B ORROWINGS ( CONTINUED )

10.75% Senior Notes due 2017 and 7.875% Senior Notes due 2018

On November 19, 2009 the Group via its wholly owned subsidiary, TVN Finance Corporation II AB, issued EUR 405,000 Senior Notes with an annual interest rate of 10.75% (“10.75% Senior Notes due 2017”). The 10.75% Senior Notes due 2017 were issued at a purchase price of 98.696% for a total consideration of EUR 399,719 (PLN 1,635,209). The 10.75% Senior Notes due 2017 issued in November 2009 are carried at amortized cost using an effective interest rate of 12%.

On March 10, 2010 the Group via its wholly owned subsidiary, TVN Finance Corporation II AB, issued to ITI Media Group EUR 148,000 of additional 10.75% Senior Notes due 2017 as part of the purchase price for the remaining 49% equity interest in Neovision Holding B.V. (currently DTH Poland Holding Coöperatief U.A.). Additional 10.75% Senior Notes due 2017 were issued to ITI Media Group at a purchase price of 100.000%. The 10.75% Senior Notes due 2017 issued in March 2010 are carried at amortized cost using an effective interest rate of 11.5%.

On April 30, 2010 the Group via its wholly owned subsidiary, TVN Finance Corporation II AB, issued to ITI Media Group EUR 40,000 of additional 10.75% Senior Notes due 2017 as the remaining part of the purchase price for the 49% equity interest in Neovision Holding B.V. The 10.75% Senior Notes due 2017 issued in April 2010 are carried at amortized cost using an effective interest rate of 11.3%.

Total nominal value of 10.75% Senior Notes due 2017 issued in November 2009, March 2010 and April 2010 is EUR 593,000, they pay interest semi-annually (on May 15 and November 15) beginning May 15, 2010 and mature on November 15, 2017.

On November 19, 2010 the Group via its wholly owned subsidiary, TVN Finance Corporation III AB, issued EUR 175,000 Senior Notes with an annual interest rate of 7.875% (“7.875% Senior Notes due 2018”). The 7.875% Senior Notes due 2018 were issued at a purchase price of 100.000% for a total consideration of PLN 689,255. The 7.875% Senior Notes due 2018 are carried at amortized cost using an effective interest rate of 8.6%, they pay interest semi-annually (on May 15 and November 15) beginning May 15, 2011 and mature on November 15, 2018.

The 10.75% Senior Notes due 2017 and 7.875% Senior Notes due 2018 are senior unsecured obligations and are governed by a number of covenants including, but not limited to, restrictions on the level of additional indebtedness, payment of dividends, sale of assets and transactions with affiliated companies. The 10.75% Senior Notes due 2017 and 7.875% Senior Notes due 2018 are fully and unconditionally guaranteed by the Company and its subsidiaries Grupa Onet.pl S.A., Grupa Onet Poland Holding B.V., ITI Neovision Sp. z o.o., DTH Poland Holding Coöperatief U.A. and Mango Media Sp. z o.o.

The fair value of the 10.75% Senior Notes due 2017, excluding accrued interest, as at March 31, 2011 was estimated to be PLN 2,676,439 or EUR 667,125. The fair value of the 7.875% Senior Notes due 2018, excluding accrued interest, as at March 31, 2011 was estimated to be PLN 719,635 or EUR 179,375. Fair values of 10.75% Senior Notes due 2017 and 7.875% Senior Notes due 2018 reflect their market price quoted by Reuters based on the last value date on March 31, 2011. The 10.75% Senior Notes due 2017 and 7.875% Senior Notes due 2018 are quoted on the Luxembourg Stock Exchange.

TVN S.A. Notes to the Interim Condensed Consolidated Financial Statements

(Expressed in PLN, all amounts in thousands, except as otherwise stated)

These notes are an integral part of these interim condensed consolidated financial statements.

14. BORROWINGS (CONTINUED)

PLN Bonds due 2013

On May 26, 2008 the Group entered into an agreement with Bank Pekao S.A., Bank Handlowy w Warszawie S.A. and BRE Bank S.A. to conduct a Bond Issue Program (“Program”). The Program enables the Group to issue bearer, unsubordinated and unsecured bonds (“PLN Bonds due 2013”) with a maximum total nominal value of PLN 1 billion at any time. The Program can be extended up to a nominal value of PLN 2 billion. On June 23, 2008 the Group completed the first issue of PLN Bonds due 2013 with a total nominal value of 500,000 and with a variable interest rate of 6 month WIBOR plus 2.75% per annum. The interest is payable semi-annually starting December 14, 2008. The PLN Bonds due 2013 are due for repayment on June 14, 2013. The PLN Bonds due 2013 are unsecured obligations and are governed by a number of covenants including restrictions on disposal or inadequate use of assets. The PLN Bonds due 2013 are carried at amortized cost using an effective interest rate of 7.1%.

The Group has an option to redeem all or 50% of the PLN Bonds due 2013 on June 14, 2011 or on June 14, 2012 at a redemption price of 102% or 101% of the nominal value respectively. The Group assessed that the early prepayment options are closely related to the economic characteristics of the host contract (PLN Bonds due 2013) as the option exercise price is close on each exercise date to the amortized cost of the PLN Bonds due 2013. Consequently, the Group did not separate the embedded derivative.

On December 23, 2010 the Group acquired and redeemed PLN Bonds due 2013 with nominal value of 359,000. These PLN Bonds due 2013 were purchased at a price of 102% of the principal amount plus the aggregate amount of accrued interest on the these PLN Bonds due 2013 between December 15, 2010 up to December 23, 2010.

In February 2011 the Group acquired and redeemed PLN Bonds due 2013 with total nominal value of 135,400. These PLN Bonds due 2013 were purchased at a price of 102.85% of the principal amount plus the aggregate amount of accrued interest on the these PLN Bonds due 2013 between December 15, 2010 up to the redemption date.

Revolving guarantee facility

On December 17, 2010 the Group entered into revolving guarantee facility agreement with Bank Pekao S.A. The revolving guarantee facility is a PLN 200,000 multicurrency revolving guarantee facility available in EUR, USD and/ or PLN, with a termination date on December 17, 2012. It may be used in an amount of up to PLN 200,000 for guarantees and letters of credit with tenors not exceeding twelve months from issuance or up to PLN 100,000 for guarantees with maturity longer than twelve months but not exceeding thirty six months. The revolving guarantee facility is secured with cash collateral for 100% of each guarantee (see Note 12).

As of March 31, 2011 the revolving guarantee facility had been used for the bank guarantees issued at 108,527 (December 31, 2010: 107,285).

TVN S.A. Notes to the Interim Condensed Consolidated Financial Statements

(Expressed in PLN, all amounts in thousands, except as otherwise stated)

These notes are an integral part of these interim condensed consolidated financial statements.