December 18 2009

Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international entertainment broadcasting group, today announced that it will recognise approximately SEK 3,361 million of one-off costs in its results for the fourth quarter and full year 2009. These costs primarily relate to the impairment of the Group’s Bulgarian broadcasting assets. The impairment reflects the deterioration in the economic and financial climate and the challenging advertising market conditions, and follows the recent completion of the Group’s annual asset impairment test.

The one-off costs will be included in the Group’s results for the fourth quarter and twelve months ended 31 December 2009. The costs will be reported as a separate line item above the operating profit (EBIT) line in the Group’s consolidated income statements, and as an adjustment to intangible assets on the Group’s consolidated balance sheets.

EUR 296 million (approximately SEK 3,151 million) of the one-off costs relate to the impairment of the goodwill arising from the Group’s acquisition of 100% of Nova Televizia in Bulgaria for EUR 620 million in 2008.

The Group will also recognise approximately SEK 209 million of one-off costs relating to a reduction in the goodwill balances of the Group’s Slovenian free-TV broadcasting operations; one-off costs for the online social networking business; and the write-down of programming-related assets by the Group’s Baltic free-TV broadcasting operations.

Hans-Holger Albrecht, President and CEO of MTG, commented: “Our Bulgarian business has performed above expectations in terms of increasing its audience and market shares during the year. However, the adverse changes in the operating environment have delayed the anticipated development of the business, and we have now adjusted the value of our assets accordingly. These impairment charges therefore primarily reflect the sharp deterioration in the economic and financial climate over the last year, which has negatively impacted advertising buying and asset pricing. The write-downs do not affect the Group’s financial strength.”

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