Embargo until 3 November 2009 11 a.m.

Enterprise Investors’ Venture Capital Fund
Provides Expansion Financing to Stem Cell Bank

Warsaw, 3 November 2009 — Enterprise Venture Fund I (EVF I), the venture capital fund managed by Enterprise Investors (EI), has provided expansion financing and become majority shareholder of Polski Bank Komórek Macierzystych (PBKM), a stem cell bank. EVF I has acquired 50.1% of PBKM shares for PLN 18.1 million (approx. €4.4 million). Polski Bank Komórek Macierzystych is the largest stem cell bank in Poland and the fourth largest cord blood bank in Europe.

PBKM is Enterprise Venture Fund’s fifth investment in the last 11 months. The fund is the most active venture capital investor at present in Poland and CEE. This investment also brings the total number of investments made by EI-managed funds to 114.

Polski Bank Komórek Macierzystych was established in 2002 and is the largest stem cell bank in Poland and the fourth largest cord blood bank in Europe. It operates in Poland and, through subsidiaries and related companies, in Hungary (Krio), Romania (Biogenis), Latvia (Cilmes Sunu Banka Sia), Italy (Famicord Italia) and Spain (Sevibe Cells). Additionally the group cooperates with independent partners from Croatia, Serbia and Bosnia&Hercegovina. PBKM collects and stores human stem cells isolated from blood taken from the umbilical cord after childbirth. Stored umbilical cord blood stem cells can be used to treat more than 70 diseases. Treatable diseases include leukemias, certain types of cancer, and immune system disorders. To date, almost 14,000 parents in Poland (and additionally 14,000 in other countries where the company is active) have decided to store their children’s umbilical cord blood in PBKM and its subsidiaries and related companies. PBKM is the only private stem cell bank in Poland to have supplied stem cells for transplants (all performed in Poland). PBKM is also one of the only two European private banks with AABB (formerly American Association of Blood Banks) accreditation, which provides proof of highest quality and credibility. 
 
PBKM’s revenues and profits have grown at an average annual rate exceeding 30% in the last few years. Together with its subsidiaries, the company achieved total sales of almost PLN 20 million (nearly €5 million) in 2008. Sales are expected to grow by 30% in 2009.

“The funds which PBKM has received from our new venture partner will finance the company’s expansion, including acquisitions, in Central and Eastern Europe, as well as promotion of the fully ethical practice of stem cell storage and usage. The investment experience of Enterprise Investors in our region will help PBKM build a strong capital group that not only uses the latest technologies, but also has best managerial practice,” said Jakub Baran, CEO of PBKM.     

“PBKM is a well-managed company that is successful on its market, and we believe in its further fast growth, for which we provided expansion financing. Besides, the market on which PBKM operates is relatively young and under-penetrated in Poland and other CEE countries. The number of newborns that have their stem cells stored in Poland is several times smaller than for example in Portugal or Greece. So the market in Poland and CEE is well-positioned for further growth,” said Rafał Bator, Enterprise Investors partner who heads EI’s venture capital fund.

Enterprise Investors has been active since 1990 and is one of the largest private equity and venture capital investors in Central and Eastern Europe. The firm manages seven private equity and venture capital funds totaling €1.7 billion. To date, these funds have invested €1.2 billion in 114 companies across a range of sectors and have exited 91 investments with total proceeds of €1.4 billion. EI has broad experience in investing in different segments of the Polish medical sector, with €87 million invested in pharmaceutical and medical companies to date.

Enterprise Venture Fund I is EI’s first venture capital fund, with total capital of         €100 million. It is the largest fund of its type in Poland and in the CEE region. EVF I’s investments range from €1 million to €5 million per project. The fund finances the expansion of small and medium-sized enterprises operating in different sectors in Poland and other Central and Eastern European countries. Prior to PBKM, EVF I has completed four transactions in consumer services and IT, totaling almost €10 million. 

For more information, please contact:
Rafał Bator, Partner, Enterprise Investors, tel. (+48 22) 458 86 88
Iwona Drabot, Public Relations Director, Enterprise Investors, tel. (+48 22) 458 85 00
Web link: pressrelease