CTC Media Settles Dispute With Former CEO

CTC Media Settles Dispute With Former CEO

MOSCOW, December 21/PRNewswire-FirstCall/ -- CTC Media, Inc. ("CTC Media" or the
"Company") (NASDAQ: CTCM), Russia's leading independent media company, today
announced that it has entered into a voluntary agreement with its former
Chief Executive Officer, President and non-executive Director, Alexander E.
Rodnyansky, to settle the lawsuits filed by the Company in November 2009. All
disputes between the parties have been resolved by the settlement.

According to the terms of the settlement, Mr. Rodnyansky has
resigned from the Company's Board of Directors with immediate effect and has
forfeited one third of the stock appreciation rights granted to him in 2003
and one third of the vested stock options granted to him in 2006. The Company
will settle the remaining value of the stock appreciation rights by issuing
2,072,533 common shares to Mr. Rodnyansky, and by paying him US$25.9 million
in cash. Both the share issuance and cash settlement are expected to be
finalized before the end of 2009, and will therefore be reflected in CTC
Media's financial results for the fourth quarter and full year 2009. Mr.
Rodnyansky's options to acquire 1,836,826 common shares will be exercisable
until June 18, 2010 at the previously set price of $16.95 per share, but no
further share options will vest. Mr. Rodnyansky will continue to be subject
to certain confidentiality obligations, and the settlement otherwise releases
him from his post-service restrictions.

CTC Media filed civil complaints against Mr. Rodnyansky in the
Supreme Court of the State of New York for the County of New York and the
Delaware Chancery Court on November 9, 2009, claiming breaches of fiduciary
duty and contractual obligations. Under the terms of the settlement, the
cases will be dismissed, with prejudice. The settlement does not constitute
an admission of liability by any party.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia,
with operations throughout Russia and elsewhere in the CIS. It operates three
free-to-air television networks in Russia - CTC, Domashny and DTV -, Channel
31 in Kazakhstan and TV companies in Uzbekistan and Moldova. CTC Media also
owns two TV content production companies - Costafilm and Soho Media. The
Company's common stock is traded on The NASDAQ Global Select Market under the
symbol "CTCM". For more information about CTC Media, please visit
http://www.ctcmedia.ru.

For further information, please contact:

Investor Relations
Ekaterina Ostrova
Tel: +7-495-783-3650
ir@ctcmedia.ru

Media Relations
Ekaterina Osadchaya
Angelika Larionova
Tel: +7-495-785-6333
pr@ctcmedia.ru

Source: CTC Media, Inc

For further information, please contact: Investor Relations, Ekaterina Ostrova, Tel: +7-495-783-3650, ir@ctcmedia.ru. Media Relations, Ekaterina Osadchaya, Angelika Larionova, Tel: +7-495-785-6333, pr@ctcmedia.ru

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