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Central European Media Enterprises to complete buy out of minority partners in Studio 1+1 in Ukraine
October 21, 2008, Hamilton, Bermuda
Central European Media Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) today announced that on October 17, 2008 it completed the purchase of the remaining 10% of the Studio 1+1 group following the exercise of its call option. CME now owns 100% of the Ukrainian television station.
Michael Garin, CME's Chief Executive Officer, commented: "This is the final step in achieving full control of Studio 1+1, one of the key objectives of our strategy in Ukraine. As a result, we expect to strengthen our performance and position in this market. Our goal for the future is to make Studio 1+1 the number one television station in Ukraine."
Adrian Sarbu, CME's Chief Operating Officer, added: "Studio 1+1 is a tremendous asset in what is by far our largest market with 47 million people. With the completion of this transaction we are now in a position to accelerate the execution of our strategic plan to improve the operating performance and profitability of the station. We have already taken the first steps on the way to become the number one television station in Ukraine. We have appointed two key executives in Ukraine, reset our programming strategy, repositioned our news show and established a new production unit. Studio 1+1 forms the core of our growth strategy for Ukraine and we look forward to expanding our presence in this market."
The 10% interest was acquired for cash consideration of US$109.1 million pursuant to the framework agreement signed in January 2008.
Launched in 1997, Studio 1+1 is one of the most popular national broadcasters in Ukraine, reaching almost 47 million people with an all-day audience share of 12% and prime time audience share of 14% in its 18+ target group during the first half of 2008.
CME is a broadcasting company operating leading networks in seven Central and Eastern European countries with an aggregate population of approximately 97 million people. CME's television stations are located in Bulgaria (TV2 and Ring TV), Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema, Nova Sport and MTV Czech), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia (Markíza, Nova Sport and MTV Czech), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International, Kino, Citi). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".
Forward Looking Statements
This press release contains forward-looking statements regarding the cost, timing and impact of the acquisition of ownership in Ukraine. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the general regulatory environments where we operate and application of relevant laws and regulations, the renewals of broadcasting licenses, our ability to implement strategies regarding sales and multi-channel distribution, the rate of development of advertising markets in countries where we operate, our ability to acquire necessary programming and the ability to attract audiences, our ability to obtain additional frequencies and licenses, and general market and economic conditions in these countries as well as in the United States and Western Europe.
For additional information, please contact:
Romana Wyllie
Vice President of Corporate Communications
Central European Media Enterprises
Krizeneckeho nam. 1078/5
152 00 Praha 5
Czech Republic
+420 242 465 525
romana.wyllie@cme-net.com
