Zodiak in Talks to Acquire British Production Outfit

COPENHAGEN, October 5: Zodiak Television announced today
that it is in negotiations to acquire the British outfit Diverse Production
from the FBC Group.

Diverse, whose credits include Animal Rescue and Are We Being Served, was acquired by the FBC Group in 2004. It
specializes in factual programming and recently entered into the docudrama
arena. Headquartered in London, the company has operations in Bristol and in
New York.

It is not clear how far along the two companies are in the
negotiations. In its statement today, Zodiak said: “If the parties find
themselves in agreement the transaction is scheduled to close in the near
future. During the negotiations Zodiak Television will inform of any material
changes or updates.… No more information will be given by any party before the
negotiations have reached further material steps and no other comments to media
or the financial markets will be made except clarifications.”

Zodiak has made a raft of European acquisitions of late,
picking up the Russian outfit TeleAllians, an 80-percent interest in another
Russian company, TeleRoman, Look Entertainment in Denmark, and a 35-percent
interest in Zebra Media Poland.