Tele-Fonika Kable S.A.The Group

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HISTORY

www.tfkable.pl

was established in 1992 in Myślenice, Polandas a private telecom cables factory.

We reached our current position after acquisitions of other cable producers in Poland –

and Elektrim Kable in 2002Cracow Cable Factory in 2000

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Poland’s and CE Europe’s largest producer of cables and wires

Fourth largest producer of cables and wires in Europe in terms of sales volume

(3,5% market share)

Annual sales 2005 in excess of PLN 3bn (~€ 729mln)

2006 consolidated – in excess of PLN 4.55 bn (~ € 1200mln)

Forecast for 2007 - > € 1.38bn

Over 20 thousand product codes of cables and wires in database, approx. 7,000 in yearly production

Five production plants with a total headcount of over 3,570 employees in Poland, 177 abroad

Sales otside Poland account for around 70% of total sales

Tele-Fonika S.A. Key figures

More than 1500 active customers

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Tele-Fonika is led by a proven and committed management team

President of Management

Board

Position Chief Financial Officer

Vice-President of Management

Board

Tadeusz Zając

Pawel Bak

Piotr Mirek

14 years Years with Tele-Fonika 5 years 13 years

Management Board

Colin McKay

Vice-President of Mangement Board, Sales & Distribution

11 years

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Tele-Fonika Kable S.A. - Group Structure

Tele-Fonika Kable S.A.

Distribution Companies

Production Divisions Other Subsidiaries Wisła Kraków

S.S.A.

Tele-Fonika Kabel Handel 100%

Copper Cable Company Ltd 100%

Tele-Fonika Kable GmbH Central Europe - 100%

Tele-Fonika Cable Americas 100%

TELE-FONIKA Kabely  100%

TELE-FONIKA France 100%

JSC TF Cable 100%

UAB Tele-Fonika Baltic 100%

TELE-FONIKA

Slovakia 100%

Myślenice Plant

Kraków Plant

Bieżanów Plant

Szczecin Plant

Bydgoszcz Plant

Bukowno Plant(metal scrap processing)

Tele-Fonika ZIS Sp. z o.o.

Bydgoskie Kable Sp. z o.o.

CCC Nordic

100%

TELE-FONIKA

Slovenia 100%

TELE-FONIKA

Hungary 100%

Factories

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Production Facilities

Myślenice (1992)

Szczecin (1957) Bydgoszcz (1920)

Kraków (1928), (headquarter)

Kraków-Bieżanow (2000)

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Krakow-Biezanow Plant: Most Recent Addition to the Group

Biezanow plant is a sales head office built in 1999‑2001, represents the most recent addition to the Company’s production facilities. It is one of Europe’s most innovative cable production plant

Biezanow specialises in processing of copper and aluminium rods and in manufacturing of semi-products, such as copper wires and cords, including tinned cables, aluminium sections and cords; these are either used for production at the plant itself or at other Tele-Fonika production facilities.

Krakow is Tele-Fonika’s headquarter and the plant itself was founded in 1928. In December 1998, Zakłady Kablowe Tele-Fonika s.c. of Myślenice acquired a majority stake in the plant, which later merged with Tele-Fonika upon the acquisition of the remaining shares

Krakow plant is continually being enlarged and upgraded. The on-going process of modernisation and overhaul of the plant and equipment as well as the launching of new products and new technologies is closely correlated to market demands. Its wide range of cables includes power cables (including mining cables), control and signalling cables, and special-purpose cables may be used in many sectors of the economy

Biezanow and Krakow Plants

LV & MV cables

47%

Telecom cables

1%

Building and

felexible cables

40%

Rubber cables

9%

Magnet wire1%

Bare conductor

2%

Specialisation: Value of Production in 2006

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Founded in 1923 Specialising in the production of power cables (medium- and high-voltage),

self-supporting and suspended cables, as well as fittings for power cables Sole producer of high-voltage cables in Poland. In 1995, it launched a

production line for cables up to 400kV The plant has a research laboratory fitted with state-of-the art equipment,

for testing high-voltage insulation for power equipment of up to 420kV

Bydgoszcz Plant: World-Class Laboratory and Producer of High-Voltage Cables

Bydgoszcz Plant

LV, MV HV Power

cables98%

Rubber cables

2%

Specialisation: Value of Production in 2006

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Specialises in the production of enamelled winding wires, building and flexible cables, special cables for the automotive and shipbuilding industries

The plant also markets halogen-free and halogen-free fire resistant cables

Szczecin Plant: Specialisation in the Production of Enamalled Wires

Szczecin Plant

LV Power cables

10%

Building and flexible cables

47%

Rubber cables

8%

Enamel wires31%

Bare conductors

4%

Specialisation: Value of Production in 2006

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Myslenice Plant: Continously Expanded and Upgraded Facility

The Plant specialises in the production of all types of telecommunication cables including copper telecommunication cables, data cables (Cat. 5 and 6.), fibre-optic cables

Established in 1992, equipped with state-of-the-art fully-automated process lines, allowing the Company’s products quickly came to comply with top international quality standards

Plant is the youngest and most innovative cable producer in Poland. Since 1995, all processes have been ISO 9001 compliant

As part of its strong commitment to environmental protection has Tele-Fonika implemented an environmental management system which complies with the ISO 14001 standard. The system was certified in 1998

Specialisation: Value of Production in 2006

Myslenice Plant

Telecom cables

94%

Building wires

3%

Data cables

3%

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CONSOLIDATION

Strengthen the current position – cleaning the asset portfolio,

improving efficiencies and cost savings

GROWTHPursue a strategy of organic

growth on existing markets and phased entry into new markets

FOCUS

Focus on core business – production of cables and wires

Strategic Approach: Core Pillars Supporting Enhance of Shareholder Value

Sales organisation

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Major Distribution Centers

www.tfkable.pl

TELE-FONIKA Kable Central Europe Hilden, Groeden

TF KABEL JSCKievTELE-

FONIKA

Kabely Zabreh

Copper Cable Co.

Leicester

TELE-FONIKA France Dijon

TELE-FONIKA Kable Handel

Warsaw, Bytom

Copper Cable Co.

Malmoe

TELE-FONIKA BALTICS Kaunas

TELE-FONIKAHungary

TELE-FONIKA

SlovakiaTELE-FONIKASlovenia

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Major Distribution Centers

Copper Cable Co.

Dubai

TELE-FONIKA Cable Americas

Chicago

Las Vegas

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Certificates:ISO 9001: 2000 and

14001

Germany, 44

Other, 50Italy, 10Slovenia, 12

Norw ay, 13

France, 10

Russia; 26

USA, 41

United Kingdom, 32

Poland, 179

Tele-Fonika holds quality certificates issued by leading certification institutions for the majority of its products

We manufacture our products based on: VDE, UL, BS, NFC, HD, CSA, SABS, GOST, MSHA, cUL, CE and other standards.

Since Poland has joined the European Union, the standards and certificates in the cable and wire industry are more unified which make Tele-Fonika’s products more transerable

Compliance with International Standards and Certifications

Sales results

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Main Markets – sales by value –2006

Western Europe

52%

Central & Eastern Europe

41%

Other3%Americas

4%

1198 mln

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Product split by value – 2006

2006

LV power cables34%

Rubber Insulated cables 11%

Building and flexible27%

XLPE MV Power cables15%

Enamelled Wires6%

Paper Insulated Power Cables

1%

Telecom & Data Cables

4%Bare Conductors

2%

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Product split by value – 3Q 2006 – EXPORT sales

EXPORT SALES 2006

LV power cables36%

Rubber Insulated cables 13%

PVC28%XLPE MV Power

cables15%

Enamelled Wires3%

Paper Insulated Power Cables

1%

Telecom & Data Cables

2%Bare Conductors2%

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OFFER

• Low voltage Cu and Al power cables including armoured with tapes and wires

• Medium voltage 10-35kV cables in XLPE insulation as well as paper insulated MV cables

• High voltage systems (cables & accessories) up to 220 kV

www.tfkable.pl

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Magnet wires - enameld and glass insulated

Overhead bare conductors, ACSR, AAA

www.tfkable.pl

OFFER

Control and signal cables,screened and armoured

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OFFER

Cu telecom cables including indoor, armoured, selfsupported

Fibre optic cables including indoor and loose tube up to 288 fibers

Building wires, flexible wires in PVC, LSF, LSOH and rubber

www.tfkable.pl

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Shipping cables

www.tfkable.pl

Mining cables, power - up to 30kV, control and telecom, in rubber and PVC

OFFER

Cables for oil, automotive, railways and other industries

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CertificatesISO 9001:2000 and 14001

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Wide asortment rangeShort delivery period from factories

Daily cables deliveries from stocks in Poland, Germany, UK & Ireland, Czech Republik and Slovakia, Slovenia, Hungary, France, Baltic countries, Sweden, Ukraine, USA

Flexibility and special arrangements for long term contracts

www.tfkable.pl

OUR STRENGTHS

Modern technology & big production capacities