In connection with entering into force on 24 March 2017 direct licensing agreements  and agency agreement concluded with IIC-INTERSPORT International Corporation GmbH (INTERSPORT License Agreement,  own brands license agreement and agency agreement in terms of purchases, referred to collectively as "the Agreement with the IIC" - described in current reports No. 18 of 9 March 2017 and No. 24 of 22 March 2017) and in connection with the adoption by the Extraordinary General Meeting of INTERSPORT Poland SA on 15 March 2017 a resolution No. 4 on the share capital increase by issuing new shares of series F, which allows the Company  for additional funding through the issuance of new shares, the Management Board of INTERSPORT Poland SA with its registered office in Cholerzyn ( "IPL", the "Company") on 22 March 2017 adopted a resolution on the implementation of the "New IPL Business model” which, in the opinion of the IPL Management will have a positive impact on he improvement of the market position and the Company’s financial results.

a.      From 2005 IPL operated basing on a sub license of INTERSPORT brand and purchased own INTERSPORT brands through INTERSPORT Deutschland eG, at the purchase prices valid in that German cooperative. In connection with obtaining from IPL independent license since 24.03.2007 IPL may buy its own brand directly in factories in Asia and Europe, at prices negotiated by INTERSPORT International Corporation, the largest worldwide player in the retail market of sports goods.

b.   Access to favourable purchase prices of INTERSPORT own brands creates new business opportunities:

1.   IPL can offer to customers lower retail prices of products offered so far, which should result in an increase in sales, due to the improvement of their competitiveness.

2.   IPL will also gain access to the product at a lower price level, which was not previously not offered by the German agent. This creates additional opportunities to offer our customers products with better pricing structure tailored to the realities of the Polish market.

3.   Thanks to lower purchase prices, IPL will have the opportunity to realize higher than previously margins , as well as be able to react more flexibly to current sales trends. This should also result in improved turnover of own brands

4.   Given the above, IPL intends ultimately to double the share of INTERSPORT own brands in its offer - to a level of about 25% of sales.

c.       New products ordered directly by IPL, will appear in IPL stores at the end of 2017.

Due to the new share issue carried out in March 2017 the Company raises additional funds that will allow her to realize faster payments to suppliers and therefore she can receive additional discounts. In addition, increasing the share of private labels in sales, will allow a more selective approach to the selection of collection of goods ordered from strategic brands. Both of these factors (additional discounts and greater selectivity) should improve the margin on sales of strategic brands.

    III.            Launching a new Internet platform in the second quarter of 2017, integrated with the sale in retail shops. Implementation of this modern solution, in conjunction with access to products with a lower price level, will significantly increase the turnover of e-shop. We assume that the target share of online sales may reach 10% of total sales.