TV3 ESTABLISHED AS CLEAR NUMBER ONE IN BALTICS – VIASAT LAUNCHES NEW CHANNEL IN ESTONIA

January 4 2005

Modern Times Group MTG AB, the international entertainment broadcasting group, today announced the launch of the successful ‘3+’ channel format in Estonia and that its ‘TV3’ entertainment channels are now the largest channels in each of the three Baltic countries – Estonia, Latvia and Lithuania.

The introduction of the 3+ channel format in Estonia follows the success of 3+ in Latvia, where the channel has already attracted a 5% share of viewing in only its first year. As in Latvia, 3+ is being distributed via Viasat’s DTH satellite platform and third party cable networks and is targeting the Russian-speaking audience that makes up 35% of Estonia’s population. Revenues are derived from the sale of advertising.

The new entertainment channel will feature a combination of movies, Russian series and reality formats, as well as sports. 3+ is showing hit Russian reality TV series including ‘The House 2’ and ‘My Big Fat Obnoxious Fiancee’; talk show ‘The Windows’; news magazine programme ‘On Boulvare’; parodies of Russia’s leading stars in ‘The Puppets’; and prime time blockbuster movies with Russian language voice overs.

Viasat’s principal mass market channel in the Baltics – TV3 – has now established itself as the number one channel in each country. TV3 was the leading channel in Estonia in 2004 with a full year commercial share of viewing of approximately 46% (audience aged 15-49). In Lithuania, TV3 achieved a full year commercial share of viewing of approximately 36% (audience aged 4+) in 2004. TV3 Lithuania also enjoyed a 5% lead over its nearest competitor in the commercially attractive target audience of 15-50 year olds.

TV3 has also established itself as the leading channel in Latvia for the first time ever. The channel recorded over 28% commercial share of viewing amongst the core audience of 15-50 year old viewers for each of the last four months of the year and was the leading channel in Latvia for the period. This performance reflects the success of the channel’s schedule of high rating prime time movies, as well as the launch of access prime time talk show ‘Aina’ and popular new entertainment show ‘Lyrics Board’. TV3’s ‘Bez Tabu’ news programme even attracted more viewers than the two public service channels’ news programming in November.

Hans-Holger Albrecht, President and CEO of MTG, commented: “Our strategy of creating mass market channels, which have become the largest in each country, with separate channel brands to focus on specific audience groups, has proven successful. The launch of 3+ in Estonia follows the success of TV3 in each of the Baltic countries, as well as the powerful combination of TV3 and 3+ in Latvia. The Viasat family of TV channel brands continues to benefit from clear synergies in terms of content acquisition, production, distribution, sales and marketing, which result from our integrated broadcasting platform and enable Viasat to roll-out formats into new territories with high levels of flexibility and efficiency.”

For further information, please visit www.mtg.se, email info@mtg.se, or contact:

Hans-Holger Albrecht, President & CEO
tel: +46 (0) 8 562 000 50

Matthew Hooper, Corporate Communications
tel: +44 (0) 20 7321 5010

Modern Times Group is an international entertainment broadcasting group with operations in more than 30 countries around the world. MTG is the largest Free-to-air and Pay-TV operator in Scandinavia and the Baltics, the largest shareholder in Russia´s fourth largest television network, and the number one commercial radio operator in the Nordic region. The Viasat DTH satellite TV platform offers digital multi-channel TV packages of 50 own-produced and third party entertainment channels to viewers in 15 countries across Europe and Viasat TV channels now reach over 50 million people every day.

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

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