CME take over Galaxie Sport

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Central European Media Enterprises Ltd. (CME) announced that it has acquired 100% of Galaxie Sport, the leading cable sports channel serving the Czech Republic and the Slovak Republic, for CZK 118.7m (E 4.05m) from PPF (Cyprus) Ltd. Galaxie Sport's offerings compliment CME's market leading television networks TV Nova in the Czech Republic and Markiza TV in the Slovak Republic.

Commenting on the announcement, Michael Garin, Chief Executive Officer of CME, said, "Following the success of our initial cable channel initiatives in Romania, this acquisition is an attractive opportunity to leverage our management and leading terrestrial network operations in the Czech Republic and Slovak Republic to expand into cable. As our markets evolve, we remain committed to seeking avenues to prudently expand into new media businesses to take full advantage of the growth of consumer purchasing power and commercial advertising across our footprint."

Galaxie Sport broadcasts high quality sports and sport-related programming in the Czech Republic and Slovak Republic. Galaxie Sport owns valuable broadcast license rights to some of the most popular sports programming in its markets including the English Premier League football, Italian Series A, and the Spanish Primera Liga. Galaxie Sport will also have certain broadcast rights to Forumla 1 programming as part of a TV Nova contract beginning in 2006. The channel also produces 16 sports shows weekly, as well as daily sports news programs in the Czech and Slovak languages.

The combined Czech Republic and Slovak Republic markets have a population of approximately 15.6 million people representing approximately 6 million households. Cable homes passed in the combined markets are approximately 1.8 million households. Galaxie Sport currently has carriage agreements with all of the largest cable distributors in the Czech Republic and Slovak Republic reaching over 700,000 subscribers.

The consideration includes the acquisition of two loans in the amount of CZK 69.2m (E 2.36m) that had been due from Galaxie Sport to PPF. Galaxie Sport held no significant cash or debt (other than two loans mentioned above) at the date of acquisition. Galaxie Sport reported revenues of approximately CZK 106.2m (E 3.62m) in 2004 and negative net operating income of CZK 14.0m (E 0.48m).

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".