CTC Takes Stake in Kazakhstan Broadcaster

MOSCOW, February 4:
Russian broadcaster CTC Media has reached a deal to take a 20-percent stake in
Almaty-based Channel 31, the fourth-largest broadcaster in Kazakhstan with an
audience share of 7.1 percent in the second half of 2007.

Channel 31 comprises 11
stations and approximately 60 independent affiliate stations in Kazakhstan,
which has a population of more than 15 million people.

The deal sees CTC also
taking majority ownership positions in affiliate companies that will provide
advertising sales and content for the Kazakh channel. CTC will hold a total of
60 percent of the Channel 31 Group. The transaction is expected to close in the
first quarter of 2008, with Channel 31 to begin broadcasting in the CTC format
soon thereafter.

Commenting on the
acquisition, Alexander Rodnyansky, the CEO of CTC Media, noted: "We are
pleased with our progress in Kazakhstan and are excited about the opportunity
this market presents. In addition to the significant potential for future
growth in Kazakhstan’s television advertising market, television viewership is
remarkably high among young audiences, with viewers younger than 35 years old
comprising nearly half of the total television audience in the country. Thus,
CTC’s focus on younger demographics, together with our programming expertise,
provide us with an attractive opportunity to expand the channel’s audience
share and deliver highly coveted younger audiences to advertisers. We believe
that with our Kazakhstan partners, a prominent team of professionals led by
journalist and executive Armanjan Baitasov, we are well positioned to deliver a
unique and high quality entertainment offering to Kazakhstan audiences."

—By Mansha Daswani