Private Media Group Takes a 17% Stake in Scandinavian Mainstream Online Video-On-Demand Business Horse Creek Entertainment

Private Media Group Takes a 17% Stake in Scandinavian Mainstream Online Video-On-Demand Business Horse Creek Entertainment

BARCELONA, Spain, Dec. 7 /PRNewswire-FirstCall/ -- Private Media Group Inc. (NASDAQ:PRVT) announced today the acquisition of 4 million shares together with an option to acquire another 2 million shares in Horse Creek Entertainment AB (publ), a mainstream content aggregator operating HomeTV (http://www.hometv.se/), the third biggest broadband Video-On-Demand (VOD) platform in Scandinavia.

In November 2007, Horse Creek Entertainment carried out two private offerings in advance of their planned IPO on a Stockholm Stock Exchange and Private participated in both offerings acquiring a total of 4 million shares together with a two year option to acquire another 2 million shares at a pre-determined price. The transactions were carried out through a share swap at an aggregate value of 1 million euro and through this investment Private controls 17.2% of the shares outstanding. Following Horse Creek Entertainment's two successful private offerings, its market value is estimated to be 7 million euro.

Charles Aperia, Chairman of Horse Creek Entertainment AB (publ) commented: "These two successful offerings guarantee our continued investment in top quality mainstream content, which plays a central role in our expansion of HomeTV in Scandinavia and into additional territories. The stake taken by Private is part of a close collaboration which ensures that both our companies can fully exploit not only the mainstream, but also the adult market by bringing Private's high quality content to mainstream consumers".

Berth Milton, CEO, President and Chairman of Private Media Group, Inc. added: "The investment in Horse Creek Entertainment is part of a wider strategic plan to increase our strength in the mainstream broadcast market and we are very excited about the future development of HomeTV". Mr. Milton continued: "Furthermore, we see a great business potential in combining Horse Creek Entertainment's role as a mainstream content aggregator with our access to 75% of Europe's fast growing IPTV market (1)".

   NOTES TO THE EDITOR:    Footnote   (1) According to Global IPTV Forecasts made by MRG (Multimedia Research       Group, Inc.), the number of global IPTV subscribers is estimated to       grow from 13.5 million in 2007 to 72.6 million in 2011. Europe       continues to be the biggest market for IPTV, with France significantly       leading the growth projections through its principal telcos. The       number of IPTV subscribers in Europe is forecasted to grow from       approximately 6.4 million end of 2007 to 30.4 million in 2011, a       compound annual growth rate of 48 percent.     About HomeTV & Horse Creek Entertainment AB  

Horse Creek Entertainment AB (publ) was founded in 1989. In addition to the HomeTV online VOD platform, the Company sells DVDs and screening rights (theatrical, video, Pay-TV and pay-per-view) to its library of more than 1,000 titles. With respect to HomeTV, the service has been offered since 2006 and the Company has developed a specific software for the service. HomeTV is one of the three leading online VOD services in Scandinavia and it offers more than 500 movie titles, including blockbuster Hollywood movies and Scandinavian top sellers. During 2008, the Company expects to expand its VOD service into additional territories, including: the Baltic States, Poland, UK and Ireland.

About Private Media Group

With its 40 year track record, NASDAQ listed Private Media Group is a brand-driven world leader in adult entertainment and distributes premium quality content globally via a wide range of platforms including; more than 783 million mobile telephone handsets, IPTV/VOD, broadband Internet, television broadcasting, DVDs and magazines. Private Media Group owns the worldwide rights to its extensive archive of top-quality content, and also licenses its Private and "Silver Girls" trademarks internationally for a select range of luxury consumer products.

Disclaimer

This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.

    For further information please contact:    Giles Hirst    Marketing Director    Private Media Group    Tel +34 93 590 70 70    giles.hirst@private.com  

First Call Analyst:
FCMN Contact:

Source: Private Media Group

CONTACT: Giles Hirst, Marketing Director of Private Media Group,
+34 93 590 70 70, giles.hirst@private.com

Web site: http://www.prvt.com/
http://www.hometv.se/

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Profile: International Entertainment