Apax Takes CME Stake

HAMILTON, August 29: Private equity firm Apax Partners has
reached a deal to acquire 49.7 percent of Ronald S. Lauder’s interest in
Central European Media Enterprises (CME) for approximately $190 million in
cash, giving it a 7.8 percent interest in the broadcasting group.

Apax will become a limited partner in a partnership holding
all of the Lauder interests in CME. The remaining 50.3 percent interest in the
partnership will be owned by Lauder and his family. The deal is expected to close
on September 1. At closing the partnership will own 15.7 percent of the total
outstanding equity of CME. The partnership will retain 64.8 percent voting
interest in CME and Apax will have 7.8 percent indirect economic interest.

In connection with this transaction, the CME Board of
Directors has approved the election of Christian Stahl and Frank Ehmer of Apax
as directors.

Commenting on the announcement, Lauder, the non-executive
chairman of CME, noted, "This partnership allows me to diversify my personal
investments and recognize a return on a part of my initial investment in the
company, while remaining CME's largest shareholder. Further, it provides CME
with a strong financial investor and additional Board Directors who share our
commitment to building on the company's leadership position and regional
focus. s the largest broadcaster
in Central and Eastern Europe and with an outstanding management team, CME is
in a unique position to capitalize on the significant growth opportunities in
its markets."

Michael Garin, CME's CEO, added, "Apax's investment is
a confirmation of our strategy and a show of confidence in the continued growth
of our markets. Apax is an ideal
strategic and financial partner and with Christian Stahl and Frank Ehmer
joining our Board we look forward to working with them as we continue to
execute our strategic plan. Our investors should recognize that typically
private equity firms seek returns of 2-3 times their investment. If Apax is
able to realize this objective all investors will realize the same returns for
themselves with no investor advantaged over one another. We share Apax's
optimistic view of our future."

Christian Stahl of Apax Partners said: "CME is one of
the fastest growing and best managed media companies in the world and
represents an exceptional investment opportunity. We are impressed with the
company's business plan, management team and disciplined financial approach. We
are thrilled to acquire a significant equity interest in CME."