CME Takes Full Control of Studio 1+1

HAMILTON, October 22:
Central European Media Enterprises (CME) now owns 100 percent of Studio 1+1
after acquiring the remaining 10-percent stake in the Ukrainian media group.

In July, CME upped its ownership
in Studio 1+1 from 60 percent to 90 percent. The remaining 10 percent, held by
Boris Fuchsmann and Alexander Rodnyansky, was subject to a put and call option
that was exercised by CME last week. The stake was acquired for $109.1 million
in cash.

Michael Garin, CME's CEO, commented: "This is the final step in achieving full
control of Studio 1+1, one of the key objectives of our strategy in Ukraine. As
a result, we expect to strengthen our performance and position in this market.
Our goal for the future is to make Studio 1+1 the number one television station
in Ukraine."

Adrian Sarbu, CME's COO,
added: "Studio 1+1 is a tremendous asset in what is by far our largest
market with 47 million people. With the completion of this transaction we are
now in a position to accelerate the execution of our strategic plan to improve
the operating performance and profitability of the station. We have already
taken the first steps on the way to become the number one television station in
Ukraine. We have appointed two key executives in Ukraine, reset our programming
strategy, repositioned our news show and established a new production unit.
Studio 1+1 forms the core of our growth strategy for Ukraine and we look
forward to expanding our presence in this market."

Launched in 1997, Studio
1+1 reaches almost 47 million people with an all-day audience share of 12
percent and prime-time share of 14 percent in its 18+ target group during the
first half of 2008.

—By Mansha Daswani