CME Secures 60-Percent Ownership in Ukraine’s Studio 1+1

HAMILTON, September 4: Central European Media Enterprises
(CME) has secured a 60-percent ownership in Ukraine’s Studio 1+1, the license
company of the Studio 1+1 Group.

The stake was secured with CME’s completion of the
registration of a 42-percent direct ownership interest in Studio 1+1 via a
Ukrainian subsidiary company. With its existing 18-percent indirect ownership,
CME now has secured control over the Studio 1+1 broadcasting licenses.

Ukraine is CME's largest market with a population of 46.7
million people. According to CME estimates, the Ukrainian television
advertising market grew by 25-30 percent in 2006 and was worth $240 million to
$250 million.

Michael Garin, CME's CEO, commented: “Today's announcement
marks the successful completion of a process that CME initiated nearly two
years ago. We believe that this change should allow us to exercise greater
influence over the station management, allow CME to create stronger synergies
among CME media assets in Ukraine and further improve our overall Ukrainian
operations.”