Intel Capital leads 10 million Euro investment in E-commerce site MALL.CZ

·   Intel Capital and MCI have each made a 5 million Euro investment in Netretail Holding, B.V., which operates e-commerce sites in five CEE countries

·   This is the second round of financing for MALL.CZ from Intel Capital

·   Intel Capital demonstrates its strong ongoing commitment to the Central Eastern European region through the follow-on investment in MALL.CZ

PRAGUE, CZECH   REPUBLIC, Sept. 16, 2010 – Intel Capital, Intel's global investment organization, today announced additional funding for MALL.CZ, operated by one of its portfolio companies in the Central Eastern European region. Intel Capital and MCI, a leading Polish investor, have each made a 5 million Euro investment into MALL.CZ’s holding company, Netretail Holding, B.V. (“Netretail Holding”). In addition, Ondra Tomek also invested €1M in the company in a separate investment.

            The investment demonstrates Intel Capital’s confidence in the future prospects for the company and its commitment to the Central and Eastern European region. 

MALL.CZ is located in the Czech Republic with Netretail Holding also having operations in Poland, Hungary, Slovakia and Germany. The Group currently runs localised ecommerce shops in the region with 600 product categories – from consumer electronics to sporting equipment. MALL.CZ has more than 1,000,000 registered customers and a daily visitor rate above 100,000 users.

Arvind Sodhani, president of Intel Capital and Intel executive vice president, said: “This investment is a clear indication of Intel Capital’s commitment to the Central Eastern European region. It demonstrates our unwavering commitment to invest in technology innovation globally, and stimulate economic activity in the region by encouraging local entrepreneurship.”

Ondrej Fryc, CEO of Netretail Holding, commented: "Since 2000 we have pioneered a new approach to Internet retailing, investing heavily in customer services, infrastructure and large logistics warehouses.  Intel Capital has been a very valuable supporter in this endeavour. This approach has differentiated the company from the competition and enabled us to grow significantly in the last few years.  As a result of the second round of financing from Intel Capital and MCI, our group will be able to develop customer satisfaction and grow into other markets in the region. The e-commerce sector is growing rapidly and there are significant opportunities for new approaches and innovations.”

      Marcin Hejka, Managing Director Intel Capital Eastern Europe, Middle East and Africa, said: “Intel Capital first recognised the company’s potential in 2008 when it originally invested in the company. Netretail Holding is one of the leading e-commerce companies in Eastern Europe and achieved strong growth in the last year despite tough economic conditions in the region and negative GDP growth. We have continued to support the company through challenging times and believe that it has excellent growth opportunities to expand into other markets in the region.”

About Intel Capital
Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing and cleantech. Since 1991, Intel Capital has invested more than US$9.5 billion in over 1,050 companies in 47 countries. In that timeframe, 175 portfolio companies have gone public on various exchanges around the world and 241 were acquired or participated in a merger. In 2009, Intel Capital invested US$327 million in 107 investments with approximately 50 percent of funds invested outside the U.S. and Canada. For more information on Intel Capital and its differentiated advantages, visit http://www.intelcapital.com.

MCI was created in the year 1999. It is the leading Private Equity group in Central Europe managing the funds: MCI.TechVentures (Venture Capital), MCI.EuroVentures (Growth Capital), MCI.BioVentures (Venture Capital & Seed Capital), Helix Ventures Partners (Seed Capital & Start-up), Internet Ventures (Venture Capital) & MCI Gandalf Aktywnej Alokacji (Absolut Return Hedge Fund). The value of assets managed by MCI reaches 554 million PLN (30/06/10, including Internet Ventures). It specializes in investments in innovative companies operating in: TMT, Internet & mobile technologies, BPO, VAS, SaaS, IT services, distribution, e-commerce, digital media & entertainment, financial services, medical services,  life science/biotechnology and clean technologies. The MCI Group has so far executed a total of 39 investment projects and executed 17 full exits and six partial exit transactions. MCI currently has direct investments in Poland, Czech Republic and Slovakia, with an approach to Romania and Hungary. In the period between 01.01.1999 and 30.06.2010 MCI Management SA generated net IRR at the level of 19,84%. MCI Management SA is listed on the Warsaw Stock Exchange since February 2001. MCI is a member of the Polish Private Equity Association and the Polish Association of Stock Exchange Issuers.

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