PCF Group S.A.

M&A Activity • Jun 19, 2023

Signing by PCF Group S.A. of a term sheet to conclude a developmentagreementThe Management Board of PCF Group S.A. with itsregistered office in Warsaw (the "Company") hereby informs that on 17June 2023 the Company signed a non-binding term sheet (the "Term Sheet")with a reputable entity from the entertainment industry, with itsregistered office in the United States of America, to conclude adevelopment agreement regarding cooperation in the production of a videogame designated for virtual reality (VR) platforms in the action/combatgenre, under the code name "Dolphin" (the "Product"). In addition, theCompany decided to enter into negotiations to conclude a developmentagreement with the publisher or its affiliate (the "Publisher")concerning the Product on the terms indicated in the Term Sheet.

Under the Term Sheet, works on the Product are to be performed in theso-called work-for-hire model, i.e. by the Company or its affiliate as adeveloper as commissioned by and for the Publisher, in return for whichthe developer will receive the agreed remuneration from the Publisher.The Company estimates that the Publisher's production budget, within thePublisher's total budget for all works related to the Product, will bebetween USD 16 and 24 million. The Product is to be based onintellectual property rights belonging to the Publisher and, within thelimits provided for in the development agreement and applicable laws,all intellectual property rights in the Product are to belong to thePublisher.

The Term Sheet provides for the completion of the development works in2025 and the release of the Product on the most recognizable current andfuture virtual reality platforms.

The conclusion of the development agreement will be announced by theCompany in a separate current report.

The Management Board of the Company also informs that the signing of theTerm Sheet and commencement of negotiations to conclude by the Companywith the Publisher of the development agreement does not mean that theconclusion of the development agreement will take place.