WARSAW -- Telekomunikacja Polska S.A. (TP Group) and TVN S.A. (TVN Group), the two leading Polish telecommunications and media groups, have signed today a long-term framework cooperation agreement (Framework Agreement) for a reciprocal exchange of their respective offerings and services and for the joint creation of new offerings and services. In particular, the Parties have agreed to co-operate in the areas of content supply, post-paid DTH Pay-TV and prepaid satellite TV, Video-On-Demand, Broadband distribution, as well as in the fields of TV-technology and marketing.

The Framework Agreement should allow both parties to expand and strengthen their product offering, while capitalizing on up sell potential and cost synergies from the ongoing convergence of TV, broadband access and other communications services.

Upon implementation of the co-operation program under the Framework Agreement, TP Group will provide broadband and other communications services to the current and future customers of the ‘n’ satellite platform, while TVN Group will become the main content delivery partner for TP Group. TP Group will enhance its basic TV offering with content provided by TVN and by ‘n’ for the Pay TV packages. As a part of the above cooperation, Pay-TV offerings will be harmonized over time to reflect ‘n’ content packaging structure. Ultimately, both companies will benefit from enhanced attractiveness of the multi-play offering, up-selling potential on each others customer bases, as well as from cost synergies from joint technical, marketing and sales activities.

On the basis of the Framework Agreement, TP Group and TVN Group have also agreed to enter into a long-term TV-related technology co-operation. Upon its implementation, current technologies will be harmonized over time, providing a uniform customer service offering. The Management of the Company also believes that co-operation in this area will generate savings in both operating costs and investments, resulting from joint usage and development of technologies.

Telekomunikacja Polska SA