CTC Media: Financial Results for the Fourth Quarter and Full Year Ended December 31, 2009

CTC Media: Financial Results for the Fourth Quarter and Full Year Ended December 31, 2009

MOSCOW, February 26, 2010/PRNewswire-FirstCall/ -- CTC Media, Inc. ("CTC Media" or "the Company") (NASDAQ: CTCM), Russia's
leading independent media company, today announced its unaudited consolidated
financial results for the fourth quarter and twelve months ended
December 31, 2009.

Three Months Twelve Months
Ended December 31, Ended December 31,
(US$ 000's except 2008 2009 Change 2008 2009 Change
per share data)

Total operating
revenues $187,349 $180,507 -3.7% $640,171 $506,113 -20.9%

Total operating
expenses (before
non-recurring
items)[1] (94,636) (96,460) 1.9% (373,307) (306,311) -17.9%

Total operating
expenses (327,319) (143,787) -56.1% (605,990) (353,638) -41.6%

Adjusted OIBDA
[2],[3] 96,539 87,382 -9.5% 280,244 211,256 -24.6%
Adjusted OIBDA
margin [2,3] 51.5% 48.4% 43.8% 41.7%

OIBDA [2] (136,144) 40,055 129.4% 47,560 163,929 244.7%
OIBDA margin[2] (72.7%) 22.2% 7.4% 32.4%

Adjusted net
income
attributable
to CTC Media, Inc.
stockholders [3] 64,637 64,466 -0.3% 176,134 143,967 -18.3%
Adjusted diluted
earnings per
share [3] $0.41 $0.41 - $1.11 $0.91 -18.0%


Net income/(loss)
attributable to
CTC Media, Inc.
stockholders (89,042) 20,887 123.5% 22,454 100,389 347.1%

Diluted earnings
per share ($0.56) $0.13 123.2% $0.14 $0.64 355.4%

FINANCIAL HIGHLIGHTS

- Total revenues up 4% year-on-year in ruble terms in the fourth quarter
and down 1% for the full year

- Russian advertising revenues up 2% year-on-year in ruble terms in the
fourth quarter and down 3% for the full year

- Organic operating expenses[4] up 13% year-on-year in ruble terms in the
fourth quarter and flat for the full year

- Adjusted OIBDA of $87.4 million with an adjusted OIBDA margin of 48.4%
in the fourth quarter, and $211.3 million with an adjusted OIBDA margin
of 41.7% for the full year

- Net cash position of $95.2 million at year-end

- Increase in national television advertising market share in Russia
year-on-year to 19.5% from 17.5% for the full year

- Board of Directors approved $0.065 per share cash dividend (or $10
million in the aggregate) to be paid in March 2010, as first installment
of an intended total of $40 million in cash dividends to be paid in 2010

OPERATING HIGHLIGHTS

- Average full year combined 4+ audience share for the three networks in
Russia up year-on-year to 13.2% from 13.0%

- Average full year target audience shares up year-on-year for all three
Russian networks with highest ever shares for Domashny and DTV

- Acquisition of 8 regional stations in 6 Russian cities

- Year-on-year increases in technical penetration of CTC,
Domashny and DTV networks in Russia to 90.7% (from 87.5% in 2008),
76.4% (from 71.0% in 2008), and 68.4% (from 61.0% in 2008),
respectively

- Launch of CTC international channel in North America in December 2009

Anton Kudryashov, Chief Executive Officer of CTC Media,
commented: "We outperformed the Russian TV advertising market throughout 2009
and further increased our audience and advertising market shares. Our Russian
advertising revenues were up 2% year-on-year in ruble terms in the fourth
quarter and down only 3% for the full year, despite the impact of the
economic recession on advertising budgets. This compares with an estimated
12% decline for the Russian TV advertising market in the fourth quarter and
an 18% decline for the full year. We also managed to keep our underlying
organic operating cost base flat year-on-year in ruble terms for the full
year while, at the same time, raising the technical penetration and target
audience shares of all three of our Russian networks. This efficient cost
control enabled us to deliver underlying OIBDA margins of 48% in the quarter
and 42% for the full year, when excluding non-recurring items."

"Approximately 85% of our forecast full year 2010 Russian
national inventory has now already been booked under forward contracts at
approximately the same average prices as in 2009. The pricing environment is
currently showing signs of improvement moving forward for later in the year
and, while we do not expect to repeat the level of market outperformance that
we achieved in 2009, our target audience shares have continued to grow so far
in 2010. As indicated previously, we are also now substantially increasing
our investments in the programming schedules and network coverage of our DTV
and Domashny channels, in order to unlock their considerable future
development potential."

"We are a growth company and are therefore committed to
investing in the development and expansion of our operations. The cash
dividend declared by our Board demonstrates our philosophy to return an
appropriate amount of cash to shareholders when we do not need all of the
cash we are generating for investments in the future growth of the business."

Operating Review

Revenues[5]

Three Months Twelve Months
Ended December 31, Ended December 31,
(US$ 000's) 2008 2009 Change 2008 2009 Change

Operating revenues:
CTC Network $ 115,547 $115,388 -0.1% $412,614 $326,006 -21.0%
Domashny Network 19,166 18,676 -2.6% 64,142 50,648 -21.0%
DTV Network 13,463 13,265 -1.5% 35,868 40,550 13.1%
CTC Television
Station Group 27,669 24,342 -12.0% 95,033 64,014 -32.6%
Domashny
Television
Station Group 4,655 3,150 -32.3% 16,003 8,810 -44.9%
DTV Station
Television Group 1,734 1,276 -26.4% 5,069 3,858 -23.9%
CIS Group 4,950 3,727 -24.7% 10,930 11,020 0.8%
Production Group 164 682 315.9% 512 1,207 135.7%
Total operating
revenues $187,349 $180,507 -3.7% $640,171 $506,113 -20.9%

Total operating revenues were down 4% year-on-year in the fourth quarter
and 21% for the full year in US dollar terms, which reflected the
year-on-year decline in the advertising markets, as well as the weakening of
the Company's principal operating currency (the Russian ruble) against its US
dollar reporting currency. This depreciation had a negative impact of
approximately 8% on the Company's ruble-denominated sales in the fourth
quarter and 21% for the full year 2009. In ruble terms, total operating
revenues were up 4% year-on-year in the quarter and were approximately flat
for the full year. 2009 results include full year contributions from DTV
Group in Russia and Channel 31 Group in Kazakhstan for the first time,
following the acquisition of both businesses during the first half of 2008.

CTC Media's Russian advertising sales accounted for 94% of fourth quarter
and full year 2009 revenues and were up 2% year-on-year in the quarter and
down only 3% for the full year in ruble terms. This compared with an
estimated 12% year-on-year decline in the Russian TV advertising market in
the fourth quarter and an 18% decline for the full year, according to Video
International. The Company reported increased target audience viewing shares
and advertising market shares both in the quarter and for the full year.

The CIS Group, which accounted for 2% of full year revenues,
reported a 25% year-on-year decline in sales in the fourth quarter but 1%
growth for the full year. This reflected the mixed impact of higher
advertising rates and sellout ratios, lower audience shares, the year-on-year
depreciation of the Kazakh tenge against the US dollar, and the fact that
Channel 31 in Kazakhstan was acquired and consolidated only from the first
quarter of 2008. Channel 31 generated over 90% of CIS Group revenues in the
quarter and for the full year.

Share of Viewing in Target Demographics

Average Audience Shares (%)
Q4 2008 Q3 2009 Q4 2009 FY 2008 FY 2009

CTC Network
(all 6-54) 12.3 12.2 12.7 11.8 12.2
Domashny Network
(women 25-60) 2.7 3.2 2.9 2.8 2.9
DTV Network
(all 25-54) 2.3 2.3 2.1 2.1 2.2
Channel 31
(all 6-54) 16.6 11.6 10.4 13.4 11.6

Each of the Russian networks delivered higher average target
audience shares for the full year 2009 than in 2008, primarily reflecting
further improvements in programming performance.

The flagship CTC Network's average target audience share was
up year-on-year and quarter-on-quarter, and the 13.5% average target audience
share for November 2009 was the highest monthly average achieved since June
2006. Major audience share drivers in the fourth quarter included new seasons
of the 'Daddy's Girls' comedy series, as well as the premiers of 'Margosha',
which is based on the Argentine 'LaLola' format, and the 'Voroniny' comedy
series, which is based on hit U.S. format 'Everybody Loves Raymond'.

Domashny's target audience share was also up year-on-year in
the fourth quarter and for the full year following the continued success of
long-running series such as 'Atlantida' and 'Desperate Housewives', which
were supported by a high-rating line-up of movies and documentaries. New
locally produced comedy sketch show 'One for All' was launched in November
2009 and attracted solid viewing shares in its key access prime-time weekday
slot.

The DTV channel has been focused on the 25-54 year-old target
audience group since January 2009, and its average share of viewing in this
target group grew on a full-year basis following the success of the locally
produced 'Marital Fiction' show and the late prime-time slots for Russian and
foreign criminal investigation and action series.

The decline in Channel 31's audience share was primarily due
to changes in the TNS audience measurement panel and the introduction of
stricter local language programming requirements. Channel 31 did however
maintain its position as the second-most watched channel in Kazakhstan in its
target demographic, "all 6-54".

Expenses

Three Months Twelve Months
Ended December 31, Ended December 31,
(US$ 000's) 2008 2009 Change 2008 2009 Change

Operating expenses:
Direct operating
expenses $10,206 $14,574 42.8% $37,514 $37,422 -0.2%
Adjusted selling
general &
administrative
expenses[6] 22,951 19,276 -16.0% 93,414 72,211 -22.7%
Amortization
of programming
rights 56,327 57,514 2.1% 220,557 178,392 -19.1%
Amortization
of sublicensing
rights and own
production cost 1,326 1,761 32.8% 8,443 6,832 -19.1%
Depreciation &
amortization 3,826 3,335 -12.8% 13,380 11,454 -14.4%
Total operating
expenses (before
non-recurring
items) $94,636 $94,460 1.9% $373,307 $306,311 -17.9%
Stock-based
compensation
expense related
to settlement of
litigation
against former
CEO - $28,588 - $28,588
Intangible asset
impairment
charge $232,683 $18,739 -91.9% $232,683 $18,739 -91.9%
Total operating
expenses $327,319 143,787 -56.1% $605,990 353,638 -41.6%

Total operating expenses, before non-recurring items, were up 2%
year-on-year in the fourth quarter in US dollar terms and up 10% for the same
period in Russian ruble terms, which primarily reflected the year-on-year
increase in programming amortization costs and direct operating expenses.
Total operating expenses, before non-recurring items, were down 18%
year-on-year for the full year in US dollar terms but up 4% in Russian ruble
terms, which reflected the year-on-year depreciation of the Russian ruble and
Kazakh tenge, the Company's principal operating currencies, against the US
dollar reporting currency.

Organic operating expenses were up 13% year-on-year in ruble terms for
the fourth quarter and flat for the full year. The increase in organic
operating expenses in the fourth quarter of 2009 was due to the same factors
mentioned above.

Direct operating expenses were up 43% year-on-year in the fourth quarter
but flat for the full year in US dollar terms. The increase in the fourth
quarter primarily reflected $4.8 million of stock-based compensation expenses
arising from the granting of options in October and December 2009 under the
Company's 2009 Stock Incentive Plan.

Selling, general and administrative expenses were down 16% year-on-year
in the fourth quarter and down 23% for the full year in US dollar terms when
excluding a one-off stock-based compensation expense of $28.6 million. That
one-off expense relates to a payment made under a share appreciation rights
agreement with the Company's former CEO and Board member Alexander Rodnyansky
in settlement of legal actions brought by the Company against Mr. Rodnyansky,
which was recognized in the fourth quarter of 2009.

Total stock-based compensation expenses were $36.0 million in the fourth
quarter (Q4 2008: $4.2 million) and $47.6 million for the full year (2008:
$16.1 million).

Programming expenses were up 2% year-on-year in the fourth quarter but
down 19% for the full year in US dollar terms. The year-on-year increase in
programming costs in the fourth quarter reflected a relatively more expensive
programming mix. The decrease in programming costs for the full year
reflected the depreciation of the Russian ruble against the US dollar
reporting currency, as well as changes made to the amortization rates for
certain types of Russian-produced programming in order to better reflect
anticipated revenue generation patterns. These changes resulted in a $5.9
million year-on-year reduction in amortization expenses for the full year.

Sublicensing and own production costs were up 33% year-on-year in the
fourth quarter but down 19% for the full year. In the fourth quarter, the
increase in sublicensing and own production costs reflected the increase in
the corresponding revenues. The decrease in the amortization of sublicensing
rights and own production costs when comparing full-year 2009 to 2008 was due
primarily to the decreased cost of internally produced series and sitcoms
sold to a third party in Ukraine. The decrease in cost was due primarily to
the depreciation of the Russian ruble against the US dollar.

As a result of the latest annual year-end asset impairment test, the
Company has reported an $18.7 million non-cash impairment charge in the
fourth quarter of 2009. The charge related to the impairment of a number of
local broadcasting licenses in Russia resulting from a re-weighting of the
cities in the TNS audience measurement panel.

CTC Media recognized an aggregate $232.7 million non-cash
intangible asset impairment charge in the fourth quarter of 2008, of which
$95.6 million related to the broadcasting licenses and trademarks of DTV
Group in Russia, $132.9 million related to the broadcasting licenses and
goodwill balances of Channel 31 in Kazakhstan, and $4.2 million related to
the licenses of the broadcasting group in Moldova. The impairments reflected
the changes in market conditions and revisions to the outlooks for the
businesses compared to when the assets were acquired.

Consolidated adjusted OIBDA was $87.4 million in the fourth
quarter (Q4 2008: $96.5 million) and $211.3 million for the full year (2008:
$280.2 million). The Company therefore reported an adjusted OIBDA margin of
48.4% in the quarter (Q4 2008: 51.5%) and 41.7% for the full year (2008:
43.8%).

Group depreciation and amortization charges decreased by 13%
year-on-year to $3.3 million in the quarter (Q4 2008: $3.8 million) and by
14% to $11.5 million for the full year (2008: $13.4 million) and adjusted
consolidated operating income totaled $84.0 million in the quarter (Q4 2008:
$92.7 million) and $199.8 million for the full year (2008: $266.9 million).

Net interest income was $2.3 million in the fourth quarter of
2009 compared to a net interest expense of $2.0 million in the same period of
2008, while net interest expenses fell 73% year-on-year to $0.9 million
(2008: $3.2 million) for the full year following scheduled repayments on the
Company's US$135 million syndicated loan in 2008 and 2009.

Adjusted pre-tax income therefore grew by 18% year-on-year to
$87.6 million in the fourth quarter (Q4 2008: $74.3 million) and totaled
$196.0 million for the full year (2008: $237.1 million).

The adjusted effective tax rate in 2008 was 21% for the full
year and 2% for the fourth quarter including the one-off impact on the
Company's deferred taxes assets and liabilities of the decrease in the
statutory income tax rates in Russia (from 24% to 20%) and Kazakhstan (from
30% to 20%) from the beginning of 2009, which resulted in the recognition of
a $19.0 million income tax benefit in the fourth quarter of 2008. Net of this
impact, the adjusted effective tax rate in 2008 would have been 29% for the
full year and 28% for the fourth quarter. The lower adjusted effective tax
rate of 24% in the fourth quarter and 25% for the full year of 2009 primarily
reflected the decrease in statutory tax rates effective from January 1, 2009.
The tax rate also includes the $2.0 million accrual of tax payments that will
fall due in 2010 on the $40 million of dividend payments to be paid in 2010.

Adjusted net income attributable to CTC Media, Inc.
stockholders therefore decreased year-on-year to $64.5 million in the fourth
quarter (Q4 2008: $64.6 million) and amounted to $144.0 million for the full
year (2008: $176.1 million). Adjusted fully diluted earnings per share
amounted to $0.41 in the quarter (Q4 2008: $0.41) and $0.91 for the full year
(2008: $1.11).

Cash Flow

The Company's net cash flow from operating
activities totaled $132.9 million for the full year 2009 (2008: $185.9
million) and reflected the net effect of lower advertising sales and lower
spending for programming and sublicensing rights in 2009. The cash flow from
operating activities was impacted by the $29.4 million cash payment made in
December 2009 in part settlement of litigation brought by CTC Media against
its former CEO.

Cash used in investing activities totaled
$81.7 million for the full year 2009 (2008: $419.0 million) and included the
acquisition of regional television stations in Russia for a total cash
consideration of $14.6 million, $11.0 million of earn-out payments related to
the acquisitions of the Costafilm and Soho Media companies in 2008, purchases
of equipment and software for the Company's new digital broadcasting center
in Moscow and $39.8 million of cash placed in short-term deposits.

Cash used for financing activities amounted
to $62.5 million for the full year (cash provided by financing activities for
2008: $20.6 million). This included a $62.0 million part repayment of the
Company's $135 million syndicated loan, which was drawn down in July 2008 in
order to finance the acquisition of DTV Group. Also, in 2009, the Company
received $3.4 million in proceeds from exercise of share appreciation rights
by its former CEO.

The Company's cash and cash equivalents and short-term investments
amounted to $123.5.4 million at December 31, 2009, compared to $98.1 million at
the end of 2008.

Borrowings

The Company's total borrowings and accrued
interest amounted to $28.3 million at the end of the year, compared to $90.6
million at the end of 2008. The Company therefore had a net cash position,
which is defined as cash and cash equivalents and short-term deposits less
interest-bearing liabilities, of $95.2 million at the end 2009, compared to a
net cash position of $7.5 million at the end of 2008. The Company intends to
repay the remaining $28.3 million balance under its $135 million syndicated
loan facility on March 22, 2010.

Dividends

The CTC Media Board of Directors has
announced its intention to pay an aggregate of $40 million in cash dividends
in 2010. The payment of the first installment of $0.065 per outstanding share
of common stock, or $10 million in total, has been approved by the Board. The
record date for this first installment is March 10, 2010 and the payment date
is March 31, 2010. The Board has also announced its intention to pay the
three remaining $10 million installments in each of June, September and
December 2010. While it is the Board's current intention to declare and pay
these three future installments, there can be no assurance that such
installments will in fact be declared and paid. Any such declaration is at
the discretion of the Board and will depend upon factors such as CTC Media's
earnings, financial position and cash requirements.

2010 Outlook

CTC Media has now contracted approximately
85% of its forecast full year 2010 Russian national inventory under forward
contracts at approximately the same average price levels as in 2009. CTC
Media expects to continue to outperform the Russian advertising market in
2010, but not by the level achieved in 2009. The pricing environment is
currently showing signs of improvement moving forward for later in the year
and CTC Media's target audience shares have continued to grow so far in 2010.

CTC Media is also substantially increasing
its investments in the development of the DTV and Domashny channels in 2010,
and will invest throughout the year to further enhance the programming
schedules and expand the coverage of these two networks, in order to
significantly accelerate their development. As a result of these and other
investments, the Company's operating expenses are expected to increase by
approximately 15% for the full year based on average 2009 ruble / dollar
exchange rates, when excluding the non-recurring impairment charges and
stock-based compensation expenses in 2009. The year-on-year increase in
operating expenses is expected to be significantly weighted to the first half
of the year. CTC Media's capital expenditures are expected to reach up to $40
million in 2010 as a result of the establishment of a unified digital
play-out facility in Moscow, the ongoing digitalization of the Company's
content library, the upgrading of broadcasting equipment and the planned move
to a new principal office location in Moscow.

Conference Call

The Company will host a conference call to discuss its 2009
fourth quarter and full year financial results today, Friday, February 26,
2010, at 9:00 a.m. ET (5:00 p.m. Moscow time, 2:00 p.m. London time). To
access the conference call, please dial +1 718 247 0886 (US/International) or
+44(0)20-7806-1968 (UK/International). The pass code for the call is
2189494. A live webcast of the conference call will also be available via the
investor relations section of the Company's corporate web site -
http://www.ctcmedia.ru/investors. The webcast will also be archived on the
Company's web site for two weeks.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are
prepared and presented in accordance with US GAAP, the Company uses the
following non-GAAP financial measures: OIBDA (on a consolidated and segment
basis), OIBDA margin and the adjusted measures described below. The
presentation of this financial information is not intended to be considered
in isolation or as a substitute for, or superior to, financial information
prepared and presented in accordance with GAAP. For more information on these
non-GAAP financial measures, please see the accompanying financial tables
included at the end of this release.

The Company uses these non-GAAP financial measures for
financial and operational decision making and as a means to evaluate
period-to-period comparisons. The Company believes that these non-GAAP
financial measures provide meaningful supplemental information regarding its
performance and liquidity by excluding certain expenses that may not be
indicative of its recurring core business operating results. These metrics
are used by management to further its understanding of the Company's
operating performance in the ordinary, ongoing and customary course of
operations. The Company also believes that these metrics provide investors
and equity analysts with a useful basis for analyzing operating performance
against historical data and the results of comparable companies.

OIBDA and OIBDA margin. OIBDA is defined as operating income
before depreciation and amortization (exclusive of amortization of
programming rights and sublicensing rights). OIBDA margin is defined as OIBDA
divided by total operating revenues. The most directly comparable GAAP
measures to OIBDA and OIBDA margin are operating income and operating income
margin, respectively. Unlike operating income, OIBDA excludes depreciation
and amortization, other than amortization of programming rights and
sublicensing rights. The purchase of programming rights is the Company's most
significant expenditure that enables it to generate revenues, and OIBDA
includes the impact of the amortization of these rights. Expenditures for
capital items such as property, plant and equipment have a materially less
significant impact on the Company's ability to generate revenues. For this
reason, the Company excludes the related depreciation expense for these items
from OIBDA. Moreover, a significant portion of the Company's intangible
assets were acquired in business acquisitions. The amortization of intangible
assets is therefore also excluded from OIBDA.

Adjusted financial measures. As described above, in the fourth
quarter of 2008, CTC Media recognized an aggregate $232.7 million non-cash
charge for impairment of certain intangible assets acquired in connection
with three acquisitions made in 2008. In the fourth quarter of 2009, CTC
Media recognized a $18.7 million charge arising from the impairment of the
broadcasting licenses of certain regional owned-and-operated stations in
Russia and a $28.6 million stock-based compensation expense in conjunction
with the previously announced settlement of litigation brought by CTC Media
against its former CEO. CTC Media uses adjusted OIBDA (on a consolidated and
segment basis), total operating expenses (before non-recurring items),
adjusted operating income, adjusted net income before tax, adjusted income
tax expense, adjusted net income and adjusted diluted earnings per share,
each of which has been adjusted to exclude the non-recurring items described
above, so as to permit management to assess and compare the operational
performance of the business for the fourth quarters of 2008 and 2009, and
full years 2008 and 2009, and to create comparable results for future
reporting periods.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia,
with operations throughout Russia and elsewhere in the CIS. It operates three
free-to-air television networks in Russia - CTC, Domashny and DTV, Channel 31
in Kazakhstan and TV companies in Uzbekistan and Moldova. CTC Media also owns
two TV content production companies, Costafilm and Soho Media. The Company's
common stock is traded on The NASDAQ Global Select Market under the symbol
"CTCM". For more information on CTC Media, please visit
http://www.ctcmedia.ru.

Caution Concerning Forward Looking Statements

Certain statements in this press release that are not based on
historical information are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements include, among others, statements regarding developments in the
volume and pricing of television advertising in the Company's target markets;
the Company's anticipated advertising sellout in 2010; the further
development of the DTV and Domashny channels; the Company's anticipated
operating expenses and capital expenditures in 2010; and the Company's
intention to pay further dividends in 2010. These statements reflect the
Company's current expectations concerning future results and events. These
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of CTC Media to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.

The potential risks and uncertainties that could cause actual
future results to differ from those expressed by forward-looking statements
include, among others, the implementation of recent Russian legislation that
will change the structure of the Russian television advertising sales market;
the Company's current reliance on a single television advertising sales house
for substantially all of its revenues; depreciation of the value of the
Russian ruble compared to the US dollar; changes in the size of the Russian
television advertising market; the Company's ability to deliver audience
share, particularly in primetime, to its advertisers; free-to-air television
remaining a significant advertising forum in Russia; and restrictions on
foreign involvement in the Russian television business. These and other risks
are described in the "Risk Factors" section of CTC Media's quarterly report
on Form 10-Q for the third quarter of 2009, filed with the SEC on November 5,
2009, and/or the Company's annual report on Form 10-K for the full year 2009,
to be filed with the SEC on or about March 1, 2010.

Other unknown or unpredictable factors could have material
adverse effects on CTC Media's future results, performance or achievements.
In light of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed herein may not occur. You are cautioned not
to place undue reliance on these forward-looking statements. CTC Media does
not undertake any obligation to publicly update or revise any forward-looking
statements because of new information, future events or otherwise.

CTC MEDIA, INC, AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands of US dollars, except share and per share data)

Three months ended Year ended
December 31, December 31,
2008 2009 2008 2009
REVENUES:
Advertising revenue $ 183,092 $ 172,559 $ 623,336 $ 483,945
Sublicensing and own
production revenue 3,415 7,583 14,016 20,999
Other revenue 842 365 2,819 1,169
Total operating revenues 187,349 180,507 640,171 506,113

EXPENSES:
Direct operating expenses (10,206) (15,927) (37,514) (37,422)
Selling, general and
administrative (22,951) (47,864) (93,414) (100,799)
Amortization of
programming rights (56,327) (57,514) (220,557) (178,392)
Amortization
of sublicensing rights
and own production cost (1,326) (408) (8,443) (6,832)
Depreciation and
amortization (exclusive of
amortization of programming
rights and sublicensing
rights) (3,826) (3,335) (13,379) (11,454)
Impairment loss (232,683) (18,739) (232,683) (18,739)
Total operating expenses (327,319) (143,787) (605,990) (353,638)
OPERATING INCOME (LOSS) (139,970) 36,720 34,181 152,475
FOREIGN CURRENCY GAINS
(LOSSES) (17,089) (93) (28,861) (4,555)
INTEREST INCOME 967 3,593 6,221 6,087
INTEREST EXPENSE (2,926) (1,255) (9,434) (6,959)
GAINS ON SALE OF BUSINESSES - - - -
OTHER NON-OPERATING
INCOME, net 156 1,065 776 1,060
EQUITY IN INCOME (LOSSES)
OF INVESTEE COMPANIES 447 228 1,511 537
Income (loss) before
income tax (158,415) 40,258 4,394 148,645
INCOME TAX EXPENSE 28,678 (17,011) (19,874) (45,626)
CONSOLIDATED NET
INCOME (LOSS) $ (129,737) $ 23,247 $ (15,480) $ 103,019
LESS: (INCOME)
LOSS ATTRIBUTABLE TO
NONCONTROLLING INTEREST $ 40,695 $ (2,360) $ 37,934 $ (2,630)
NET INCOME (LOSS)
ATTRIBUTABLE TO CTC
MEDIA, INC. STOCKHOLDERS $ (89,042) $ 20,887 $ 22,454 $ 100,389
Net income (loss) per share
attributable to CTC
Media, Inc. stockholders
- basic $ (0.59) $ 0.14 $ 0.15 $ 0.66
Net income (loss) per share
attributable to CTC
Media, Inc. stockholders
- diluted $ (0.56) $ 0.13 $ 0.14 $ 0.64
Weighted average common
shares outstanding
- basic 151,956,598 152,425,544 152,146,559 152,223,165
Weighted average common
shares outstanding
- diluted 158,603,987 157,404,447 158,187,922 157,452,763

CTC MEDIA, INC, AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of US dollars)

Twelve months ended December 31,
2008 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income (loss) $ (15,480) $ 103,019
Adjustments to reconcile net income to
net cash provided by operating activities:
Deferred tax benefit (66,142) (6,317)
Depreciation and amortization 13,379 11,454
Amortization of programming rights 220,557 178,392
Amortization of sublicensing rights and
own production cost 8,443 6,832
Stock based compensation expense 16,083 47,607
Equity in (income) of unconsolidated
investees (1,511) (537)
Foreign currency losses 28,861 4,555
Impairment loss 232,683 18,739
Changes in provision for tax contingencies 1,318 (5,934)
Changes in operating assets and liabilities:
Trade accounts receivable (26,692) 6,436
Prepayments (14,366) (751)
Other assets 8,503 3,708
Accounts payable and accrued liabilities (455) 9,144
Deferred revenue 4,036 (4,357)
Other liabilities 20,986 (30,350)
Settlement of SARs to former CEO (29,390)
Dividends received from equity investees 1,421 622
Acquisition of programming and
sublicensing rights (245,684) (209,321)
Net cash provided by operating activities 185,937 132,941
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment
and intangible assets (10,065) (16,217)
Acquisitions of businesses, net of
cash acquired (408,967) (25,674)
Investments in deposits - (39,763)
Net cash used in investing activities (419,032) (81,654)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 1,849 3,398
Proceeds from loans 135,000 -
Repayments of loans (110,193) (62,000)
Increase in restricted cash (30) -
Dividends paid to non-controlling interest (6,031) (3,946)
Net cash provided by (used in)
financing activities 20,595 (62,548)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 3,482 (2,353)
Net decrease in cash
and cash equivalents (209,018) (13,614)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 307,073 98,055
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 98,055 $ 84,441

CTC MEDIA, INC, AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands of US dollars, except share and per share data)

December 31, December 31,
2008 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 98,055 $ 84,441
Short-term investments - 39,072
Trade accounts receivable, net
of allowance for doubtful
accounts (2008 - $1,355; 2009 -
$988) (including accounts
receivable from related parties:
2008 - $832, 2009 - $1,060) 33,670 24,230
Taxes reclaimable 8,171 7,491
Prepayments (including
prepayments to related parties:
2008 - $518, 2009 - $7) 29,005 31,277
Programming rights, net 71,976 79,268
Deferred tax assets 14,166 18,840
Other current assets 7,720 2,588
TOTAL CURRENT ASSETS 262,763 287,207
PROPERTY AND EQUIPMENT, net 22,722 25,539
INTANGIBLE ASSETS, net:
Broadcasting licenses 166,173 158,993
Cable network connections 25,205 29,689
Trade names 17,587 17,082
Network affiliation agreements 9,214 6,769
Other intangible assets 1,244 1,887
Net intangible assets 219,423 214,420
GOODWILL 223,027 226,116
PROGRAMMING RIGHTS, net 48,031 64,343
SUBLICENSING RIGHTS, net 1,221 546
INVESTMENTS IN AND ADVANCES TO
INVESTEES 5,311 5,184
PREPAYMENTS 6,238 6,605
DEFERRED TAX ASSETS 15,154 18,440
OTHER NON-CURRENT ASSETS 2,939 2,920
TOTAL ASSETS $ 806,829 $ 851,320

LIABILITIES AND STOCKHOLDERS'EQUITY
CURRENT LIABILITIES:
Accounts payable (including
accounts payable to related
parties: 2008 - $55, 2009 - $397) 41,025 51,088
Accrued liabilities 41,573 34,968
Taxes payable 30,154 27,871
Short-term loans and interest accrued 62,165 28,278
Deferred revenue 14,683 4,976
Deferred tax liabilities 2,778 5,112
TOTAL CURRENT LIABILITIES 192,378 152,293
LONG-TERM LOANS 28,438 -
DEFERRED TAX LIABILITIES 38,943 35,203
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY:
Common stock; $0.01 par value;
shares authorized 175,772,173;
shares issued and outstanding
2008 - 152,155,213, 2009 -
154,227,747) 1,522 1,542
Additional paid-in capital 365,362 386,950
Retained earnings 232,321 332,710
Accumulated other comprehensive los (54,616) (58,428)
Non-controlling interest 2,481 1,050
TOTAL STOCKHOLDERS' EQUITY 547,070 663,824
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 806,829 $ 851,320

CTC MEDIA, INC. AND SUBSIDIARIES
UNAUDITED SEGMENT FINANCIAL INFORMATION
(in thousands of US dollars)

Three months ended December 31, 2008

Operating
revenue
from Depreciation
external Intersegment Operating and
customers revenue income (loss) amortization

CTC Network $115,547 $435 $63,615 $(211)
Domashny Network 19,166 4 7,998 (147)
DTV Network 13,463 8 (2,462) (1,435)
CTC Television
Station Group 27,669 340 20,418 (516)
Domashny Television
Station Group 4,655 254 1,732 (578)
DTV Television
Station Group 1,734 145 (88,056) (601)
CIS Group 4,950 - (136,816) (258)
Production Group 164 25,007 5,049 (8)
Corporate Office - - (8,935) (71)
Business segment
results $187,348 $26,193 $(137,457) $(3,825)
Eliminations
and other - (26,193) (2,514) -
Consolidated
results $187,348 - $(139,971) $(3,825)

Continued...

Three months ended December 31, 2008

Stock-based
compensation OIBDA adjusted
expense related for impairment
to settlement loss and one-off
of litigation stock-based
Impairment against former compensation
loss CEO OIBDA expense

CTC Network - - $63,826 $63,826
Domashny Network - - 8,145 8,145
DTV Network (7,743) - (1,027) 6,716
CTC Television
Station Group - - 20,934 20,934
Domashny Television
Station Group - - 2,310 2,310
DTV Television
Station Group (87,889) - (87,455) 434
CIS Group (137,051) - (136,558) 493
Production Group - - 5,057 5,057
Corporate Office - - (8,864) (8,864)
Business segment
results $(232,683) - $(133,632) $99,051
Eliminations
and other - - (2,514) (2,514)
Consolidated $(232,683) - $(136,146) $96,537

Three months ended December 31, 2009

Operating
revenue
from Depreciation
external Intersegment Operating and
customers revenue income (loss) amortization

CTC Network $115,388 $867 $60,929 $(145)
Domashny Network 18,676 1 7,131 (121)
DTV Network 13,265 2 6,278 (799)
CTC Television
Station Group 24,342 412 1,118 (551)
Domashny Television
Station Group 3,150 452 (387) (494)
DTV Television
Station Group 1,276 5 (997) (936)
CIS Group 3,727 - 565 (196)
Production Group 683 19,791 3,683 (11)
Corporate Office 636 638 (39,654) (82)
Business segment
results $181,143 $22,168 $38,666 $(3,335)
Eliminations
and other (636) (22,168) (1,946) -
Consolidated results $180,507 - $36,720 $(3,335)

Continued ...

Three months ended December 31, 2009


Stock-based
compensation OIBDA adjusted
expense related for impairment
to settlement loss and one-off
of litigation stock-based
Impairment against former compensation
loss CEO OIBDA expense

CTC Network - $61,074 $61,074
Domashny Network 7,252 7,252
DTV Network - 7,077 7,077
CTC Television (17,015) 1,669 18,684
Station Group
Domashny Television (1,724) 107 1,831
Station Group
DTV Television - (61) (61)
Station Group
CIS Group - 761 761
Production Group - 3,694 3,694
Corporate Office - (28,588) (39,572) (10,984)
Business segment $(18,739) $(28,588) $42,001 $89,328
results
Eliminations - - (1,946) (1,946)
and other
Consolidated $(18,739) $(28,588) $40,055 $87,382
results

Continued ...

CTC MEDIA, INC. AND SUBSIDIARIES
UNAUDITED SEGMENT FINANCIAL INFORMATION (Continued)
Year ended December 31, 2008

Operating
revenue
from Depreciation
external Intersegment Operating and
customers revenue income (loss) amortization

CTC Network $412,614 $4,516 $207,382 $(963)
Domashny Network 64,142 13 18,868 (656)
DTV Network 35,868 16 7,286 (2,332)
CTC Television 95,033 1,704 60,384 (2,106)
Station Group
Domashny Television 16,003 1,069 2,552 (2,538)
Station Group
DTV Television 5,069 368 (89,811) (2,330)
Station Group
CIS Group 10,930 - (139,712) (880)
Production Group 512 47,103 5,302 (52)
Corporate Office - (34,824) (1,522)
Business segment $640,171 $54,789 $37,427 $(13,379)
results
Eliminations - (54,789) (3,246) -
and other
Consolidated $640,171 - $34,181 $(13,379)
results

Continued...

Year ended December 31, 2008

Stock-based
compensation OIBDA adjusted
expense related for impairment
to settlement loss and one-off
of litigation stock-based
Impairment against former compensation
loss CEO OIBDA expense

CTC Network - $208,345 $208,345
Domashny Network - 19,524 19,524
DTV Network (7,743) 9,618 17,361
CTC Television
Station Group - 62,490 62,490
Domashny Television
Station Group - 5,090 5,090
DTV Television
Station Group (87,889) (87,481) 408
CIS Group (137,051) (138,832) (1,781)
Production Group - 5,354 5,354
Corporate Office - (33,302) (33,302)
Business segment
results $(232,683) $50,806 $283,489
Eliminations
and other - (3,246) (3,246)
Consolidated
results $(232,683) $47,560 $280,243

Continued...

Year ended December 31, 2009

Operating
revenue
from Depreciation
external Intersegment Operating and
customers revenue income (loss) amortization

CTC Network $326,006 $3,042 $160,489 $(463)
Domashny Network 50,648 31 14,911 (379)
DTV Network 40,550 2 16,459 (2,721)
CTC Television
Station Group 64,014 1,333 24,825 (1,935)
Domashny Television
Station Group 8,810 1,422 (101) (1,471)
DTV Television
Station Group 3,858 121 (3,940) (3,326)
CIS Group 11,020 - (2,209) (804)
Production Group 1,207 52,297 6,521 (38)
Corporate Office 1,537 1,537 (61,264) (317)
Business segment
results $507,650 $59,785 $155,691 $(11,454)
Eliminations
and other (1,537) (59,785) (3,216) -
Consolidated
results $506,113 - $152,475 $(11,454)

Continued...

Year ended December 31, 2009

Stock-based
compensation OIBDA adjusted
expense related for impairment
to settlement loss and one-off
of litigation stock-based
Impairment against former compensation
loss CEO OIBDA expense

CTC Network - $160,952 $160,952
Domashny Network - 15,290 15,290
DTV Network 19,180 19,180
CTC Television
Station Group (17,015) 26,760 43,775
Domashny Television
Station Group (1,724) 1,370 3,094
DTV Television
Station Group - (614) (614)
CIS Group - (1,405) (1,405)
Production Group - 6,559 6,559
Corporate Office - (28,588) (60,947) (32,359)
Business segment
results $(18,739) $(28,588) $167,145 $214,472
Eliminations
and other - - (3,216) (3,216)
Consolidated
results $(18,739) $(28,588) $163,929 $211,256

CTC MEDIA, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED OIBDA TO
CONSOLIDATED OPERATING INCOME

Three months ended Year ended
December 31, December 31,
2008 2009 2008 2009

(in thousands of US dollars)

OIBDA $(136,144) $40,055 $47,560 $163,929
Depreciation and
amortization
(exclusive of
amortization of
programming rights and
sublicensing rights) (3,826) (3,335) (13,379) (11,454)
Operating income $(139,970) $36,720 $34,181 $152,475

CTC MEDIA, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED OIBDA MARGIN TO
CONSOLIDATED OPERATING INCOME MARGIN

Three months ended Year ended
December 31, December 31,
2008 2009 2008 2009

OIBDA margin (72.7%) 22.2% 7.4% 32.4%
Depreciation and
amortization (exclusive
of amortization of
programming rights and
sublicensing rights) as
a percentage of total
operating revenues (2.0%) (1.8%) (2.1%) (2.3%)
Operating income margin (74.7%) 20.3% 5.3% 30.1%

CTC MEDIA, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED ADJUSTED OIBDA AND OTHER
ADJUSTED FINANCIAL MEASURES TO
CONSOLIDATED OIBDA AND OTHER CORRESPONDING CONSOLIDATED GAAP
FINANCIAL MEASURES, RESPECTIVELY
income/(loss) Fully
(US$ 000's except per
share data) Total Income before
operating Operating non-controlling
OIBDA expenses income/(loss) interest

Three Months ended
December 31, 2008
Adjusted non-US
GAAP results $96,537 $(94,636) $92,712 $74,266
Impact of non-cash
intangible asset
impairment charge (232,683) (232,683) (232,683) (232,683)
Results as reported
(under US GAAP,
except for OIBDA
which is a
non-GAAP
financial measure) (136,146) (327,319) (139,971) (158,417)

Year ended December
31, 2008
Adjusted non-US
GAAP results $280,243 $(373,307) $266,864 $237,077
Impact of non-cash
intangible asset
impairment charge (232,683) (232,683) (232,683) (232,683)
Results as reported
(under US GAAP,
except for OIBDA
which is a non-US
GAAP financial
measure) 47,560 (605,990) 34,181 4,394

Continued...

Net
income/(loss) Fully
(US$ 000's Income attributable diluted
except per tax Non-controlling to CTC Media, earnings
share expense interest Inc. stockholders per share
data)
Three Months ended
December 31, 2008
Adjusted non-US
GAAP results $(1,653) $(7,978) $64,635 $0.41
Impact of non-cash
intangible asset
impairment charge 30,331 48,673 (153,679) (0.98)
Results as reported
(under US GAAP,
except for OIBDA
which is a
non-GAAP
financial measure) 28,678 40,695 (89,004) (0.57)

Year ended December
31, 2008
Adjusted non-US
GAAP results $(50,205) $(10,739) $176,133 $1.11
Impact of non-cash
intangible asset
impairment charge 30,331 48,673 (153,679) (0.97)
Results as reported
(under US GAAP,
except for OIBDA
which is a non-US
GAAP financial
measure) (19,874) 37,934 22,454 0.14

CTC MEDIA, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED ADJUSTED OIBDA AND OTHER
ADJUSTED FINANCIAL MEASURES TO
CONSOLIDATED OIBDA AND OTHER CORRESPONDING CONSOLIDATED GAAP
FINANCIAL MEASURES, RESPECTIVELY

income/(loss) Fully
(US$ 000's except per
share data) Total Income before
operating Operating non-controlling
OIBDA expenses income/(loss) interest
Three months ended
December 31, 2009

Adjusted non-US
GAAP results $ 87,382 $ (96,460) $ 84,047 $ 87,585

Impact of non-cash
intangible asset
impairment charge (18,739) (18,739) (18,739) (18,739)

Impact of stock-based
compensation expense
related to settlement
of litigation against
former CEO (28,588) (28,588) (28,588) (28,588)

Results as reported
(under US GAAP, except
for OIBDA, which is a
non-GAAP financial
measure) 40,055 (143,787) 36,720 40,258

Year ended
December 31, 2009

Adjusted non-US
GAAP results $ 211,256 $ (306,311) $ 199,802 $ 195,972

Impact of non-cash
intangible asset
impairment charge (18,739) (18,739) (18,739) (18,739)

Impact of stock-based
compensation expense
related to settlement
of litigation against
former CEO (28,588) (28,588) (28,588) (28,588)

Results as reported
(under US GAAP, except
for OIBDA, which is a
non-GAAP financial
measure) 163,929 (353,638) 152,475 148,645

Continued...

Net
income/(loss) Fully
(US$ 000's Income attributable diluted
except per tax Non-controlling to CTC Media, earnings
share expense interest Inc. stockholders per share
data)

Three months ended
December 31, 2009

Adjusted non-US
GAAP results $ (20,759) $ (2,360) $ 64,446 $ 0.41

Impact of non-cash
intangible asset
impairment charge 3,748 - (14,991) 0.10

Impact of stock-based
compensation expense
related to settlement
of litigation against
former CEO - - (28,588) 0.18

Results as reported
(under US GAAP, except
for OIBDA, which is a
non-GAAP financial
measure) (17,011) (2,360) 20,887 0.13

Year ended
December 31, 2009

Adjusted non-US
GAAP results $ (49,374) $ (2,630) $ 143,967 $ 0.91

Impact of non-cash
intangible asset
impairment charge 3,748 - (14,991) 0.10

Impact of stock-based
compensation expense
related to settlement
of litigation against
former CEO - - (28,588) 0.18

Results as reported
(under US GAAP, except
for OIBDA, which is a
non-GAAP financial
measure) (45,626) (2,630) 100,389 0.64

CTC MEDIA, INC. AND SUBSIDIARIES
RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME

Three Months Ended December 31, 2008

Depreciation
and
amortization
(exclusive of
OIBDA amortization Operating
of programming income/(loss)
programming
rights and
sublicensing
(US$ 000's) rights)

CTC Network $63,826 $(211) $63,615
Domashny Network 8,145 (147) 7,998
DTV Network (1,027) (1,435) (2,462)
CTC Television
Station Group 20,934 (516) 20,418
Domashny Television
Station Group 2,310 (578) 1,732
DTV Television
Station Group (87,455) (601) (88,056)
CIS Group (136,558) (258) (136,816)
Production Group 5,057 (8) 5,049
Corporate (8,864) (71) (8,935)

Business Segment $(133,632) $(3,825) $(137,457)
Results
Eliminations and
Other (2,514) - (2,514)
Consolidated Results $(136,146) $(3,825) $(139,971)

Three Months Ended December 31, 2009

Depreciation
and
amortization
(exclusive of
OIBDA amortization Operating
of programming income/(loss)
rights and
sublicensing
(US$ 000's) rights)

CTC Network $61,074 $(145) $60,929
Domashny Network 7,252 (121) 7,131
DTV Network 7,077 (799) 6,278
CTC Television
Station Group 1,669 (551) 1,118
Domashny Television
Station Group 107 (494) (387)
DTV Television
Station Group (61) (936) (997)
CIS Group 761 (196) 565
Production Group 3,694 (11) 3,683
Corporate (39,572) (82) (39,654)

Business Segment
Results $42,001 $(3,335) $38,666
Eliminations and
Other (1,946) - (1,946)
Consolidated Results $40,055 $(3,335) $36,720

Continued ...

CTC MEDIA, INC. AND SUBSIDIARIES
RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME
(continued)

Year Ended December 31, 2008

Depreciation
and
amortization
(exclusive of
OIBDA amortization Operating
of programming income/(loss)
rights and
sublicensing
(US$ 000's) rights)

CTC Network $208,345 $(963) $207,382
Domashny Network 19,524 (656) 18,868
DTV Network 9,618 (2,332) 7,286
CTC Television
Station Group 62,490 (2,106) 60,384
Domashny Television
Station Group 5,090 (2,538) 2,552
DTV Television
Station Group (87,481) (2,330) (89,811)
CIS Group (138,832) (880) (139,712)
Production Group 5,354 (52) 5,302
Corporate (33,302) (1,522) (34,824)

Business Segment
Results $50,806 $(13,379) $37,427
Eliminations and
Other (3,246) - (3,246)
Consolidated Results $47,560 $(13,379) $34,181

Year Ended December 31, 2009

Depreciation and
amortization
(exclusive of
amortization of
OIBDA programming Operating
rights and income/(loss)
sublicensing
(US$ 000's) rights)

CTC Network $160,952 $(463) $160,489
Domashny Network 15,290 (379) 14,911
DTV Network 19,180 (2,721) 16,459
CTC Television
Station Group 26,760 (1,935) 24,825
Domashny Television
Station Group 1,370 (1,471) (101)
DTV Television
Station Group (614) (3,326) (3,940)
CIS Group (1,405) (804) (2,209)
Production Group 6,559 (38) 6,521
Corporate (60,947) (317) (61,264)

Business Segment
Results $167,145 $(11,454) $155,691
Eliminations and
Other (3,216) - (3,216)
Consolidated Results $163,929 $(11,454) $152,475

---------------------------------

[1] Total operating expenses (before non-recurring items) is a
non-GAAP financial measure that excludes a $232.7 million charge arising from
the impairment of intangible assets of DTV Group in Russia, Channel 31 in
Kazakhstan and a broadcasting group in Moldova in the fourth quarter of 2008;
an $18.7 million charge arising from the impairment of the broadcasting
licenses of certain regional owned-and-operated stations in Russia in the
fourth quarter of 2009; and a $28.6 million stock-based compensation expense
recognized in conjunction with the previously announced settlement of
litigation brought by CTC Media against its former CEO in the fourth quarter
of 2009. Please see the accompanying financial tables at the end of this
release for a reconciliation of total operating expenses (before
non-recurring items) to GAAP total operating expenses.

[2] OIBDA is defined as operating income before depreciation
and amortization (excluding amortization of programming rights and
sublicensing rights). OIBDA margin is defined as OIBDA divided by total
operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial
measures. Please see the accompanying financial tables at the end of this
release for a reconciliation of OIBDA to operating income and OIBDA margin to
operating income margin.

[3] All adjusted numbers are non-GAAP financial measures
reported before the non-recurring items described above. Please see the
accompanying financial tables at the end of this release for a reconciliation
of adjusted OIBDA to OIBDA, adjusted net income to GAAP reported net income
and adjusted diluted earnings per share to GAAP reported earnings per share.

[4] Organic operating expenses are total operating expenses
excluding the operating expenses of the businesses acquired and consolidated
in the second quarter of 2008 (DTV Group, CIS Group and Production Group),
impairment charges on intangible assets, and stock-based compensation expense
recognized in conjunction with the previously announced settlement by CTC
Media of litigation brought by it against its former CEO.

[5] Segment revenues are shown from external customers only, net of
intercompany revenues of $26.2 million in the fourth quarter of 2008, $22.2
million in the fourth quarter of 2009, $54.8 million for the full year 2008,
and $59.8 million for the full year 2009, primarily related to revenues from
the Production Group that have been eliminated in the consolidation of the
Company's revenues.

[6] Excludes a $28.6 million stock-based compensation expense recognized
in the fourth quarter of 2009 in conjunction with the previously announced
settlement of litigation brought by CTC Media against its former CEO.

For further information, please visit http://www.ctcmedia.ru or contact:

CTC Media, Inc.
Investor Relations
Ekaterina Ostrova
Tel: +7-495-783-3650
ir@ctcmedia.ru

Media Relations
Ekaterina Osadchaya or
Angelika Larionova
Tel: +7-495-785-6333
pr@ctcmedia.ru

Source: CTC Media, Inc

For further information, please visit http://www.ctcmedia.ru or contact: CTC Media, Inc., Investor Relations, Ekaterina Ostrova, Tel: +7-495-783-3650, ir@ctcmedia.ru ; Media Relations, Ekaterina Osadchaya or Angelika Larionova, Tel: +7-495-785-6333, pr@ctcmedia.ru

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