Permira and KKR Complete Acquisition of SBS Broadcasting S.A.

Permira and KKR Complete Acquisition of SBS Broadcasting S.A.

LUXEMBOURG, October 18/PRNewswire/ --

- Markus Tellenbach Continues to Lead SBS as Chief Executive Officer

- Board Appointed for New Company

SBS Broadcasting S.A. (nasdaq: SBTV) and PKS Media S.à.r.l, a company
controlled by funds advised by two leading private equity firms, Permira and
KKR, announced today that PKS Media has completed the previously announced
acquisition of substantially all of the assets and liabilities of SBS. PKS
Media will be renamed SBS Broadcasting S.à.r.l.

Markus Tellenbach will continue as Chief Executive Officer. Mr.
Tellenbach will be appointed to the Board of Directors of the new holding
company for the SBS group, together with Harry Evans Sloan, former executive
chairman of SBS, and Juergen von Schwerin, who will continue as Chief
Financial Officer. The new board will also include Lord Hollick, a KKR
executive, as chairman, Götz Mäuser, a Permira partner, as vice chairman,
Arnold Bahlmann, a former member of Bertelsmann's executive board and an
advisor to Permira, Katrin Wehr-Seiter of Permira and Johannes Huth and
Dominic Murphy of KKR.

SBS Broadcasting S.A., the former holding company, which is
being renamed "TVSL, société anonyme", is now entering into a liquidation
process under which it will distribute the proceeds of the asset sale and
certain other amounts to SBS shareholders and holders of SBS stock options.

The record date for the liquidation distribution is the
closing date, October 18, 2005. Each shareholder of the former SBS on the
record date is entitled to receive payment of the liquidation distribution,
which is currently expected to be made on or about November 8, 2005. Based on
the factors described in the Shareholders' Circular dated September 1, 2005,
the liquidation distribution is expected to be approximately EUR46 per share.

As a convenience to shareholders, TVSL (the former SBS) will
offer each shareholder of the former SBS on the record date the opportunity
to elect to receive the U.S. dollar equivalent in cash of the euro amount of
the liquidation distribution. For shareholders that so elect, the euro amount
will be converted into U.S. dollars at a market rate obtained by TVSL (net of
expenses of the conversion of euros into U.S. dollars).

Harry Evans Sloan, founder and former executive chairman of
SBS, commented, "The acquisition of SBS by funds advised by Permira and KKR
represents a very attractive transaction for our shareholders. It has been my
pleasure to have led SBS since I founded the company in 1990, and I look
forward to working with Permira, KKR and my colleague and friend Markus
Tellenbach, one of the finest executives I have had the pleasure of working
with. I would like to thank the employees of SBS, who have contributed so
much to the success of the Company."

Mr. Sloan concluded, "The transaction represents the
endorsement by Permira and KKR, two of the world's leading private equity
firms, of SBS, its business model and its growth strategy and will foster
SBS's future success."

Markus Tellenbach, Chief Executive Officer of SBS, stated, "I
am pleased that SBS has grown into one of Europe's leading companies. Harry
Sloan and the SBS Board gave me and the rest of the management team the
support needed to transform SBS."

Mr. Tellenbach also said, "I look forward to working with
Permira, KKR, the new board and the SBS management team to expand and
diversify our presence in Europe and to continue to build upon SBS's growth
story. I am very happy that Lord Hollick, a recognized industry leader, has
agreed to become the chairman. "

Permira and KKR stated that they are very pleased with the
acquisition and that they are confident that the success of SBS under the
leadership of Markus Tellenbach will continue.

Deutsche Bank acted as financial advisor to the special
committee of SBS that considered and negotiated the transaction, and Sullivan
& Cromwell LLP and Arendt & Medernach acted as the committee's legal
advisors. Lehman Brothers acted as financial advisor to Permira and KKR, and
Freshfields Bruckhaus Deringer and Simpson Thacher & Bartlett LLP acted as
their legal advisors. Barclays Capital, Lehman Brothers and Royal Bank of
Scotland provided debt financing for the transaction.

Forward-Looking Statements

The statements in this press release regarding the timing and
expected amount for the liquidation distribution are forward-looking. The
timing for and amount of the liquidation distribution may change. For
information regarding factors that could affect the timing for and amount of
the distribution to shareholders and payments to option holders, please see
the Shareholders' Circular, which is available on SBS's website at
www.sbsbroadcasting.com.

About SBS Broadcasting

SBS is a European commercial television and radio broadcasting company
with operations in Western and Central Europe. Countries where SBS currently
has broadcasting assets include: Belgium (Flanders), Denmark, Finland,
Greece, Hungary, The Netherlands, Norway, Romania and Sweden.

About Permira

Permira is a leading European-based private equity firm.
Permira acts as advisor to the 18 Permira Funds, totaling approximately EUR11
billion, that have been raised since 1985. These funds have invested in over
260 transactions in 15 different countries, in companies across a variety of
sectors and geographies, at all stages of the business lifecycle. For further
information about Permira, visit www.permira.com.

About KKR

KKR is one of the world's oldest and most experienced private
equity firms specializing in management buyouts, with offices in New York,
Menlo Park, London, Paris and Hong Kong. Over the past 29 years, funds
advised by KKR have invested in more than 130 transactions involving over
US$162 billion of total financing. For further information about KKR, visit
www.kkr.com.

www.sbsbroadcasting.com

Source: SBS Broadcasting

For SBS Broadcasting: Investors: Mike Smargiassi /Jon Lesko, Brainerd Communicators, Tel: +212-986-6667. Press: Jeff Pryor, Pryor & Associates, Tel: +818-338-3555. For Permira and KKR: Press: James Leviton/Melanie Gerlis, Finsbury, Tel: +44-207-251-3801

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