Swedish media group Modern Times Group MTG AB divests Russian independent television broadcaster CTC Media Inc

Nordic Business Report, March 11, 2008

NORDIC BUSINESS REPORT-11 March 2008-Swedish media group Modern Times Group MTG AB divests Russian independent television broadcaster CTC Media Inc(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish media group Modern Times Group MTG AB (MTG) announced on Tuesday (11 March) that it has agreed to sell its Russian free-to-air television network DTV Group to the Russian independent television broadcaster CTC Media Inc (Nasdaq: CTCM) in a USD395m cash deal.

The deal will result in a net gain of approximately SEK1.9bn for MTG.

MTG holds a 39.5% stake in CTC Media.

DTV, based in Moscow, has 103 employees and reported sales of SEK269.4m in 2007. The channel is distributed through 28 owned and operated local TV stations, as well as a number of network affiliate partners, and reaches some 71% of all homes in Moscow and 60% of sampled homes nationwide.

"We were one of the first international companies to enter the Russian broadcasting market, and the development of DTV has demonstrated our commitment to investing in high growth emerging markets, as well as our successful track record of managing media assets in these markets," said Hans-Holger Albrecht, president and CEO of MTG.

"This transaction is intended to enable us to benefit from the synergies that exist in owning multiple broadcast channels across Russia and the CIS, in terms of content production and acquisition, distribution and sales," Albrecht added.

MTG, headquartered in Stockholm, Sweden, is a leading international entertainment broadcasting group with the second largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting is the largest free-to-air and satellite premium pay-TV operator in Scandinavia and the Baltics, and also operates channels in the Czech Republic, Russia, Hungary, Slovenia and the Balkans. MTG is listed on the OMX Nordic Exchange in Stockholm.

One British pound (GBP) is worth approximately 2.02 US dollars (USD). One British pound (GBP) is worth approximately 12.29 Swedish kronor (SEK).

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