July 5 2004


Modern Times Group MTG AB, the international media group, today
announced that MTG Radio has signed a cooperation agreement with NRJ
Group S.A. whereby MTG Radio will assume the day to day management and
advertising sales of NRJ’s twenty radio stations in Sweden. Ten of
NRJ’s stations will be rebranded as ‘RIX FM’ stations and seven will be
rebranded as ‘Lugna Favoriter’ stations. The remaining three NRJ
stations, which are broadcast in Stockholm, Gothenburg and Malmö
respectively, will retain their NRJ branding. As a result of this
agreement, MTG Radio’s ‘Power Hit’ radio station in Stockholm will be
closed down.

MTG also today announced the acquisition of a 6.6% share holding in P4
Radio Hele Norge ASA from Industriförvaltnings AB Kinnevik in exchange
for Metro International class ‘A’ shares. MTG has acquired Kinnevik’s
entire holding of 2,124,820 shares in P4 in exchange for 2,220,629 Metro
International class ‘A’ shares. Following this transaction, MTG’s
holding in P4 has increased to 12,798,328 shares or 39.7% of the share
capital and MTG’s holding in Metro International has declined to
146,968,313 shares or 28.0% of the share capital. The calculation of
the exchange formula for the shares is based on the ten day weighted
average trading price of the P4 share and the Metro International class
‘A’ share up to the close of trading on Friday 2 July 2004 on the Oslo
and Stockholm stock exchanges respectively.

P4 is Norway’s largest commercial radio network. The station had a 24%
national daily reach in the first quarter and has approximately 75%
technical penetration in Norway. MTG will continue to report its
participation in the earnings of P4 as an associated company.

Hans-Holger Albrecht, President and CEO of MTG, commented: “These two
agreements reflect MTG’s focus on core broadcasting assets. The
outsourcing of the operational management of the NRJ stations to MTG
will enable us to sell a significantly increased reach in Sweden. Radio
advertising remains an under-represented segment of the advertising
market when compared with Europe and the US and we are now even better
positioned to benefit from future structural changes and growth in the

“P4 has increased both its commercial share of listening and penetration
in Norway following the award of the P5 licence from the beginning of
this year. As with our operations in Sweden, the network is well-
positioned to benefit from future growth in the advertising market.”

MTG Radio Sweden will be responsible for the day-to-day management and
operation of the NRJ stations. Ownership of the NRJ stations and the
stations’ broadcasting licences remain with NRJ Group S.A. The
cooperation is being effected by means of the franchising of the MTG
‘RIX FM’ and ‘Lugna Favoriter’ formats and brands to NRJ and the
franchising of the three ‘NRJ’ brands and formats to MTG Radio Sweden.
MTG and NRJ have also signed a revenue sharing agreement whereby MTG
Radio Sweden will pay a fixed percentage of MTG Radio Sweden’s sales to
NRJ Group S.A.

The cooperation will result in MTG operating a total of 49 stations out
of the 90 commercial stations in Sweden. The cooperation will enable
the combined operations to deliver an unrivalled daily reach of radio
listeners in Sweden. The technical penetration of RIX FM, which is
already Sweden’s number one national commercial radio network, will also
increase from 69% to 88%.

The latest RUAB independent market research survey, which measures
listener numbers and audience shares, showed that MTG Radio stations in
Sweden attracted a daily audience of 1,352,100 listeners, which is
equivalent to a 17.7% national daily reach. The same survey also showed
that RIX FM’s morning prime time radio show ‘RIX MorronZoo’ is the most
listened to radio show in Sweden with an average daily audience of
618,100 listeners. MTG Radio Sweden reported a 10% year on year growth
in sales in the first quarter of this year. MTG Radio also operates the
‘Metro FM’ station in Stockholm, the ‘Power Hit’ radio stations in
Tallinn (Estonia) and Vilnius (Lithuania) and the Star FM national
stations in Estonia and Latvia, as well as owning a 19% interest in
‘Radio Nova’, which is Finland’s only national commercial radio network.

For further information, please visit, email, or
Hans-Holger Albrecht, President & CEO tel: +46 (0) 8 562
000 50
Matthew Hooper, Investor & Press Enquiries tel: +44 (0) 20 7321 5010

MTG is an international media group with operations in more than 30
countries around the world and principal broadcasting businesses in
Scandinavia, the Baltic States, Hungary and Russia. MTG is the largest
Free-to-air and Pay-TV operator in the Nordic and Baltic regions and the
largest commercial radio operator in Northern Europe. MTG’s Viasat
channels reach over 50 million people in 14 countries every day and MTG
Radio’s stations reach 3 million daily listeners. The Viasat
Broadcasting DTH satellite TV platform offers digital multi-channel TV
packages of over 50 own-produced and third party entertainment channels.
MTG is a leading European direct response TV network operator,
broadcasting home shopping channels into 100 million homes in 52
countries, as well as one of the world’s leading originators and
producers of Reality TV formats.

Modern Times Group MTG AB class A and B shares are listed on the
Stockholmsbörsen O-list (symbols: MTGA and MTGB).

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