Central European Media Enterprises Secures 60% Ownership in Studio 1+1 in Ukraine

Central European Media Enterprises Secures 60% Ownership in Studio 1+1 in Ukraine

HAMILTON, Bermuda, Sept. 4 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) announced today that it has secured a 60% ownership in Studio 1+1 by completing the registration of a 42% direct ownership interest in Studio 1+1 LLC via a Ukrainian subsidiary company. Studio 1+1 LLC is the license company of the Studio 1+1 Group. With its existing 18% indirect ownership, CME now has secured control over the Studio 1+1 broadcasting licenses.

Michael Garin, CME's Chief Executive Officer, commented: "Today's announcement marks the successful completion of a process that CME initiated nearly two years ago. We believe that this change should allow us to exercise greater influence over the station management, allow CME to create stronger synergies among CME media assets in Ukraine and further improve our overall Ukrainian operations."

Ukraine is CME's largest market with a population of 46.7 million people. Per capita GDP was estimated to be US$ 2,027 in 2006 with a GDP growth rate in 2006 of six percent. According to CME estimates, the Ukrainian television advertising market grew by 25 - 30 percent in 2006 and was worth US$ 240 - 250 million.

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), Slovak Republic (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 regarding the impact of the acquisition of direct 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.

CONTACT: Romana Tomasova, Director of Corporate Communications of
Central European Media Enterprises, +44

Source: Central European Media Enterprises Ltd.

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Profile: International Entertainment