Zodiak Television Acquires Production Company in the Ukraine

STOCKHOLM, August 22: Dixi Media, the Russian subsidiary of Zodiak Television Group, has
acquired a 75-percent stake in YS Films, the second-largest production company
in the Ukraine.

The
acquisition of YS Films is the first step in a further expansion into former
Soviet Union states. YS Films, with facilities in Kiev and Odessa, has a
background as a producer of TV movies. Following the acquisition, YS Films will
begin producing television series for Ukrainian broadcasters, and has recently
gone into production on TV series like the docudrama Faktor, the daily drama series 13 and a daily entertainment series.
Furthermore, YS Films will produce two TV movies during the year: Single Angel and Light from the Other Side.

Zodiak owns
a 51-percent stake in TeleAlliance, with the brands TeleFormat and TeleRoman,
and in Dixi Media, with the brands Dixi and Rytm, through Zodiak Vostok, a
wholly-owned subsidiary of Zodiak Television.

The Ukrainian
TV market, traditionally supplied by entertainment and drama originating from
Russia, is currently experiencing rapid growth, and the demand for original,
locally produced programming has increased dramatically.

“My
expectation is that YS Films’ growth will be similar to the very positive
development that our Russian subsidiaries are enjoying and I am convinced that
the Ukrainian financial growth will be very strong over the next couple of
years,” commented Patrick Svensk, the president and CEO of Zodiak Television.