Igor Kolomoisky Invests US$ 110 Million to Acquire an Interest in CME and Joins Company's Board of Directors

Igor Kolomoisky Invests US$ 110 Million to Acquire an Interest in CME and Joins Company's Board of Directors

- CME strengthens presence in Ukraine -

HAMILTON, Bermuda, Aug. 30 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) announced today that Igor Kolomoisky, a prominent Ukrainian businessman, has acquired 1,275,227 shares of CME's Class A Common Stock for cash consideration of US$ 110 million. The price per share has been determined on the basis of a weighted average trading price. This share purchase represents approximately 3.0% of CME's total outstanding Common Stock. In connection with this investment, Igor Kolomoisky has been invited to join the Board of Directors of CME.

Ronald S. Lauder, Non-Executive Chairman of CME, commented on the transaction: "I've known Igor Kolomoisky for some time and admire him as an extremely knowledgeable businessman with in-depth knowledge of Ukraine. Igor understands the importance of independent television not only in Ukraine, but throughout Eastern Europe. I'm delighted to welcome him as our newest Director, and I am confident he will help CME enormously."

Michael Garin, CME's Chief Executive Officer, said: "Investors should welcome this step as a major vote of confidence. The Apax investment last year underscored their view of the growth potential of CME as a company. Similarly, this investment by Mr. Kolomoisky should confirm CME's view that Ukraine will be a powerful growth engine for the Company in the future. As I said a few weeks ago when we released our second quarter earnings, 'We are convinced that in the next few years Ukraine will become the largest market in which we operate. We remain completely committed to Ukraine and will continue to aggressively but prudently pursue opportunities to further strengthen our presence there.' Today's announcement is a major indicator of that commitment."

Igor Kolomoisky said: "CME is one of the fastest growing and best managed media companies in the world and represents an exceptional investment opportunity for me. I am impressed with the company's management team, vision and disciplined financial approach. I look forward to working with my new Board colleagues and the CME management team to build upon the CME success story at a time when prospects are so bright both in Ukraine and in the other markets in which the company operates. Ronald Lauder has been a pioneer in helping the countries of Central and Eastern Europe to establish the independent media outlets so critical to the development of their economies and political systems. I've known Ronald for a number of years, and I'm delighted to now join him on the Board of CME."

CME is a TV broadcasting company operating leading networks in six Central and Eastern European countries with an aggregate population 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, PRO TV International, Acasa, PRO Cinema and Sport.ro), Slovakia (Markiza, Galaxie Sport), 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, including statements regarding the expected growth of the market in Ukraine, the future performance of our operations and 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 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 further information visit: www.cetv-net.com, or contact:   Romana Tomasova   Director of Corporate Communications   Central European Media Enterprises   +44 (0)20 7430 5357   romana.tomasova@cme-net.com    Appendix    Resume of Igor Kolomoisky  

Igor Kolomoisky is a prominent international businessman with diversified business interests, including ownership of significant industrial assets worldwide and particularly in CIS countries. He is currently a controlling shareholder and Supervisory Board Member of PrivatBank, one of the largest and best known commercial banks in Ukraine. Since 2003, he has been a major shareholder and member of the Supervisory Board of Ukrnafta, Ukraine's largest oil and natural gas extracting, processing and supplying company with a recent market cap of approximately US$ 3.6 billion. He co-founded oil supplier Sentosa Ltd in 1991 and continues to serve as Director of the company overseeing a full range of management responsibilities. Mr. Kolomoisky graduated from Dnipropetrovsk Metallurgical Institute in Ukraine with a degree in Metallurgical Engineering.

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Source: Central European Media Enterprises Ltd.

CONTACT: Romana Tomasova, Director of Corporate Communications of
Central European Media Enterprises, +44(0)20-7430-5357,
romana.tomasova@cme-net.com

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

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Profile: International Entertainment