Turner Broadcasting System Acquires Claxson Networks

ATLANTA, December 15: Turner Broadcasting System has reached
a deal to acquire seven pay-TV networks in Latin America from Claxson
Interactive Group for about $235 million.

TBS, Inc. will acquire Fashion TV, HTV, Infinito, I.Sat,
MuchMusic, Retro and Space, which reach about 51 million subscribers across the
region. In addition, TBS, Inc. assumes sales representation rights for Claxson-
and third party-owned networks in Latin America, and will provide related
technical services to these networks. Turner Broadcasting System Latin America
will manage the channels, bringing the company’s portfolio to 13 wholly owned
networks and 10 represented networks. Turner Broadcasting System Latin America
currently operates CNN International, TNT, Cartoon Network, CNN en Espanol,
Boomerang and TCM Classic Hollywood, collectively reaching some 85 million
households in the region.

"This agreement with Claxson furthers our strategy of
expanding our television networks business with local-language programming for
the growing Latin American market," said Philip I. Kent, the chairman and
CEO of TBS, Inc. "The Claxson networks complement Turner's existing
portfolio of leading pay-television networks in the Latin America region.
Together, they offer consumers of all ages a range of quality, branded
entertainment, news and information programming tailored for the market."

Claxson will maintain its interests in Playboy TV Latin
America, Digital Latin America, DMX and MUSIC Latin America, as well as its
broadcast radio business in Chile and its broadband and Internet division.

"Our pay TV division has achieved extraordinary results
over the last few years thanks to management's ability to turn market threats
into opportunities,” added Roberto Vivo-Chaneton, the chairman and CEO of
Claxson. “Given the position of our networks in the marketplace, it is logical
that a leading company such as Turner sees Claxson's pay-TV division as a
growth opportunity. Separately, we look forward to growing our remaining
networks together with Turner."