Central European Media Enterprises Acquires Cable Channel Galaxie Sport Serving the Czech and Slovak Republics

Central European Media Enterprises Acquires Cable Channel Galaxie Sport Serving the Czech and Slovak Republics

- Company Expands Beyond Terrestrial Television Through Addition of Cable Distribution Platform -

HAMILTON, Bermuda, Sept. 20 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME") (Nasdaq: CETV; Prague Stock Exchange) today announced that it has acquired 100% of Galaxie Sport, the leading cable sports channel serving the Czech Republic and the Slovak Republic, for CZK 118.7 million ($5.1 million) from PPF (Cyprus) Ltd. Galaxie Sport's offerings compliment CME's market leading television networks TV Nova in the Czech Republic and Markiza TV in the Slovak Republic.

Commenting on the announcement, Michael Garin, Chief Executive Officer of CME, said, "Following the success of our initial cable channel initiatives in Romania, this acquisition is an attractive opportunity to leverage our management and leading terrestrial network operations in the Czech Republic and Slovak Republic to expand into cable. As our markets evolve, we remain committed to seeking avenues to prudently expand into new media businesses to take full advantage of the growth of consumer purchasing power and commercial advertising across our footprint."

Galaxie Sport broadcasts high quality sports and sport-related programming in the Czech Republic and Slovak Republic. Galaxie Sport owns valuable broadcast license rights to some of the most popular sports programming in its markets including the National Hockey League, Premier League (British Football), Series A (Italian Football), Premiere Division (Spanish Football), the National Basketball Association, ATP Tennis tournaments, and motorcycle and automobile races. Galaxie Sport will also have certain broadcast rights to Forumla 1 programming as part of a TV Nova contract beginning in 2006. The channel also produces 16 sports shows weekly, as well as daily sports news programs in the Czech and Slovak languages.

The combined Czech Republic and Slovak Republic markets have a population of approximately 15.6 million people representing approximately 6 million households. Cable homes passed in the combined markets are approximately 1.8 million households. Galaxie Sport currently has carriage agreements with all of the largest cable distributors in the Czech Republic and Slovak Republic reaching over 700,000 subscribers.

The consideration includes the acquisition of two loans in the amount of CZK 69.2 million that had been due from Galaxie Sport to PPF. Galaxie Sport held no significant cash or debt (other than two loans mentioned above) at the date of acquisition. Galaxie Sport reported revenues of approximately CZK 106.2 million in 2004 and negative net operating income of CZK 14.0 million. These amounts were calculated in accordance with Czech Accounting Standards, which differ in certain material respects from US GAAP. (The dollar amount in this press release has been converted from the CZK at a rate of $1.00 = 23.36 CZK.)

Forward Looking Statements

This press release contains forward-looking statements, including statements regarding our business strategies and commitments. 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 rate of development of advertising markets in countries where we operate, general market and economic conditions in these countries as well as in the United States and Western Europe, the renewals of broadcasting licenses, the ability to acquire programming and the ability to attract audiences, the general regulatory environments where we operate and application of relevant laws and regulations.

CME is a TV broadcasting company with leading networks in six Central and Eastern European countries reaching an aggregate of approximately 90 million people. The Company's television stations are located in Croatia (Nova TV), Czech Republic (TV Nova, Galaxie Sport), Romania (PRO TV, Acasa, PRO Cinema), Slovakia (Markiza), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV."

For additional information, please visit http://www.cetv-net.com/ or contact:

Jonathan Lesko / Mike Smargiassi (Investors) Olga Shmuklyer (Press) Brainerd Communicators, Inc. +1-212-986-6667

Source: Central European Media Enterprises Ltd.

CONTACT: Jonathan Lesko, or Mike Smargiassi - Investors, or Olga Shmuklyer - Press, all of Brainerd Communicators, Inc. for Central European Media Enterprises Ltd., +1-212-986-6667

Web site: http://www.cetv-net.com/

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