Asbisc Enterprises Plc Published Its Offering Prospectus

The information contained herein shall not be distributed in the United States, Canada, Australia or Japan

Warsaw, October 10, 2007

ASBISC ENTERPRISES PLC PUBLISHED ITS OFFERING PROSPECTUS

ASBISC Enterprises Plc (ASBIS),one of the leading distributors of IT products in Central and Eastern Europe, the Baltic States, the former Soviet Union, the Middle East and North Africa published its offering prospectus. Based on the Maximum Price the company plans to raise approximately PLN 82,9 mln to implement its development strategy. The offering, will also involve a partial sell down by some of the existing shareholders, and the overall offer value might amount up to PLN 234 mln.

• The Offer comprises in aggregate 21,205,144 Offer Shares, representing 7,500,000 New Shares to be issued and offered by the Company and 10,939,256 Sale Shares to be offered by the Selling Shareholders. The key Selling Shareholders areMAIZURI Enterprises Ltd. and Alfa Ventures S.A. andKS Holdings Limited. The shares will be offered to Polish and foreign institutional investors, as well as to Polish retail investors.

In addition, KS Holdings Limited has granted the Global Coordinator an Over-allotment Option covering up to an additional 2,765,888 Offer Shares, representing up to 15 per cent. of the base aggregate number of the Offer Shares, to cover over-allotments, if any, made in connection with the Offer and to cover short positions resulting from stabilisation transactions at the WSE (greenshoe).

• The Offer Shares are divided into two tranches:

-the Retail Tranche of 2,650,000 Offer Shares, intended for Retail Investors;

-the Institutional Tranche containing all the remaining 18,555,144 Offer Shares, including up to 2,765,888 Sale Shares, offered under the Over-allotment Option and intended for Institutional Investors.

• Depending on the demand, shares may be shifted between tranches.

• The book-building process for Polish and international institutional investors will take place between 10October and 18October (until 18.00 Warsaw time) and will be handled by ING.

• The period in which retail investors may file subscriptions which will commence on 10 October 2007 and will end on 18 October 2007, at 17.00(Warsaw time). Subscriptions might be filedCustomer Service Desks of ING Securities S.A., Order Placement Points operated by DM Polonia Net S.A. and BM Nordea Bank, Customer Service Desks of DM BZWBK and Order Placement Points of Biuro Maklerskie Banku BPH S.A.

• The Maximum Price per share is PLN 11.05.
  The indicative PriceRange for the Offer has been set at PLN 7,50 (USD 2,8) to PLN 9,20 (USD 3,4) per share.

• The Offer Price will be determined by the Company and the Selling Shareholders upon the recommendation of the Managers after the termination of the Subscription Period not later than on 19 October 2007 taking into account the results of book-building amongst the institutional investors.

• Allotment will occur promptly following the Subscription Period, not later than on 19 October 2007, subject to acceleration or extension of the timetable for the offer at the discretion of the Company and the Selling Shareholders.

• The principal use of the proceedsfrom new shares issued by ASBIS is to invest in the further development of the Group's own brands of IT equipment - Prestigio and Canyon, enabling the Group to take advantage of early payment discounts offered by certain suppliers and expanding the range of branded end-user products offered by the Company.

• The Offer Shares are expected to be listed on the Warsaw Stock Exchange around 30 October 2007.

• The Company’s advisors during the IPO process are: ING (Global Manager of the Offer), ING Securities, Dewey & LeBoeuf, Deloitte and Touche .

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ASBIS STRATEGY

The Group’s strategy is aimed at expanding business and boosting profitability, to be achieved by enhancing the operating efficiency of computer component distribution and by increasing sales under private labels. The Group intends to meet these objectives through:

• increasing sales and market share in the EMEA region;
• expanding into new emerging markets;
• developing its private label business;
• continuing to focus on leveraging its size and distribution capacity to secure better commercial terms and to optimise its product mix; and
• enhancing operating efficiency and automated processes, including its on-line sales channels.

Increasing sales and market share in the EMEA region

As confirmed by independent market reports produced by Gartner, computer penetration in the markets in which the Group operates is still significantly lower than in more developed Western European markets. As a result, demand for computer products in these markets is growing rapidly and the Company expects it to continue to grow at a high rate in the foreseeable future. The Group will continue to focus on increasing its revenue and market share in these growing markets and believes that it is in an advantageous position to do so, due to its relationships with leading international suppliers, extended distribution network and strong local presence.

Expansion into new emerging markets

In recent years, the Group has entered a number of new emerging IT markets in North Africa. Although revenues derived from these markets still represent a relatively low share of the Group's total revenues, this share is increasing, as these markets continue to grow and as the Group continues to expand to other emerging and growing markets including in Africa and Central Asia (in particular countries such as Libya, Kenya, as well as Moldova, Azerbaijan, Georgia and Armenia). The Group expects that its long experience of successfully competing in emerging, high-growth markets, combined with the geographic proximity of its headquarters to these markets, will help it strengthen its market position and increase its revenues.

Development of private label business

The Group's private label (branded) product lines, Canyon and Prestigio, are manufactured by leading OEM producers in the Far East (i.e., Korea, Taiwan, and China), often based on designs developed by the Group, selected on the basis of their quality and potential for achieving high profit margins in the Group’s markets. The Group markets and sells these products under its own brands, successfully competing with products of comparable quality marketed under international brands. The Group believes that increasing sales of private label products as part of its total revenues will have a positive impact on its overall profitability, as these products return a higher profit margin, compared to international suppliers’ products distributed by the Group. As a result, the Group aims to continue expanding the range of its private label products and strengthening their promotion in its markets.

Continuing to focus on leveraging its size and distribution capacity to achieve better commercial terms and to optimize its product mix

The Group's local presence in a number of markets in which it operates and the size and breadth of its operations, combined with its centralized procurement system for negotiating with suppliers, help increase the Group's purchasing power and strengthen its ability to negotiate and achieve more beneficial terms in its distribution agreements, including achieving agreements with respect to the distribution of products offering higher profit margins.

Enhancing operating efficiency and automated processes, including its on-line sales channels

The Group continues to focus on improving operating efficiency and enhancing its automated processes, with a view to reducing operating expenses and increasing its profit margins, mainly through enhancing its own on-line, end-to-end supply chain management system, which operates over its IT4Profit platform. This automated system covers a wide range of Group activities, from purchasing processes with key suppliers, to intercompany transactions, order processing and business data exchange with customers, as well as automated B2C (business-to-customer) connection with e-shops of resellers. Approximately half of the Group's revenues were derived from on-line transactions with customers in 2006, and the Group aims to increase this percentage.

USE OF PROCEEDS FROM THE OFFER

Based on the Maximum Price, the Company may raise up to approximately PLN 82.9 million (approximately U.S[1]. $29.6 million). The net proceeds from the sale of the New Shares, after paying commissions, fees and expenses associated with the preparation of the Offer and the sale of New Shares, will be used (in the order of priority) for the purposes of:

Purpose of use of proceeds / Amount
Further developing the Group’s own brands of IT equipment - Prestigio and Canyon / up to PLN39.1 mln
Enabling the Group to take advantage of early payment discounts offered by some of the Group’s key suppliers / up to PLN 21.8 mln
Expansion of the range of branded end-user products offered by the Company, including necessary working capital requirements in this respect / do 15.4 mln zł
Completion of a purchase of a building in Slovakia, serving as a headquarters of a local subsidiary / Up to PLN 2 mln

• Further developing the Group’s own brands of IT equipment - Prestigio and Canyon - by investing in their marketing, design, sourcing and quality control – up to approximately PLN 39.1 million (approximately U.S.$ 14.0 million). Marketing of the Prestigio and Canyon brands will aim at increasing customer and product awareness which will be achieved via various marketing activities such as advertising, publishing of promotional materials, product presentations and other marketing activities. The Group expects to gain significant strategic and commercial advantages from the development of its own brands and is committed to supporting growth of both Canyon and Prestigio brands;

• Enabling the Group to take advantage of early payment discounts offered by some of the Group’s key suppliers, such as Seagate Technologies and Hitachi Global Storage, thus enhancing its bottom line performance – up to approximately PLN 21.8 million (approximately U.S.$ 7.8 million);

• Expansion of the range of branded end-user products offered by the Company, including necessary working capital requirements in this respect – up to approximately PLN 15.4 million (approximately U.S.$ 5.5 million). In recent years, the Group introduced A- Brand notebooks (such as Toshiba) to its distribution network out of which it expects large amounts of sales and more need for working capital;

• Completion of a purchase of a building in Slovakia, serving as a headquarters of a local subsidiary – up to approximately PLN 2.0 million (approximately U.S$ 0.7 million). The property (Tuchovske Pole) is situated in the Bratislava Vajnory area, close to the International Airport of Bratislava. The area of 9,128 sq.m will be used for building offices and a warehouse which will substitute for the Company’s current facilities.

The Company is planning to use net proceeds of the subscription for the New Shares for the purposes specified above within 12 months from the Closing Date. Pending application of any excess funds the Company will invest them in short-term, investment-grade and interest bearing or zero-coupon securities or bank deposits.

In order to optimize benefits from the money raised, the Company intends to start using the net proceeds from the sale of new shares for the purposes listed above immediately after the Offering is completed.

SHAREHOLDING STRUCTURE BEFORE AND AFTER THE OFFER

Current major shareholders of the Company are KS Holdings, (53.49%), and financial investors –MAIZURI Enterprises Ltd.(10%), and Alpha Ventures (6.67%). The remaining shares are mainly owned by the Company’s management and employees. After the offer, the free float of the Company is expected to be 38.2%.

TIMETABLE OF THE OFFER

October 10 - 18 2007 / Book-building Period (until 18.00 Warsaw time)
October 10-18, 2007 / Subscription for retail investors (until 17.00 Warsaw time)
No later thanOctober 19, 2007 / Allotment and Pricing Date
October 24, 2007 / Settlement and Payment Date
around October 30, 2006 / Planned Listing Date

FINANCIAL PERFORMANCE OF ASBIS

After first six months of 2007 Group’s revenues increased to USD 540 million, from USD 426 million in the same period of previous year (26.7% increase). Net profit increased to USD 3.2 million from USD 2.5 million (27.4% increase).

In 2006, revenues posted by the Group rose to USD 1,009million, from USD 930million (up 8.4% YoY) and USD 756million (up 23.1% YoY) in 2005 and 2004, respectively. In the same period, net profit generated by the Group (after tax and before minorities and listing expenses write-off) was also on the rise and in 2006 reached USD 11.1million, relative to net profit of USD 8.4million in 2005 and USD 2.2million in 2004, the figures representing the increase of 32.1% and 272.5%, respectively.The table below presents key financial date of ASBIS Group in the first half of 2007, and years 2006, 2005, 2006.

(in thousand USD) / 1H 2007
Not audited data / 1H 2006
Not audited data / 2006
Audited data / 2005
Audited data / 2004
Audited data
Sales revenue / 540055 / 426368 / 1008 / 930389 / 755 719
Operating profit / 5644 / 4 431 / 16083 / 12 290 / 5 119
Net profit / 3168 / 2486 / 11 070 / 8 378 / 2 249

For additional information please contact:

Magda Kołodziejczyk, M+G

Ph: (22) 625 71 40, 0501 16 88 07

e-mail:

Costas Tziamalis, ASBISc Enterprises Plc.

ph: 00357 25 857000

e-mail:

David Newton, Seymour Pierce Ltd

Tel: 0044 20 7107 8336

e-mail:

For more information, visit also the company's website at

ASBIS is one of the leading distributors of IT products in Central and Eastern Europe, the Baltic States, the former Soviet Union, the Middle East and North Africa. The Company is incorporated in Cyprus and its shares are already listed on the AIM market in London.

The ASBIS Group combines broad geographical reach with a wide range of products distributed on a "one-stop-shop" basis. Additionally, the Company distributes its private labels, Canyon and Prestigio. As at December 31st 2006, ASBIS provided its services to over 14 thousand customers in approximately 70 countries.

Group is a strong and reliable partner for leading international suppliers of IT components, including Intel, AMD, Seagate, Samsung, Microsoft, Hitachi and Toshiba.

The revenues of ASBIS in the H1 2007 amounted to USD 540m, which represented 26.7% growth in comparison to H1 2006. The company recorded USD 3.2m of net profit, 27.4% increase in comparison to the same period in 2006.

In 2006 ASBIS’ revenues exceeded USD 1.0bn, whilst net profit was USD 11.1m.

The major shareholders of the Company are KS Holdings, (53.49%), and financial investors –MAIZURI Enterprises Ltd. (10%), and Alpha Ventures (6.67%). The remaining shares are mainly owned by the Company’s management and employees.

All capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Prospectus of ASBIS approved by the Financial Supervision Authority.

This material is of a promotional nature only. The only legally bindingdocument containing information on ASBISc Enterprises Plc (the “Company”)and on the public offering of shares in the Company is the Prospectus. TheProspectus is available on the websites of: Giełda Papierów Wartościowych wWarszawie (), the Issuer () and ING Securities S.A.(), hardcopies of the Prospectus are available atCustomer Service Desks of ING Securities S.A., Order Placement Pointsoperated by DM Polonia Net S.A. and BM Nordea Bank, Customer Service Desksof DM BZWBK and Order Placement Points of Biuro Maklerskie Banku BPH S.A.

These materials are not an offer of securities for sale in the UnitedStates. The securities may not be offered or sold in the United Statesabsent registration or an exemption from registration under the U.S.Securities Act of 1933, as amended.

This communication is directed only at persons who (i) are outside theUnited Kingdom or (ii) are investment professionals falling within Article19(5) of the Financial Services and Markets Act 2000 (Financial Promotion)Order 2005 (the "Order") or (iii) are high net worth entities fallingwithin Article 49(2)(a) to (d) of the Order or (iv) such other persons towhom it may lawfully be communicated (all such persons together beingreferred to as ''Relevant Persons''). This communication must not be actedon or relied on by persons who are not Relevant Persons.

Any statements contained in this announcement which are not historicalfacts are forward-looking statements which express the beliefs, opinionsand expectations of the Company and are subject to various risks anduncertainties that could cause actual results to differ materially fromsuch expectations. The factors that could affect the Company's futurefinancial results are discussed more fully in the Company's prospectus inrelation to its offer of shares.The Company assumes no obligation toupdate information in this announcement.

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[1]at the exchange rate of PLN 2.7989 for U.S. $1, as published by the National Bank of Poland on 29 June 2007