and cash equivalents at end of the period..............       $  1,934             $  2,643
                                                                   ========             ========

Supplemental cash flow information:
  Cash paid for interest....................................       $     42             $    730
                                                                   ========             ========
  Cash paid for income taxes................................       $     35             $     62
                                                                   ========             ========
</Table>

     See accompanying notes to unaudited consolidated financial statements.

                                       17
<Page>
                     POLAND CABLEVISION (NETHERLANDS) B.V.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                          SEPTEMBER 30, 2001 AND 2000

1.  BASIS OF PRESENTATION

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

2.  CONSUMMATION OF UPC TENDER OFFER AND MERGER

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

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

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

    The Acquisition was accounted for under the purchase method of accounting,
with all of the purchase accounting adjustments "pushed-down" to the
consolidated financial statements of UPC Polska. Accordingly, the purchase price
was allocated to the underlying assets and liabilities based upon their
estimated fair values and any excess to goodwill. UPC Polska restated some of
its assets and liabilities on August 5, 1999. At this date, the Notes of UPC
Polska and PCI were restated to reflect the market value and as a result were
increased by $61.9 million and deferred financing costs of $16.1 million and
deferred revenues of $2.0 million were written down to zero. The consideration
paid by UPC for all shares outstanding, warrants and options totaled
$812.5 million. At that time UPC Polska had negative net assets of approximately
$53.3 million and existing goodwill at net book value of

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

                          SEPTEMBER 30, 2001 AND 2000

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

3.  FINANCIAL POSITION AND BASIS OF ACCOUNTING

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

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

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

    Several of the PCBV's Polish subsidiaries have statutory shareholders'
equity less than the legally prescribed limits because of accumulated losses. As
required by Polish law, the management of these companies will have to make
decisions on how to increase the shareholders' equity to be in compliance

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

                          SEPTEMBER 30, 2001 AND 2000

with the Polish Commercial Code. PCBV is currently considering several
alternatives, including the conversion of intercompany debt into equity, in
order to resolve these deficiencies.

4.  IMPACT OF NEW ACCOUNTING STANDARDS ADOPTION

ADOPTED:

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

TO BE ADOPTED:

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

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

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

    In August 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 144, "ACCOUNTING FOR
THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS". SFAS No. 144 establishes a
single accounting model for long-lived assets to be disposed of by sale
consistent with the fundamental provisions of SFAS 121 "ACCOUNTING FOR THE
IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS TO BE DISPOSED OF".
Whilst it supersedes APB Opinion 30 "Reporting the Results of
operations--Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and

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

                          SEPTEMBER 30, 2001 AND 2000

Transactions" it retains the presentation of discontinued operations but
broadens that presentation to include a component of an entity (rather than a
segment of a business). However, discontinued operations are no longer recorded
at net realizable value and future operating losses are no longer recognized
before they occur. Under SFAS No. 144 there is no longer a requirement to
allocate goodwill to long-lived assets to be tested for impairment. It also
establishes a probability weighted cash flow estimation approach to deal with
situations in which there are a range of cash flows that may be generated by the
asset being tested for impairment. SFAS No. 144 also establishes criteria for
determining when an asset should be treated as held for sale.

    SFAS No. 144 is effective for fiscal years beginning after December 15, 2001
and interim periods within those fiscal years, with early application
encouraged. The provisions of the Statement are generally to be applied
prospectively. The Company, does not anticipate that adoption of SFAS No. 144
will have a material impact on its results of operations or its financial
position.

5.  RECLASSIFICATIONS

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

6.  LOSS PER SHARE

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

7.  COMMITMENTS AND CONTINGENCIES

BUILDING LEASE

    The Company leases several offices and warehouses within Poland under
cancelable operating lease terms. Minimum future lease commitments for the
aforementioned building leases relate to 2001 and 2002 only. The future minimum
lease commitments related to these building leases approximates $158,000 in 2001
and $68,000 in 2002 as of September 30, 2001.

CAR LEASES

    The Company has operating car leases with various leasing companies in
Poland. Minimum future lease commitments for the aforementioned car leases as of
September 30, 2001 are $100,000 in 2001, $348,000 in 2002 and $7,000 in 2003.

CONDUIT LEASES

    The Company also leases space within various telephone duct systems from
TPSA under cancelable operating leases. The TPSA leases expire at various times,
and a substantial portion of the Company's contracts with TPSA permit
termination by TPSA without penalty at any time either immediately upon the
occurrence of certain conditions or upon provision of three to nine months
notice without cause. All of the agreements provide that TPSA is the manager of
the telephone duct system and will lease space within the ducts to the Company
for installation of cable and equipment for the cable television systems. Some
conduit agreements with TPSA provide that cables can be installed in the conduit
only for the use of the cable television. If the Company uses the cables for a
purpose

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

                          SEPTEMBER 30, 2001 AND 2000

other than cable television, such as data transmission, telephone, or Internet
access, such use could be considered a violation of the terms of certain conduit
agreements, unless this use is expressly authorized by TPSA. There is no
guarantee that TPSA would give its approval to permit other uses of the
conduits. The Company has introduced Internet services to certain of its
customers, and is in the process of renegotiating certain conduit agreements
with TPSA. The lease agreements provide for monthly lease payments that are
adjusted quarterly or annually, except for the Gdansk lease agreement which
provides for an annual adjustment after the ninth year and then remains fixed
through the tenth year of the lease. Minimum future lease commitments for the
aforementioned conduit leases relate to 2001 and 2002 only, as all leases are
cancelable in accordance with the aforementioned terms. The future minimum lease
commitments related to these conduit leases approximates $429,000 in 2001,
$172,000 in 2002 and $1,000 in 2003 as of September 30, 2001.

PROGRAMMING COMMITMENTS

    The Company has entered into long-term programming agreements and agreements
for the purchase of certain exhibition or broadcast rights with a number of
third party and affiliated content providers for its cable systems. The
agreements have terms which range from one to five years and require that the
license fees be paid either at a fixed amount payable at the time of execution
or based upon a guaranteed minimum number of subscribers connected to the system
each month. In connection with the Canal+ transaction, management is currently
in discussions with some of the programming providers to re-negotiate key terms
of the contracts and the commitments may change substantially. At September 30,
2001, the Company had an aggregate minimum commitment in relation to these
agreements of approximately $70,772,000 over the next nine years, approximating
$6,752,000 in 2001, $25,791,000 in 2002, $19,625,000 in 2003, $11,694,000 in
2004 and $6,910,000 in 2005 and thereafter.

REGULATORY APPROVALS

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

LITIGATION AND CLAIMS

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

PROCEEDING RELATING TO HBO POLSKA

    Two of the Company's cable television subsidiaries and four other unrelated
Polish cable operators and HBO Polska Sp. z o. o., have been made defendants in
a lawsuit instituted by Polska Korporacja Telewizyjna Sp. z o. o., a subsidiary
of Canal+. The primary defendant in the proceedings is HBO

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

                          SEPTEMBER 30, 2001 AND 2000

Polska Sp. z o. o. which is accused of broadcasting the HBO television program
in Poland without a license from the Council as required by the Radio and
Television Act of 1992, as amended, and thereby undertaking an activity
constituting an act of unfair competition. The Company does not believe that the
final disposition of the lawsuit will have a material adverse effect on its
consolidated financial position or results of operations.

DIVIDEND RESTRICTIONS

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

PCBV MINORITY STOCKHOLDER'S CLAIM

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

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

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

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

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

                          SEPTEMBER 30, 2001 AND 2000

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

    The claims by the Reece Group consist of allegations previously made by
Reece Communications, Inc. ("RCI"). RCI's allegations were premised on, among
other things, alleged acts, errors, omissions, misstatements, misleading
statements or breaches of duty by the aforementioned officers, directors, or
controlling shareholders. UPC Polska has negotiated a settlement of those claims
and a simultaneous purchase of the Reece Group's PCBV shares, as well as the
purchase of all other shares of PCBV held by other minority shareholders and a
settlement of their claims. On August 28, 2001, in exchange for the release of
claims and the transfer of all outstanding shares in PCBV held by minority
shareholders, UPC Polska and/or its affiliates paid in the aggregate
approximately $3.6 million in cash at closing and issue promissory notes for
$17 million, which promissory notes accrue interest at 7% per annum and are
payable in increments over a period of 36 months in cash or UPC common stock at
the payer's election.

    The Company has accounted for the $21.2 million as goodwill in the
accompanying consolidated financial statements in accordance with SFAS 141.
Accordingly there has been no amortization recorded associated with this
goodwill.

                                       24
<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 the Company. Such discussion
and analysis should be read in conjunction with the accompanying unaudited
consolidated financial statements of the Company. Additionally, the following
discussion and analysis should be read in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations and the
audited consolidated financial statements included in Part II of the Company's
2000 Annual Report. The following discussion focuses on material trends, risks
and uncertainties affecting the results of operations and financial condition of
the Company.

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

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

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

OVERVIEW

    The Company operates the largest cable television system in Poland with
approximately 1,851,800 homes passed and approximately 1,007,400 total
subscribers as at September 30, 2001.

    The Company's revenues have been and will continue to be derived primarily
from monthly subscription fees for cable television services. The Company
charges its subscribers fixed monthly fees for their choice of service packages
and for other services, such as premium channels, tuner rentals and additional
outlets, all of which are included in monthly subscription fees. The Company
currently offers broadcast, intermediate (in limited areas) and basic packages
of cable service. At September 30, 2001, approximately 63.6% of the Company's
subscribers received its basic package. Currently, almost all of the Company's
cable revenues are derived from monthly subscription fees.

                                       25
<Page>
    During 1999 and 2000, management completed several strategic actions in
support of its business and operating strategy. On June 5, 1998, the Company
began providing the Wizja TV programming package, with its initial 11 channels
of primarily Polish-language programming, to its basic subscribers. Since that
date, the basic Wizja TV package has been expanded to 37 channels. Management
believes that this selection of high quality primarily Polish-language
programming will provide it with a significant competitive advantage in
increasing its cable subscriber penetration rate. The Company has continued to
invest in upgrading its networks in order to provide additional revenue
generating services to its customers and continue to improve the security of
that network.

    During the fourth quarter of the year 2000, the Company began providing
Internet services to its cable television customers and has been investing in
upgrading its network to provide this service. Individual and home office
Internet subscribers are charged a monthly subscription fee of approximately $36
and $48, respectively.

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

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

    The Company generated an operating loss of $37.9 million for the nine months
ended September 30, 2001, as compared to a loss of $32.4 million for the nine
months ended September 30, 2000, primarily due to programming expenses related
to the purchase of the Wizja TV programming package from an affiliated company
and high depreciation and amortization charges related to additional goodwill
pushed down as a result of UPC Polska's Merger.

    In addition to other operating statistics, the Company measures its
financial performance by EBITDA, an acronym for earnings before interest, taxes,
depreciation and amortization. The Company defines EBITDA to be net loss
adjusted for interest and investment income, depreciation and amortization,
interest expense, foreign currency gains and losses, income taxes, gains and
losses from the sale of assets other than in a normal course of business and
minority interest. The items excluded from EBITDA are significant components in
understanding and assessing the Company's financial performance. The Company
believes that EBITDA and related measures of cash flow from operating activities
serve as important financial indicators in measuring and comparing the operating
performance of media companies. EBITDA is not a U.S. GAAP measure of loss or
cash flow from operations and should not be considered as an alternative to cash
flows from operations as a measure of liquidity. The Company reported negative
EBITDA of $0.1 million for the three months ended September 30, 2001 compared to
positive EBITDA of $0.2 million for the three months ended September 30, 2000,
and reported positive EBITDA of $2.0 million and $1.6 million for the nine
months ended September 30, 2001 and 2000 respectively.

                                       26
<Page>
    CABLE TELEVISION REVENUE. Revenue increased $1.5 million or 8.8% from
$17.1 million for the three months ended September 30, 2000 to $18.6 million for
the three months ended September 30, 2001 and increased $6.4 million or 12.5%
from $51.1 million for the nine months ended September 30, 2000 to
$57.5 million for the nine months ended September 30, 2001. This increase was
primarily attributable to the appreciation of the Polish zloty against the US
dollar.

    Revenue from monthly subscription fees represented 97.8% and 98.1% of cable
television revenue for the nine months ended September 30, 2001 and 2000,
respectively. During the three and nine months ended September 30, 2001, the
Company generated approximately $1.1 million and $3.3 million, respectively, of
additional premium subscription revenue as a result of providing the HBO Poland
service pay movie channel and Wizja Sport channel to cable subscribers as
compared to $1.2 million and $3.3 million, respectively, for the three and nine
months ended September 30, 2000 (although the Company expanded Wizja Sport into
its basic package as of March 24, 2001).

    DIRECT OPERATING EXPENSES. Direct operating expenses increased
$0.7 million, or 6.3%, from $11.1 million for the three months ended
September 30, 2000 to $11.8 million for the three months ended September 30,
2001, and increased $5.9 million or 19.0% from $31.0 million for the nine months
ended September 30, 2000 to $36.9 million for the nine months ended
September 30, 2001, principally as a result of an increase in programming costs.
Direct operating expenses decreased from 64.9% of revenues for the three months
ended September 30, 2000 to 63.4% of revenues for the three months ended
September 30, 2001 and increased from 60.7% of revenues for the nine months
ended September 30, 2000 to 64.2% of revenues for the nine months ended
September 30, 2001.

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased $1.1 million or 19.0% from $5.8 million for
the three months ended September 30, 2000 to $6.9 million for the three months
ended September 30, 2001 and amounted to $18.6 million for the nine months ended
September 30, 2000, remaining the same for the nine months ended September 30,
2001. This increase was attributable primarily to the increase in bad debt
expense.

    As a percentage of revenue, selling, general and administrative expenses
increased from 33.9% for the three months ended September 30, 2000 to
approximately 37.1% for the three months ended September 30, 2001 and decreased
from 36.4% of revenue for the nine months ended September 30, 2000 to 32.3% for
the nine months ended September 30, 2001.

    DEPRECIATION AND AMORTIZATION. Depreciation and amortization expense
increased $1.2 million, or 10.5%, from $11.4 million for the three months ended
September 30, 2000 to $12.6 million for the three months ended September 30,
2001 and increased $5.9 million or 17.4% from $34.0 million for the nine months
ended September 30, 2000 to $39.9 million for the nine months ended
September 30, 2001, principally as a result of the continued build-out of the
Company's cable networks. Depreciation and amortization expense as a percentage
of revenues increased from 66.7% for the three months ended September 30, 2000
to 67.7% for the three months ended September 30, 2001 and increased from 66.5%
for the nine months ended September 30, 2000 to 69.4% for the nine months ended
September 30, 2001.

    INTEREST EXPENSE. Interest expense amounted to $0.6 million for the three
months ended September 30, 2000, remaining the same for the three months ended
September 30, 2001 and decreased $0.1 million, or 5.3%, from $1.9 million for
the nine months ended September 30, 2000 to $1.8 million for the nine months
ended September 30, 2001. The decrease is a result of repayment of a loan from a
third party by a subsidiary of PCI in the first nine months of 2001.

    INTEREST INCOME. Interest income decreased $5,000, or 7.6%, from $66,000 for
the three months ended September 30, 2000 to $61,000 for the three months ended
September 30, 2001 and increased $52,000, or 30.4%, from $171,000 for the nine
months ended September 30, 2000 to $223,000

                                       27
<Page>
for the nine months ended September 30, 2001, primarily due to the increase in
the level of cash used to fund the Company's operations.

    FOREIGN EXCHANGE LOSS. For the three months ended September 30, 2001,
foreign exchange loss amounted to $5.1 million as compared to a foreign exchange
loss of $2.8 million for the three months ended September 30, 2000 and for the
nine months ended September 30, 2001, foreign exchange loss amounted to
$1.9 million as compared to a foreign exchange loss of $7.9 million for the nine
months ended September 30, 2000. This change is primarily due to the fluctuation
of the Polish currency during the three and nine months ended September 30,
2001.

    INCOME TAX EXPENSE. The Company recorded $79,000 of income tax expense for
the three months ended September 30, 2001, as compared to $44,000 for the three
months ended September 30, 2000 and $162,000 of income tax expense for the nine
months ended September 30, 2001, as compared to $84,000 for the nine months
ended September 30, 2000.

    NET LOSS. For the three months ended September 30, 2001 and the three months
ended September 30, 2000, the Company had net losses of $18.3 million and
$14.6 million, respectively, and for the nine months ended September 30, 2001
and the nine months ended September 30, 2000, the Company had net losses of
$41.7 million and $42.1 million, respectively. These losses were the result of
the factors discussed above.

    NET LOSS APPLICABLE TO COMMON STOCKHOLDERS. Net loss applicable to common
stockholders increased from $19.2 million for the three months ended
September 30, 2000 to $23.4 million for the three months ended September 30,
2001 and decreased from $55.7 million for the nine months ended September 30,
2000 to $56.9 million for the nine months ended September 30, 2001 due to the
accretion of redeemable preferred stock and the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

    The Company has met its cash requirements in recent years primarily with
(i) capital contributions and loans from UPC Polska, (ii) borrowings under
available credit facilities, (iii) cash flows from operations, and (iv) the sale
of $130 million aggregate principal amount of the Company's 9 7/8% Senior Notes
due 2003 ("PCI Notes"). The Company had negative cash flows from operating
activities of $5.5 million for the nine months ended September 30, 2001 and
positive cash flows from operating activities of $1.0 million for the
corresponding period in the 2000. The negative cash flows for the period ending
September 30, 2001 are due to settlement of trade liabilities using funds
provided by its parent which are reported as financing transactions.

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

    Cash used for the purchase and expansion of the Company's cable television
networks was $9.0 million and $16.7 million for the nine months ended
September 30, 2001 and 2000, respectively.

    On September 30, 2001, the Company was committed to pay at least
$73.9 million in guaranteed payments (including but not limited to payment for
programming rights) over the next nine years of which at least approximately
$7.9 million was committed through the end of 2001.

    Pursuant to the indenture governing the PCI Notes (the "PCI Indenture"), the
Company is subject to certain restrictions and covenants, including, without
limitation, covenants with respect to the following matters: (i) limitation on
additional indebtedness; (ii) limitation on restricted payments;
(iii) limitation on issuances and sales of capital stock of restricted
subsidiaries; (iv) limitation on transactions with affiliates; (v) limitation on
liens; (vi) limitation on guarantees of indebtedness by

                                       28
<Page>
subsidiaries; (vii) purchase of PCI Notes upon a change of control;
(viii) limitation on sale of assets; (ix) limitation on dividends and other
payment restrictions affecting subsidiaries; (x) limitation on investments in
unrestricted subsidiaries; (xi) limitation on lines of business;
(xii) consolidations, mergers and sale of assets; and (xiii) provision of
financial statements and reports.

    The Company is in compliance with these covenants.

    The Company has pledged to State Street Bank and Trust Company, the trustee
for the PCI Notes (for the benefit of the holders of the PCI Notes),
intercompany notes issued by PCBV, of a minimum aggregate principal amount
(together with cash and cash equivalents of the Company), equal to at least 110%
of the outstanding principal amount of the PCI Notes, and that, in the
aggregate, provide cash collateral or bear interest and provide for principal
repayments, as the case may be, in amounts sufficient to pay interest on the PCI
Notes. Notes payable from PCBV to the Company were $230,520,000 at
September 30, 2001 and $210,530,000, $176,815,000 and $160,830,000 at
December 31, 2000, 1999 and 1998, respectively.

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

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

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

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

                                       29
<Page>
concern and accordingly enable the Company and its subsidiaries to meet their
financial obligations if and when needed, for the period at least through
July 31, 2002.

NEW ACCOUNTING PRINCIPLES

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

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

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

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

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

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

    Effective January 1, 2001, the Company adopted SFAS 133, which establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in

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

    In August 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 144, "ACCOUNTING FOR
THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS". SFAS No. 144 establishes a
single accounting model for long-lived assets to be disposed of by sale
consistent with the fundamental provisions of SFAS 121 "ACCOUNTING FOR THE
IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS TO BE DISPOSED OF".
Whilst it supersedes APB Opinion 30 "Reporting the Results of
operations--Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions" it
retains the presentation of discontinued operations but broadens that
presentation to include a component of an entity (rather than a segment of a
business). However, discontinued operations are no longer recorded at net
realizable value and future operating losses are no longer recognized before
they occur. Under SFAS No. 144 there is no longer a requirement to allocate
goodwill to long-lived assets to be tested for impairment. It also establishes a
probability weighted cash flow estimation approach to deal with situations in
which there are a range of cash flows that may be generated by the asset being
tested for impairment. SFAS No. 144 also establishes criteria for determining
when an asset should be treated as held for sale.

    SFAS No. 144 is effective for fiscal years beginning after December 15, 2001
and interim periods within those fiscal years, with early application
encouraged. The provisions of the Statement are generally to be applied
prospectively. The Company, does not anticipate that adoption of SFAS No. 144
will have a material impact on its results of operations or its financial
position.

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

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

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

                                       31
<Page>
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 nine months ended September 30, 2001. Some of the
Company's operating and financing expenses and capital expenditures are expected
to continue to be denominated in or indexed in U.S. dollars. By contrast,
substantially all of the Company's revenues are denominated in zloty. Therefore,
any devaluation of the zloty against the U.S. dollar that the Company is unable
to offset through price adjustments will require it to use a larger portion of
its revenue to service its U.S. dollar denominated obligations and contractual
commitments.

    The Company estimates that 10% change in foreign exchange rates would impact
reported operating loss by approximately $1.2 million. In other terms, a 10%
depreciation of the Polish zloty against the U.S. dollar, would result in a $1.2
million decrease in the reported operating loss. This was estimated using 10% of
the Company's operating loss after adjusting for unusual impairment and other
items including U.S. dollar denominated or indexed expenses. The Company
believes that this quantitative measure has inherent limitations because, as
discussed in the first paragraph of this section, it does not take into account
any governmental actions or changes in either customer purchasing patterns or
the Company's financing or operating strategies.

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

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

                                       32
<Page>
                           PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

    Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    None.

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

    None.

ITEM 5. OTHER INFORMATION:

    Not applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

<Table>
<S>                     <C>
(a) Exhibits

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

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

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

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

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

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

(b) Reports on Form 8-K

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

                                       33
<Page>
                                   SIGNATURES

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

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

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

Date: November 14, 2001

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