MTG: CTC MEDIA ANNOUNCES INTENTION TO PAY DIVIDENDS IN 2010

February 26 2010

Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international entertainment broadcasting group, today announced that CTC Media, Inc. (‘CTC Media’) has today announced its intention to pay an aggregate of US$ 40 million in cash dividends in 2010. The Board of Directors of CTC Media has approved the payment of the first instalment of the dividend in the amount of US$ 0.065 per outstanding share of common stock, or US$ 10 million in total. The record date for this first instalment is 10 March 2010 and the payment date is 31 March 2010. CTC Media has also announced its intention to pay the three remaining instalments of US$ 10 million in each of June, September and December 2010. MTG currently holds 60 million CTC Media shares, which is equivalent to 38.91% of CTC Media’s outstanding shares. MTG reports its equity participation in the earnings of CTC Media as associated company income in the Group’s income statements.

CTC Media is the largest independent television broadcaster in Russia, with operations throughout Russia and elsewhere in the CIS. It operates three free-to-air television networks in Russia – CTC, Domashny and DTV; Channel 31 in Kazakhstan; and TV companies in Uzbekistan and Moldova. CTC Media also owns two TV content production companies, Costafilm and Soho Media. The Company’s common stock is traded on The Nasdaq Global Select Market under the symbol ‘CTCM’. Further information about CTC Media is available at www.ctcmedia.ru.

CTC Media announced the dividend in the context of its financial results for the fourth quarter and twelve months ended 31 December 2009. CTC Media reported total revenues of US$ 506.1 million, OIBDA adjusted for non-recurring items of US$ 211.3 million, an adjusted OIBDA margin of 42%, and adjusted net income of US$ 144.0 million for the full year 2009. CTC Media had a net cash position of US$ 95.2 million as at the end of 2009.

Hans-Holger Albrecht, President and CEO of MTG, commented: “This is the first cash dividend that we will have received from CTC Media and indicates the highly cash generative nature of the business. We have invested a total of approximately US$ 83 million in the acquisition of our shareholding in CTC Media and are the largest shareholder in the Company. CTC Media has a portfolio of well-positioned TV networks in Russia, which had a combined 13.2% share of viewing in 2009, and has also successfully expanded into content creation and a number of other CIS countries in the last few years.”

MTG’s shares in CTC Media had a public equity market value of US$ 922 million (approximately SEK 6,624 million) as at the close of trading on Nasdaq yesterday, 25 February 2010

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