EM.Sport Acquires Highlight Stake

UNTERFOEHRING, September 26: EM.Sport Media has reached a
deal to acquire up to 36.4 percent in Highlight Communications, a film, home
entertainment and sports and event-marketing company whose assets include
majority stakes in Germany’s Constantin Film and Lucerne’s Team Holding, which
represents the UEFA Champions League rights.

The first step of the transaction sees EM.Sport Media taking
25.1 percent (11.86 million shares) of outstanding Highlight shares from Leo
Kirch’s Munich-based KF 15 GmbH & Co. KG in return for a payment of 66.4
million euro and 9 million shares in EM.Sport Media. The payment of 66.4
million euros will come from existing EM.Sport Media Group resources or, with a
view to possible further acquisitions, may include a proportion of external
funding. On completion of the transaction, KF 15 hold an approximate
11.5-percent stake in EM.Sport Media. Simultaneously, EM.Sport Media will
receive an option to purchase from KF a further stake of 11.3 percent of
Highlight stock (5.33 million shares) at an option price of 2.7 million euros.
That option may be exercised between January 1, 2008 and June 30, 2008. An
exercise price of 10 euros per Highlight share has been set, totaling 53.3
million euros. This would bring the voting shares held by EM.Sport Media AG to
a total of 36.4 percent.

The transaction remains subject to the approval of the
antitrust authorities, and must be reported to the Bayerische Landeszentrale
für neue Medien (BLM) (Bavarian State Authority for New Media) and the
Kommission zur Ermittlung der Konzentration im Medienbereich (KEK) (Commission
for the Determination of Concentration within the Media Sector).