Decision to discontinue further work on Project RedTheManagement Board of PCF Group S.A. with its registered office in Warsaw(the "Company") informs that on 10 September 2024 it decided todiscontinue further work on Project Red ("Project Red"), which theCompany's capital group (the "Group") intended to publish either in amodel with an external publisher or in a self-publishing model, i.e. bythe Group as publisher, with the Group's own funds.

The discontinuation of work on Project Red is the result of: (i) thefailure to obtain an external publisher to continue the development ofthis Project, with the Company's simultaneous inability to independentlyfinance further development work on the Project with the intention ofpublishing it in a self-publishing model; and (ii) the Company obtaininga new project to be developed in a model with an external publisher,about which the Company informed in the current report No. 19/2024 dated10 September 2024 ("Project Echo"), work on which currently requires theinvolvement of the development team previously dedicated to theproduction of Project Red.

The decision to discontinue further work results in the creation of thewrite-off as of 30 June 2024 in the amount of 100% of the value ofexpenditure incurred on Project Red and the write-off of the value ofexpenditure incurred on Project Red from the Company's accounting bookson the date of the decision to discontinue Project Red.

Making the above-mentioned write-off will affect:

-- reduction of the standalone financial result for the first half of2024 and reduction of the value of fixed assets presented in theCompany's standalone balance sheet as of 30 June 2024 by the amount ofPLN 8_#160;846 thousand, and

-- reduction of the consolidated financial result for the first half of2024 and reduction of the value of fixed assets presented in theconsolidated balance sheet of the Group as of 30 June 2024 by the amountof PLN 7_#160;719 thousand.

The creation of impairment losses is one-off and non-monetary and doesnot affect the value of the standalone and consolidated EBITDA result.

The financial data presented above are estimates and are subject toreview by an auditor and are therefore subject to change. The finalamounts of the write-off relating to Project Red will be presented inthe standalone and consolidated financial statements for the first halfof 2024, unless their presentation at an earlier date is required by law.