License Reissued to Reflect the New Ownership Structure HAMILTON, Bermuda, July 1 /PRNewswire-FirstCall/ -- Central EuropeanMedia Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) todayannounced that on June 30, 2008 it completed the purchase of 30% minorityinterest in the Studio 1+1 group. CME has increased its ownership of Studio1+1 to 90% and the remaining 10% interest is subject to a put and calloption. The Ukrainian media council has reissued the license for Studio 1+1reflecting the new ownership structure. Michael Garin, CME's Chief Executive Officer, commented: "Completion ofthis acquisition represents the successful execution of our longstandinggoal. I would like to thank Boris Fuchsmann and Alexander Rodnyansky fortheir outstanding contribution in developing Studio 1+1 to its currentposition. Ukraine represents more than 50% of the total population withinthe CME footprint. Our objective is now to integrate all of our key Ukraineassets and build Ukraine into our largest business in the CME family." Adrian Sarbu, CME's Chief Operating Officer, commented: "Ukraine is ahuge opportunity for CME and we will now work towards clear marketleadership. We will focus on local content production and the transfer ofexpertise from our other markets. Sole control of our operations gives usthe ability to drive growth and margins as we did in the Slovak Republic.We believe our Ukraine business can be just as profitable and successful asour other markets." As previously announced, the 30% interest CME acquired includesinterests subject to options that Igor Kolomoisky assigned to CME. Thetotal consideration paid for the purchase of the 30% interest was US$219.6million, of which US$79.6 million was paid in cash to Messrs Fuchsmann andRodnyansky and US$140 million was paid to Mr. Kolomoisky. Boris Fuchsmann and Alexander Rodnyansky have the right to put theirremaining 10% interest in the Studio 1+1 group to CME and CME has the rightto call this 10% interest from them. The put option has an initial minimumprice of US$95.4 million, which increases to US$102.3 million from thefirst anniversary of the completion and to the greater of US$109.1 millionor an independent valuation from the second anniversary of the completion.The call price is initially set at US$109.1 million. From the firstanniversary of the completion, the call price will be based on anindependent valuation with a minimum price of US$109.1 million. If CMEexercises its call rights, Messrs Fuchsmann and Rodnyansky have the rightto receive consideration in cash or shares of CME's Class A Common Stock.Mr. Fuchsmann continues to hold one of the three seats on the SupervisoryBoard of Studio 1+1. Launched in 1997, Studio 1+1 is one of the most popular nationalbroadcasters in Ukraine, reaching almost 47 million people with an all-dayaudience share in 18+ demographic group of 13% and prime time audienceshare of 14.6% in the first six months of 2008. Forward Looking Statements This press release contains forward-looking statements, includingstatements regarding the future performance of our stations and ourbusiness strategies and commitments. For these statements and all otherforward-looking statements, we claim the protection of the safe harbor forforward-looking statements contained in the Private Securities LitigationReform Act of 1995. Forward-looking statements are inherently subject torisks and uncertainties, many of which cannot be predicted with accuracy orare otherwise beyond our control and some of which might not even beanticipated. Future events and actual results, affecting our strategic planas well as our financial position, results of operations and cash flows,could differ materially from those described in or contemplated by theforward-looking statements. Important factors that contribute to such risksinclude, but are not limited to, the rate of development of advertisingmarkets in countries where we operate, general market and economicconditions in these countries as well as in the United States and WesternEurope, the renewals of broadcasting licenses, the ability to acquireprogramming and the ability to attract audiences, the general regulatoryenvironments where we operate and application of relevant laws andregulations. CME is a TV broadcasting company with leading networks in six Centraland Eastern European countries reaching an aggregate of approximately 90million people. The Company's television stations are located in Croatia(Nova TV), Czech Republic (TV Nova, Galaxie Sport, Nova Cinema), Romania(PRO TV, Acasa, PRO Cinema, Sport.ro, MTV Romania, PRO TV International),Slovakia (TV Markiza), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1,Studio 1+1 International, Kino and Citi). CME is traded on the NASDAQ andthe Prague Stock Exchange under the ticker symbol "CETV". For additional information, please visit http://www.cetv-net.com.