As reported in the previous reports, The General Meeting of the company held on 29.6.2012 approved increase of equity of the company. The decision to increase the equity was based on the current potential on the Czech market with the intention to speed up expansion of the company's FTTH Homes Passed expansion. The funds on the bank accounts of the company are already dedicated to the running projects and will be invested mainly during the first half of the next year. Faster expansion than expected is caused by undeveloped infrastructure in the Czech Republic while clients already demand the high speed internet service.

None of the current shareholders had exercised its preemptive rights to underwrite the new shares during the approved period. According the approval made by The General Meeting now The Board of Directors is appointed to invite new shareholder(s) for underwriting. The Board of Directors will try to attract an investor which can contribute to the further development of the company's business. The new shares will not bear any special rights and are not expected to be introduced to the public market.

The target underwriting price will be set higher than former underwriting price of 1'533'954 Series C shares (CZK 20,5), which will guarantee that the corresponding share on value of equity for Series C shareholders will not decrease.

The Board of Directors has not made any decision and has not performed any action in this matter yet.

Summary of the approved capital increase:

Current capital 13.021.554,- CZK 496.437,43 EUR

approved underwriting 500.000,- CZK 19.062,- EUR

underwriting above this amount is allowed up to the maximum underwriting

maximum underwriting 5.000.000,- CZK 190.620,- EUR