Dori Reports Strong Revenue, Profit Gains

TEL AVIV, February 20:
Dori Media Group has reported full-year revenues of $20.4 million, a 69-percent
gain on this time lat year, with a net profit of $4.1 million, a 152 percent
gain on 2005’s results.

For the second half of the
year, meanwhile, revenues jumped 92 percent to $10.75 million and profit was up
61 percent to $2.4 million.

For the year, Dori
reported 104-percent growth in its telenovela broadcasting and format rights
sales business—which accounts for 50.1 percent of its revenues—to
$10.4 million. International sales accounted for 73.3 percent of total sales
last year, up from 46.4 percent in 2005. About 36 percent of global sales came
from Europe, 34.5 percent from Central America and 2.7 percent from Asia.

The company also reported
93 percent growth in its merchandising and music CD ancillary business to US$5.6
million.

The year saw Dori launch
the telenovela channel Televiva Vision 2 in Indonesia via Indovision as well as
a global distribution arm in Dori Media Distribution. Dori also extended its
agreements with platforms YES and HOT for its Israeli novela channels VIVA and
VIVA Platina.

Nadav Palti, the president
and CEO of Dori Media, commented: “2006 was a very successful year for Dori
Media, culminating in record results that are significantly higher than market
expectations. Our strong performance in 2006 is mainly attributed to the
increase in broadcasting and format rights sales combined with strong results
in DMG’s ancillary businesses. This led to a substantial increase in gross
profit in 2006, in spite of our commitments to international expansion, the
launch of Televiva Vision 2 and Baby TV Vision 3, investing into new
programming and employing more sales and TV channels personnel. Our strong
financial performance throughout the year, alongside our growing audience,
driven by the launch of a dedicated telenovela channel in Indonesia and by new
broadcasting agreements in Europe and Central and South America, confirm our
belief that the genre is continuing to grow in popularity with sophisticated
European markets now also entering the scene. Furthermore, through the launch
of Dori Media Distribution and Dori Media OT, we reiterate our commitment to
consolidating our leadership in the industry by offering a fully integrated
service that will generate even greater returns and create better value for all
our shareholders.”