Claxson Announces Sale of Chilevision to Bancard

Claxson Announces Sale of Chilevision to Bancard

Claxson Sells Chilevision to Bancard and Will Focus Its Next Investments On Pay TV

MIAMI, April 19 /PRNewswire-FirstCall/ -- Claxson Interactive Group Inc. (BULLETIN BOARD: XSONF) announced today the closing on April 14, 2005 of the sale of 100% of the share capital of Red de Television Chilevision S.A. ("Chilevision") to Bancard Inversiones Limitada and Inversiones Bancorp Limitada.

Claxson sold Chilevision after it successfully turned around its operation. Claxson intends to increase its focus on its Pay TV business and provide funds for investment opportunities in such division for Latin America and new markets.

The transaction valued Chilevision at $23.9 million, including financial and other debt assumed by the buyer of $5.6 million.

"The completion of the sale of Chilevision is very rewarding as it was made possible by the excellent results achieved by the channel over the last few years. In 2002, the channel was losing over $1.5 million a year. Two years later, in 2004, the channel made a profit of about $2.5 million. This proves that our investment and the management team we put together at Chilevision have been successful," said Roberto Vivo, Chairman and CEO of Claxson.

Over the last two years, Chilevision was the fastest-growing broadcast TV channel in Chile. Its sales grew by 61.0 %, ratings increased by 34.7%, and its advertising share increased as well.

"Four years ago, when Claxson took over the channel, we faced major challenges. The goal was to turn the channel into an active competitor in the industry and a relevant social player in Chile; it is clear that we have achieved both," said Vivo.

About Claxson

Claxson (BULLETIN BOARD: XSONF) is a multimedia company that provides and distributes branded entertainment content to Spanish and Portuguese audiences around the world. The company has a portfolio of well-known branded entertainment options distributed on multiple platforms, including pay TV, broadcast TV, radio and Internet. The company's headquarters are located in Buenos Aires and Miami, and it has a presence in the U.S. and all major Latin American countries, including without limitation Argentina, Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst, Inc.

Source: Claxson Interactive Group Inc.

CONTACT: Juan Iramain, Communications VP, Claxson, +011-54-11-4339-3701, or jiramain@claxson.com

Web site: http://www.claxson.com/

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