Russia’s CTC Expands to Kazakhstan, Uzbekistan

MOSCOW, September 4: Russian broadcaster CTC Media has made
a $65 million cash investment to take a stake in Kazakhstan’s Channel 31, and
plans to launch a new station in Uzbekistan.

In Kazakhstan, CTC Media gains a 20-percent interest in
Channel 31 and majority ownership positions in affiliate companies that will
provide the advertising sales function and programming content for Channel 31.
These interests will provide CTC Media with a right to 60 percent of the
economic interest of the Channel 31 group.

Alexander Rodnyansky, CEO of CTC, noted: "We are
excited about the opportunity the Kazakhstan market presents. This is a country
with a population of more than 15 million people and a fast-growing economy. It
has significant potential for further growth in the television advertising
market which industry experts estimated at approximately $200 million in 2006
and is the third largest among the countries of the former Soviet Union behind
Russia and Ukraine. With younger viewers comprising an unusually high
proportion of total audience in the country, CTC's focus on younger
demographics provides us with an attractive opportunity to gain audience share.
Together with our Kazakh partners, a prominent team of professionals led by
journalist and executive Armanjan Baitasov, we aim to create a high quality
entertainment television station in Kazakhstan while maintaining the channels'
distinct local appeal."

In addition, CTC Media has aligned with the Terra group, a
leading independent Uzbek media holding company, to register a new television
company in Uzbekistan that is expected to commence operations in 2008 on
Channel 30. CTC Media will own 51 percent of the company. The population of
Uzbekistan is more than 27 million.

Rodnyansky said, "We will create the first national TV
player with foreign ownership participation in a TV market that had been
developing in isolation for quite a while. This allows us to bring together the
concept of private entertainment television and our programming and operational
expertise. In cooperation with our local partners, we are in a unique position
to reshape and develop the Uzbek TV landscape."

The CTC television network is carried by more than 340
affiliate stations, including 18 owned-and-operated stations. CTC Media also
owns the Domashny television network, whose signal is carried by over 220
affiliate stations, including ten owned-and-operated stations.