The Asseco Group earned almost PLN 100 million in net profit for the first quarter of 2011. Sales revenues reached PLN 1.2 billion having jumped over 73% in comparison to 2010. Operating profit improved almost 46% year on year and amounted to PLN 221 million. The Group reported a net profit of PLN 97 million, reflecting a 2% growth from the year-ago earnings of PLN 95 million. Furthermore, in the first quarter, Asseco was awarded many prestigious contracts.The Asseco Group consistently pursues its strategy to boost financial results by promoting sales of its proprietary IT solutions. In the first quarter of 2011, sales of proprietary software and services reached PLN 840 million surging 80% from PLN 466 million reported a year ago, and they accounted for 70% of the total turnover. As compared with 2010, the sectoral structure of sales saw some changes. The Group's key revenue drivers are industrial enterprises (42%), followed by banking and finance (32%), and public administration (26%).During the past quarter, Asseco Poland signed many prestigious contracts, among others, with Idea Bank, Xelion Financial Advisors, Polish Telecom, PGE Dystrybucja, and PSE Operator. The Group's backlog of orders looks quite optimistic in comparison with the actual results for 2010. Our orders backlog for 2011 already covers 117% of total revenues generated in 2010, yet in the case of proprietary software the backlog is even higher and corresponds to 141% of the last year's sales of proprietary solutions.The first quarter financial results achieved by the Group's subsidiaries are also very favourable. Formula Systems, Asseco's largest foreign subsidiary, increased its sales revenues by 19% as compared with the first quarter of 2010 (USD 156 million vs. USD 131 million), while its operating profit improved 11% (USD 12 million vs. USD 11 million). Detailed financial results of our companies are presented in the Asseco Group consolidated financial statements for the 1st quarter of 2011, available at www.inwestor.asseco.pl.

The implementation of one of the largest investment projects in Cracow, the Sports and Entertainment Hall in Czyżyny, is set to begin in May this year. The roof and façade of the hall will serve as huge multimedia displays. Asseco Poland's specialists are to equip this building with electrical and telecommunication systems. The contract value will reach PLN 49 million (net of VAT).The consortium comprising the companies Mostostal Warszawa SA (leader), Acciona Infraestructuras SA, Mostostal Puławy SA and Asseco Poland SA signed with the City Development Agency, acting as the project investor, an agreement for the construction of a sports and entertainment hall in Czyżyny, a district of Cracow situated between the city's downtown and Nowa Huta. Although the contractor was selected through a public tender already in July 2010, it took the Employer almost nine months to fulfil all the complicated procedures related to the project financing. The total investment expenditure will amount to approx. 300 million. According to the contract, the hall shall be constructed in 30 months of the agreement execution date.This modern hall featuring numerous training facilities will meet the highest standards of functionality as required by international sports federations. It will provide the venue for music concerts, shows, congresses and trade fairs, and will accommodate over 15 thousand spectators. The whole complex area will reach nearly 967 thousand square metres while the main arena surface is to exceed 4200 m2. It will be adhered by a training hall with 3650 m2 in area, seating 300 persons and ensuring infrastructure for the organization of smaller events.The urban and architectural conceptual design was chosen in an international competition that was won by Cracow's local studio Perbo Projekt and Modern Construction Systems of Poznan. The architects proposed a futuristic building with a streamlined shape. Its roof and façade will serve as huge multimedia displays to show the sporting events and advertisements. This will be the first such installation in Europe and one of the very few worldwide.- We have been waiting a long time to sign this contract and are glad it finally happened. At last we may proceed with the project implementation. This is our next prestigious contract to equip a sports arena. Please remember that last summer we successfully completed our work on the multi-purpose Sports and Entertainment Hall located at the border of Gdańsk and Sopot. Currently, we are engaged in the modernization of the historic Centennial Hall in Wrocław – says Tadeusz Kij, Director of the Building Automation and Data Center Division at Asseco Poland SA.
As part of the hall construction project in Czyżyny, the engineers of Asseco Poland SA will set up all the internal and external electrical installations, including bilateral 15kV power supply, provide and install transformers, power generators, UPS devices, and connect all the technical and technological equipment. The arena's lighting system will conform to the requirements of HD television. Asseco Poland SA will also provide complete teletechnical installations and systems, including fire alarm, voice warning and audio system, closed-circuit monitoring television, access control, burglary and robbery signalization, roof structure monitoring, data transmission, WAN and telephone switchboard, satellite television, video intercom, central clock, automatic air conditioning and ventilation. All these devices will be integrated and supervised by central Building Management Systems (BMS) and Security Management Systems (SMS).Furthermore, Asseco's specialists have been assigned a considerable task to install and launch gigantic LED Video Cube screens with a total surface of 177 m2. Four of them will be installed in the main hall, and one in the training hall.

Asseco Poland S.A .will provide the PROMAK Plus and ePROMAK Plus systems to Xelion Financial Advisors Ltd. The project completion is expected by the end of 2011.The agreement concluded between Asseco Poland and Xelion provides for delivery of the PROMAK Plus and ePROMAK Plus systems along with interfaces necessary to integrate these solutions with the buyer's existing information and communications environment.Xelion Financial Advisors is a company founded by Pekao Bank and UniCredit Bank in 2003. The main service rendered by Xelion is consultancy on investing in investment funds. The company is specialized in individual customer services.- We decided to select the Asseco offer primarily due to its vast experience in the implementation of IT systems for brokerage houses. We were all favourably impressed with the professional approach and commitment demonstrated by Asseco representatives at the tendering stage. It has been also quite important that currently Asseco offers the new version of its flagship product – PROMAK Plus system. Xelion is interested in the latest but at the same time well-tried technological solutions, therefore the Asseco offer was a perfect match to our needs – sums up Maciej Witkowski, Project Manager, Products and Sales Support Director at Xelion.PROMAK-Plus is a comprehensive accounting and transaction system that consists of 70 modules supporting all the activities of a brokerage office. Owing to a multitude of interfaces, the system allows for seamless integration, access and high-regime real-time information exchange with third-party systems (Warsaw Stock Exchange, National Depository for Securities, and banking systems). The remote access system ePROMAK Plus enables brokerage clients to execute broker orders and access their investment account information over the Internet. The system features highly advanced user authentication methods.The proprietary brokerage solutions of Asseco Poland are used by the Brokerage Office of Alior Bank, Brokerage House of Bank Handlowy, Beskidzki Brokerage House, and Millennium Brokerage House, just to mention a few.

Asseco Poland S.A. was granted over 31.1 million zlotys from the European Regional Development Fund, under the Operational Program Innovative Economy, to subsidize the construction and equipment for the Wilanów IT Center in Warsaw.The reimbursement is intended to compensate for the costs of construction and equipping of a modern IT Center building. The IT Competence Centre, established under the project, will foster the development of proprietary software and IT solutions to be implemented in the sectors of banking and finance, insurance, public administration and healthcare as well as in industrial enterprises.The Warsaw-based IT Center is being built at the territory of Wilanów Office Park. The project estimated value exceeds PLN 200 million, of which almost PLN 80 million have been allocated for the purchase of land. The building was designed by Hermanowicz Rewski Architects who are specialized in the creation of non-conventional designs. The general contractor is AWBUD construction company. The building will comprise of three overground storeys and two underground garage storeys. This modern structure, matching the Warsaw modernist architecture, will feature five segments linked together with a high glazed atrium hall. According to the schedule, the building will be put into use in the second quarter of 2012 which is exactly 20 months after the commencement of the construction work.

Following consultations with investors and investment banks the Management Board of Asseco Poland S.A. decided to withhold preparations for the company's listing on the NASDAQ Global Markets.The analyses carried out by the company show that entering the American stock exchange would require an issuance of shares worth between USD 150 and 200 million. Given a very strong financial position of both Asseco Poland S.A. and the Asseco Group (as at the end of 2010 the parent company held over PLN 173 million or USD 58.4 million in cash, while the group's cash position amounted to PLN 842 million or USD 284 million), such an issuance of shares seems unnecessary even assuming the continuation of their acquisition strategy.- I believe the preparation work was not in vain. We have learned a lot by getting to know the mechanisms of launching an IPO and about functioning of a company at the NASDAQ. At this point I would like to thank all the investment banks and advisors who shared with us their expert knowledge and invaluable experience that we may be able to use in the future – said Adam Góral, President of the Management Board at Asseco Poland S.A.Nonetheless, the company does not preclude a situation where a potential future acquisition of a large IT firm, ensuring a spectacular growth of the Asseco Group, might be financed by offering Asseco Poland shares at the NASDAQ Global Markets.

Asseco Poland SA signed with PSE Operator SA, an electricity supply network operator, a 9.75 million zloty contract for provision of maintenance and support services on their EMIS software.The subject of the contract is to provide support services on the business-tier applications, ensure continuing functionality and perform preventive maintenance of the Electricity Market Information System (EMIS). This is a 3-year contract that will be commenced on 16 April 2011.The company of Polskie Sieci Elektroenergetyczne Operator SA is responsible for maintaining security of the Polish National Power System (NPS). The Electricity Market Information System (EMIS) is of critical importance for proper operation of NPS as well as for sustaining continuity of industrial services provided by PSE Operator SA. The EMIS system makes its possible to balance out the demand for and supply of electricity and to manage any power supply limitations. Efficient operation of the systems is also crucial for the cross-border exchange of electricity as well as for functioning of the wholesale electricity market. Working on the solution of such great significance for the country's economy requires that Asseco Poland SA guarantees a top level service under the Service Level Agreement.Solutions developed by Asseco Poland SA have served the Polish electricity sector for over a dozen years. Nowadays, they are used by two-thirds of electricity providers operating in this market. Whereas, over 60% of all electricity bills in Poland are handled by the Asseco's proprietary billing systems. Asseco Poland SA has performed implementation projects, among others, for Poland's largest energy holdings including Enea, Energa, Enion, Tauron, and PGNiG. These projects involved the centralization of customer service offices, centralization of billing systems (in particular within the customer databases) as well as management of the measurement reading data.