Orange Polska S.A.

Legal Proceedings Report • Feb 15, 2018

Current Report (3/2018)Orange Polska S.A. - Warsaw, Poland15February 2018

(translation of Polish version)title:A decision of the Court of Appeal repealing a decision of thePresident of the Office of Electronic Communication.

Pursuant to Article 17(1) of the Regulation (EU) No. 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuse(market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC, the Management Board of OrangePolska S.A. ("Orange Polska") announces about a decision of the Court ofAppeal repealing a decision of the President of the Office of ElectronicCommunication (UKE).

A decision of the Court of Appeal repealing a decision of the Presidentof the Office of Electronic Communication

On 14 February 2018 Orange Polska received a decision of the Court ofAppeal, issued in camera, repealing a decision of the President of theOffice of Electronic Communication of 7 October 2014 declaring effectivecompetition in 76 communes on the market for wholesale broadband accessservices (BSA; market 5/2007) about the issue of which Orange Polskainformed in the current report no. 66/2014 of 8 October 2014. The Courtof Appeal justified the repeal of the decision by the fact it was issuedin a wrong legal form i.e. the issue of a "postanowienie" instead of a"decyzja".

The remaining decisions relating to deregulation remain in force i.e.the decision indicating Orange Polska as having a significant marketposition on the remaining part of Poland (excluding 76 communes) and thedecision declaring expiry of the previous decision (issued in 2011)indicating Orange Polska as having a significant market position inalmost entire country. Therefore, irrespective of the repealing of adecision declaring effective competition, there are no regulatoryobligations on 76 communes imposed on Orange Polska. The decision of theCourt of Appeal does not change the conditions of operations of OrangePolska in 76 communes.

Orange Polska has an up to date analysis confirming, on the basis of theavailable data, that it does not have a dominant position in 76 communeson the market for wholesale broadband access services. The decision ofthe President of the Office of Electronic Communication declaringeffective competition in 76 communes was repealed exclusively on formalgrounds and not on the merits of the decision. Orange Polska willundertake all possible legal actions in order to reinforce thedeclaration of effective competition in 76 communes.

The deregulation of 2014 was one of the important triggers of therollout of the fibre investment program by Orange Polska. The investmentin fibre currently reaches more than 2.5 million households and leads tosignificant improvement of the quality of broadband services in Poland.