Central EU media enterprises into Bulgaria

Central European Media Enterprises Ltd. ("CME") today announced that it has entered into agreements to acquire from Top Tone Media Holdings Limited an 80% interest in two Bulgarian television channels: the TV2 channel, a national terrestrial network launched in November 2007, and Ring TV, a sports cable channel. Total consideration for the 80% interest, which is payable in cash, is expected to be approximately US$172 million, before adjustment for debt and working capital as well as a holdback to cover potential undisclosed liabilities. Closing enterprises is expected to occur within two weeks.

In connection with this acquisition, CME will also enter into a consulting agreement with Krassimir Guergov, a well know media entrepreneur in Bulgaria who will continue to provide his expertise and advice for the development of TV2, Ring TV and the other broadcasting properties of CME in Bulgaria.

Michael Garin, CME's Chief Executive Officer, commented: "This acquisition is an important next step in the continuing expansion of our free-to-air broadcasting operations in Central and Eastern Europe. Our entrance into the Bulgarian market represents the first new CME territory in three years and demonstrates our ability to continue our growth strategy within the region. The TV2 Group, with a core free-to-air national network and supporting assets such as niche cable channels, is an exceptional fit with our multi-channel business model. We look forward to entering Bulgaria, which has a dynamic economy and a rapidly growing television advertising market."

Adrian Sarbu, CME's Chief Operating Officer, commented: "Bulgaria represents enterprises an excellent opportunity for enterprises. The Bulgarian TV market is dominated by a few key players and I firmly believe in CME's ability to achieve market leadership within the next 5 years. This target is achievable through the development of local programming, use of synergies with our Romanian operations and leveraging our existing proven skills and knowledge base. This acquisition is another milestone in our strategy to expand throughout Central and Eastern Europe."