Central European Media Enterprises Announces Final Steps in the Restructuring of Ukraine Operations

Central European Media Enterprises Announces Final Steps in the Restructuring of Ukraine Operations

- CME to increase stake in Kino channel in Ukraine to 100% -

- Studio 1+1 to bring advertising sales in-house -

HAMILTON, Bermuda, Dec. 18 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) announced today that it has entered into a preliminary agreement to buy out its minority partners in the Kino channel in Ukraine. CME also announced that it is launching an in-house sales department at Studio 1+1, its channel in Ukraine.

CME currently owns a 60.4% interest in each of the Kino and Citi channels in Ukraine. The remaining 39.6% interest is owned by Glavred Media Holding ("Glavred") and another minority partner. Kino is an entertainment channel with 55% national reach through a network of local licenses and Citi is an entertainment and culture channel broadcasting in the Kiev region. Under the agreement, CME will acquire 100% ownership in the Kino channel in exchange for transferring to Glavred its ownership interest in the Citi channel and US$10 million in cash. In addition, CME will acquire a 10% ownership interest in Glavred from one of its shareholders for US$ 12 million. The transactions are expected to close in February 2009, upon completion of due diligence of Glavred, the negotiation and execution of definitive transfer agreements and the reissuance of Kino's broadcasting licenses to reflect the change of ownership.

CME also announced that it is setting up an in-house sales department at Studio 1+1 to sell advertising on its channels. Studio 1+1 is therefore terminating its agreement with the sales house Video International. The total incremental cost for restructuring the sales operations is expected to be approximately US$ 10 million.

Adrian Sarbu, CME's President and Chief Operating Officer, said: "The opportunity to gain 100% ownership in the Kino channel is crucial to the delivery of our strategy in Ukraine and our ability to compete through a multichannel model. 100% ownership of the Kino channel will give us full control and allow us to integrate Kino into the Studio 1+1 operations. We will be able to exploit the common programming and operating synergies of the two channels, which will strengthen our position in the Ukrainian market. Launching an in-house sales team at Studio 1+1 brings our Ukraine operations into line with our other markets."

CME is a broadcasting company operating leading networks in seven Central and Eastern European countries with an aggregate population of approximately 97 million people. CME's television stations are located in Bulgaria (TV2 and Ring TV), Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema, Nova Sport and MTV Czech), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia (TV Markiza, Nova Sport and MTV Czech), Slovenia (POP TV and Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International, Kino and Citi). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".

For further information visit: www.cetv-net.com

Forward Looking Statements

This press release contains forward-looking statements, including those related to the performance of obligations by counterparties, our business strategy for Ukraine and expected incremental restructuring costs. 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, general market and economic conditions in our markets as well as in the United States and Western Europe, the general regulatory environments where we operate and application of relevant laws and regulations, future investments in television broadcast operations, the renewals of broadcasting licenses, our ability to implement strategies regarding sales and multi-channel distribution, the rate of development of advertising markets in countries where we operate, our ability to acquire necessary programming and the ability to attract audiences, our ability to obtain additional frequencies and licenses and other business strategies and commitments.

Source: Central European Media Enterprises Ltd.

CONTACT: Romana Tomasova, Director of Corporate Communications, Central
European Media Enterprises, +44 (0)20 7430 5357, romana.tomasova@cme-net.com

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

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