Central European Media Enterprises Acquires Controlling Interest in Ukrainian Television Assets

Central European Media Enterprises Acquires Controlling Interest in Ukrainian Television Assets

- Continues to Execute on Multi-Channel Strategy -

HAMILTON, Bermuda, Nov. 2 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) today announced that it has entered into an agreement with Dertus Finance Group Limited ("Dertus") to acquire 65.5% of the Ukrainian media holding company, Ukrpromtorg which controls the Kiev TV stations Gravis and Channel 7, a 24-hour local terrestrial broadcaster in Kirovograd and other broadcasting assets. The transaction is valued at approximately US $7.0 million, with the final price subject to completion of due diligence.

In addition to the terrestrial broadcasters, which collectively reach over 4.5 million Ukrainian viewers, Ukrpromtorg owns 100% of a company holding a 24-hour national satellite-broadcasting license. Utilizing this license will allow CME to deliver the acquired local channels to all cable operators and other regional terrestrial broadcasters. Ukrpromtorg also holds a television production company Delta that owns a production studio in the centre of Kiev, which will compliment our current facilities and help us extend production of local news and entertainment.

The minority 33.5% stake in Ukrpromtorg is held by Dertus. CME has the option to acquire from Dertus an additional 21.5% interest in Ukrpromtorg for US $3.2 within four months of acquiring title to the initial 65.5% stake. CME will have management control of Ukrpromtorg and its subsidiaries. According to Ukrpromtorg management, Ukrpromtorg and its affiliates hold no debt at the date of acquisition and their combined revenues in 2004 are estimated at less than US $1 million, delivering a combined net loss of approximately US $90 thousand.

Michael Garin, CME's Chief Executive Officer, commented: "We believe the Ukraine has the greatest growth potential of any of our markets. Following the success of our multi-channel strategy in Romania, this acquisition is an opportunity to replicate our Romanian model and increase our footprint in Ukraine, a nation of 50 million people, through Studio 1+1 and these channels."

"We strongly believe in the multi-channel approach to our business," added Marina Williams, CME's Executive Vice-President. "We will leverage our expertise from Studio 1+1 through these complementary operations, which will help us target specific demographic groups and increase our advertising revenue. We would like to bring high quality programming, including local productions, to the newly acquired channels and further develop the distribution with the aim of reaching at least 45% of Ukrainian television households by the middle of 2006."

Forward Looking Statements

This press release contains forward-looking statements, including statements regarding our business strategies for the acquired channels, our ability to increase their reach and viewership, our investment plans and other commitments. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward- looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the rate of development of advertising markets in countries where we operate, general market and economic conditions in these countries as well as in the United States and Western Europe, the renewals of broadcasting licenses, the ability to acquire programming and the ability to attract audiences, the general regulatory environments where we operate and application of relevant laws and regulations.

CME is a TV broadcasting company with leading networks in six Central and Eastern European countries reaching an aggregate of approximately 90 million people. The Company's television stations are located in Croatia (Nova TV), Czech Republic (TV Nova, Galaxie Sport), Romania (PRO TV, Acasa, PRO Cinema), Slovakia (Markiza), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".

For additional information, please visit http://www.cetv-net.com/

Source: Central European Media Enterprises Ltd.

CONTACT: Romana Tomasova, Director of Corporate Communications, of
Central European Media Enterprises, +44-20-7430-5357, +44-7818-028-619,
romana.tomasova@cme-net.com; or Jonathan Lesko or Mike Smargiassi, Investors,
or Olga Shmuklyer, Press, +1-212-986-6667, all of Brainerd Communicators,
Inc.

Web site: http://www.cetv-net.com/

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