MTG to Acquire Online Retailers

STOCKHOLM, December 17: Modern Times Group’s (MTG) CDON
e-commerce subsidiary has reached deals to acquire 100 percent of the Finnish
online book retailer Helsingin Dataclub Oy and 90.1 percent of the Swedish
online children’s clothes retailer Linus & Lotta Postorder for a total cash
consideration of approximately SEK 40 million.

The announcement follows the recommended offer for the
entire outstanding share capital of the dietary supplements retailer
Gymgrossisten Nordic.

Linus & Lotta Postorder is the leading online retailer
of childrens’ clothing in the Nordic region, with 30,000 unique visitors per
month. The company generated sales of approximately SEK 36.1 million for the
twelve months ended August 31, 2007, with an operating loss of SEK 2.5 million.

Helsingin Dataclub Oy operates the www.bookplus.fi online
bookstore, which is one of Finland’s leading online book retailers. Bookplus
has 89,000 registered customers and generated sales of approximately SEK 26.7
million and an operating profit of SEK 0.9 million for the nine months ended
September 30, 2007.

CDON is the leading online retailer of entertainment
products in the Nordic region, with a broad offering including CDs, DVDs,
computer games, books, electronic products, and services such as rental DVDs,
music downloads and on-demand film streaming.

Hans-Holger Albrecht, the president and CEO of MTG,
commented: “The new acquisitions will further bolster our dynamic internet
retailing business, and demonstrate our commitment to become the leading online
provider of products and services with a high potential for profitability, in
the Nordic region. The new businesses will provide MTG with exposure to
exciting high growth market segments. Besides entertainment products through
CDON, MTG will now also access the health and sports, books, children’s clothes
and fashion segments, and we intend to use CDON’s Internet solution and
enterprise systems for all of these segments. We continue to develop CDON’s
integrated customer database and have access to MTG’s media networks for
marketing and sales.”

—By Mansha Daswani