Changes at top of K2.

Due to its dynamic development and as part of preparation for listing on a stock exchange planned for Q2 2007, K2 Internet S.A. strengthens the management board and tidies up its organizational and capital structure.

In February this year, Michał Lach, the founder and co-author of the market success of K2 became the Chairman of the Supervisory Board. Among other things, he will be responsible for K2’s further development focusing on strategic alliances and a search for new directions of development. At the same time Michał will be also engaged in other enterprises. In the nearest future he will probably finalize his own investment in an e-pharmacy Dom Zdrowia, which is a client of K2 at the same time. Michał does not exclude the possibility of other investments, including those implemented with bmp group funds which have been involved in financing and support of K2 development for 7 years.

Janusz Żebrowski – until now the President of the Management Bard and Managing Director, keeps the position of the President of the Management Board. His task is to co-create and implement the development strategy not only for the Agency but also for other departments. These are: K2 New Technologies Experts, which is a provider of dedicated IT solutions existing as part of K2, and ACR, an independent advertising agency owned by K2. He will be also responsible for the company’s preparation for becoming a public company.

His duties related to day-to-day management of the Agency have been taken over by Tomasz Tomczyk who is now the Co-managing Director.

Tymoteusz Chmielewski, who is the Co-managing Director and administers the K2 New Technologies Experts and supervises the development of technological services of the entire company, has also joined the Management Board.

According to the preliminary data for 2006 the assumptions of the business plan were successfully implemented, the revenues of the entire group went beyond PLN 16 million and the EBITDA margin was close to the projected 20%. Good financial results made it possible to e.g. continue ongoing investments, pay out the dividend and purchase the remaining 25% of shares in ACR S.A from the bmp funds. This way the group K2 Internet S.A. also includes ACR S.A., owned in 100%, and K2 Sp. z o.o. an entity established to manage new ventures, including outsourcing of e-commerce projects, controlled in 100% by the group.

ACR, which has been managed by Jola Zaczek since the company's establishment, presently employs 6 persons. However, having acquired new clients the team has been recently strengthened by 3 persons and further personnel expansion is planned.

As part of extending competences and developing potential of the services provided to a growing number of clients, which last year included Play and Agora, the team of K2 grew by a dozen or so new persons. In the past few weeks the team was joined, among others, by: Joanna Wrześniowska, Creative Director, Magdalena Zawada - Account Manager, Katarzyna Ataman - Senior Strategic Planner in the Consulting Department and Maciek Lipiec – Information Architect in the Architecture Department.

In view of the market development rate and some new possibilities which have arisen, K2 does not exclude closer co-operation (including investments) with companies having unique competences which could enrich the company’s services portfolio.