Claxson Board Approves Privatization

MIAMI/BUENOS AIRES, April
3: Claxson Interactive Group has announced the execution of a merger agreement
with a wholly owned subsidiary in order to become a privately held company.

All stockholders of the
outstanding Class A common shares of Claxson, other than certain controlling
stockholders, will receive $13.75 per share in cash. The price to be paid in
the merger represents a 31-percent premium to the original proposal of $10.50
per share made by management on March 19, 2007, and a 43-percent premium over
the $9.65 closing share price before the announcement of the proposal last
March.

The controlling
stockholders of Claxson, consisting of affiliates of the Cisneros Group of
Companies, Hicks Muse, CEO Roberto Vivo, Luis H. Moreno and related entities,
currently own a total of approximately 81.98 percent of the issued and
outstanding Class A common shares of Claxson, and would own all of the
outstanding shares of Claxson following the consummation of the merger.

“We believe that given our
smaller size following the sales of our basic pay-TV and Chilean radio
businesses in 2007 as well as the current financial, business, and industry
environments, it is in the best interest of the company and all of its
shareholders that the company reduce its costs wherever possible, including, by
deregistering under the Securities Exchange Act of 1934,” said Vivo.

Claxson expects the merger
to close in the second quarter of 2008. The closing is subject to various
conditions, including approval of the merger by a majority of Claxson’s
shareholders and certain other customary closing conditions.

—By Irene Lew