The Management Board of HOOP S.A. reports that on August 10th 2006 HOOP S.A. signed a preliminary agreement with the shareholders of PAOLA S.A. of Bielany Wroclawskie near Wroclaw, Poland, which is engaged in the same type of business activities as Hoop S.A. The agreement concerns the acquisition by HOOP S.A. of 100% of shares in PAOLA S.A., representing 100% of its share capital and 100% of votes at its general shareholders meeting. The agreement provides also for the sale by HOOP S.A. of 111,776 its shares to one of PAOLA S.A.’s shareholders. The agreement has been concluded under a condition precedent, i.e. its conclusion is subject to approval by the President of the Anti-Trust and Competition Protection Authority to effect a concentration through acquisition of PAOLA S.A. shares by HOOP S.A. The final agreement will be executed after the condition precedent is fulfilled. The parties decided not to disclose the value of the transaction.
