Additional Information MCC Global N.V.

AMSTERDAM, August 1 /PRNewswire-FirstCall/ -- The Financial Markets Authority ("AFM") is responsible for the supervision and enforcement of the rules for financial reporting of securities issuing institutions (Act supervision of financial reporting "Wtfv"). In the context of this responsibility, the AFM has conducted an investigation of the annual accounts 2006 of MCC Global NV ("MCC"). Based on the outcome of this investigation, the AFM has made a recommendation to MCC with respect to four items of its annual accounts 2006.

1. Valuation of financial assets

The full write-down of MCC's interest in Latin Television Inc. ("LTV"), instead of reporting this interest against its market value of EUR 2,638,389, is not in conformity with the requirements of IAS 39.45, 39.46, 39.48, 39.48A and IAS 39 AG 71. As a result, the equity and the pre - tax results of MCC over 2006 have been presented EUR 2,638,389 too low.

In the annual accounts 2006 MCC has opted to fully write off its interest in LTV to nil, based on the assessment of the management of MCC of the fair value of this interest. On the basis of the reporting rules as applied by the AFM, however, an assessment of the fair value of shares should be based on the value of the shares as it follows from the listing. The trading volume of the shares are not a criterion in assessing the usefulness of the listing for assessing the fair value of the shares. The management of MCC conforms to the reporting requirements of the IFRS and is therefore required to make the recommended adjustment. The management of MCC will continue, however, to assess the fair value of MCC's interest in LTV also on the basis of other valuation methods than the value based on the listing.

2. Share-based remuneration

In its annual accounts 2006, MCC has reported the granting of 5 million shares to former members of the Supervisory Board and the Management Board as a debt in the amount of EUR 385,000. This is not in conformity with the requirements of IFRS 2.10. If these rules were applied correctly, the grant should have been reported as equity which would than have been increased by EUR 385,000 and the debt of MCC should have been EUR 385,000 lower.

3. Changes in equity

The overview showing the changes in equity as included in the annual accounts 2006 is not in conformity with the requirements of IAS 1.97 (c) on the following points:

a) the reporting of the issuance of 500,000 shares for "cash" in 2005, which was discovered only in 2006; b) the presentation of the composition of the item "issuance of shares" through "share based payments" in the amount of EUR 590,000 in 2006 in the item "share capital" in the amount of EUR 450,000 and the item "share premium" in the amount of EUR 140,000; and c) the presentation of the composition of the item "issuance of shares for cash" in the amount of EUR 1,291,000 in 2006 in the item "share capital" for EUR 720,000 and the item "share premium" for EUR 571,000.

Ad a:

This issuance which was discovered after the annual accounts 2005 were adopted and has subsequently been accounted for in the annual accounts 2006 by increasing the item "shares issued for cash" by 500.000 shares to 8.500.000 shares in the movement schedule of the number of shares in 2005. In the consolidated statement of equity this has been accounted for by increasing the item 'issuance of shares for cash' by EUR 50.000 in 2006. The latter amount should have been presented in the consolidated statement of equity in the item 'issuance of shares' in 2005.

Attached is an overview of the changes in equity for 2006 in which the recommendations of the AFM as mentioned in this press release have been processed.

                           Share    Share    Cumulative   Other  Total Equity
                          capital  premium   translation reserves
                                              reserve
    At Januar 1, 2005    6,141,710 30,136,456  68,349  (5,504,505) 25,214,384

    Issuance of shares   1,848,017 4,725,799        -           -   6,573,816
    Conversion element
    of convertible note    150,000    82,000        -           -     232,000
    Issuance Costs
    recorded directly to
    equity                       -  (273,051)       -           -   (273,051)
    Results for the year         -         -        -           -   1,604,814
    Currency translation
    adjustment                   -         -   92,841           -      92,841
    Other                        -         -        -           -         246
    Appropopriation of
    results                      -         -        -  (6,240,440)          -

    At December 31, 2005 8,139,727 34,671,204 161,190 (11,744,945) 33,445,050

    Issuance of shares
    for cash               900,001    341,000      -            -   1,241,001
    Issuance of shares
    via share based
    payments               220,000    370,000      -            -     590,000
    Issuance of share
    issue rights via
    share based payments         -          -      -      385,000     385,000
    Issuance of shares
    as conversion
    element of
    convertible note       530,000          -      -           -     530,000
    Results for the year         -          -      -           - (37,088,359)
    Currency translation
    adjustment                   -          - 56,007           -       56,007
    Appropopriation of
    results                      -          -      -    1,604,869           -

    At December 31, 2006 9,789,728 35,382,204 217,197  (9,755,076)  (841,301)


    (continued)

                       Unappropriated results    Attributable to  Minority
                                                 Shareholders     interest
    At Januar 1, 2005              (5,628,619)   25,213,391        993

    Issuance of shares                      -     6,573,816          -
    Conversion element of
    convertible note                        -       232,000          -
    Issuance Costs recorded
    directly to equity                      -      (273,051)         -
    Results for the year            1,604,869     1,604,869        (55)
    Currency translation
    adjustment                              -        92,841          -
    Other                                   -             -        246
    Appropopriation of results      6,240,440             -          -

    At December 31, 2005            2,216,690    33,443,866      1,184

    Issuance of shares for cash             -     1,241,001          -
    Issuance of shares via share
    based payments                          -       590,000          -
    Issuance of share issue
    rights via share based
    payments                                -       385,000          -
    Issuance of shares as
    conversion element of
    convertible note                        -       530,000          -
    Results for the year          (37,087,175)  (37,087,175)    (1,184)
    Currency translation
    adjustment                              -        56,007          -
    Appropopriation of results     (1,604,869)            -          -

    At December 31, 2006          (36,475,354)     (841,301)         -


    4. Cash flow overview / transactions in kind

The conversion of a debt of EUR 520,000 and a debt of EUR 70,000 in equity through the issuance of a total number of 2.2 million shares should not have been reported as an incoming cash flow from financing activities and an outgoing cash flow from operational activities. This is not in conformity with IAS 7.44 (c). If these requirements would have been applied in a correct manner, the incoming cash flow from financing activities for 2006 would have been presented EUR 590,000 lower and the cash flow from operations would have been presented EUR 590,000 higher.

Attached is an overview of the changes in cash flow for 2006 in which the recommendations of the AFM as mentioned in this press release have been processed.

                                               Year ending   Year ending
                                                   2006          2005
    CASH FLOWS OPERATING ACTIVITIES

    Net Result Before Taxes and
    Minority Interest                           (36,600,976)  3,337,738

    Adjustment to reconcile
    net profit to net cash
    used in operating activities:
    Depreciation expense of
    property, plant and equipment                     2,030       1,345
    Goodwill Impairment Charge                   17,537,836           -
    Valuation change of financial
    assets at fair value
    through profit and loss                      14,356,681   1,699,399
    Impairment Loans and receivables              1,742,729           -
    Interest costs                                    3,076           -
    Loss(Gain) on foreign exchange                   11,492    (132,500)
    Disposal                                        (20,000)          -
    Changes in assets and liabilities:
    Accounts and Interest receivable, net            52,076   5,944,848
    Other assets                                   (195,541)   (126,885)
    Accounts payable                                629,970     456,120
    Accrued expenses and other liabilities        3,359,027  (1,196,491)
    Taxation                                        (64,017)   (151,068)
    Payables to prior management
    and supervisory board                          (227,800)          -
    Receipt of intangible fixed asset
    investments, net                                      - (13,857,972)
    Valuation change of financial
    assets at fair value                                  -   1,308,603
    Minority interest                                     -         246
    Net cash acquired with subsidiary
    undertaking                                           -      77,431
    Loans to participations during
    the financial year                             (217,453) (1,525,276)
    Net cash provided by (used in)
    operating activites                             369,130  (4,164,462)

    CASH FLOWS FROM INVESTING ACTIVITIES
    Investments property, plant and equipment             -      (6,091)
    Net cash provided by (used in) investing activities   -      (6,091)

    CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from issuance of stock               1,241,001   3,520,000
    Proceeds from loan, net of
    conversion costs                                530,000     232,000
    Issuance of shares via share based payments           -    (273,052)
    Net cash privided by (used in)
    financing activities                          1,771,001   3,478,948

    Effect of exchange rate on translation           56,007      92,841

    Net increase (decrease) in cash
    and cash equivalents                          2,196,138    (598,764)
    Cash and cash equivalents,
    beginning of period                              74,405     673,170
    Cash and cash equivalents, end of period      2,270,543      74,406

SOURCE MCC Global NV