MTG ANNOUNCES INTENTION TO DISTRIBUTE INTERNET RETAILING BUSINESS TO MTG SHAREHOLDERS

MTG ANNOUNCES INTENTION TO DISTRIBUTE INTERNET RETAILING BUSINESS TO MTG
SHAREHOLDERS 

Modern Times Group MTG AB (publ.) (‘MTG' or ‘the Group'), the international
entertainment broadcasting group, today announced its intention to demerge its 
Internet Retailing business by means of the distribution of shares in CDON Group
to MTG's shareholders over the next 6 to 9 months. CDON Group comprises all of
the operations of MTG Internet Retailing Group AB. Further details about the
demerger process will be announced in due course. 


Handelsbanken Capital Markets has been appointed as advisor to MTG on the
demerger of CDON Group. MTG has also received interest in CDON Group from third
parties, which will be reviewed as part of the ongoing demerger process.  

CDON Group comprises the Nordic market leading internet retailing brands  in
each of its divisions, which comprise Entertainment (CDON.COM, BookPlus.fi,
Lekmer.se), Health & Sports (Gymgrossisten.com,  Bodystore.com) and Fashion
(Nelly.com, LinusLotta.com). Localised versions of CDON.COM, Nelly.com and
LinusLotta.com are available across the Nordic region; Gymgrossisten.com in
Sweden, Norway and Finland; and Bodystore.com and Lekmer.se in Sweden.

A total of 12.4 million products were sold in 2009 and delivered in 4.7 million
individual packages.. CDON Group's sales grew by 36% year on year to SEK 1,746
(1,286) million in 2009, and the business generated SEK 125 (83) million of
operating income with an increased operating margin of 8% (5%). The
Entertainment business accounted for 76% of 2009 sales and reported 26% growth
for the full year while the Health & Sports division accounted for 12% of 2009
sales and generated 45% growth for the full year, and the Fashion business
accounted for 12% of sales and reported 157% growth for the year. 

Hans-Holger Albrecht, President and CEO of MTG, commented: “We are very proud of
the development of the CDON Group into a market leading internet retailer over
the past 10 years. The business has primarily grown organically, but has also
selectively acquired a number of complementary brands in recent years that
create considerable synergies for the business and enable it to benefit from the
ongoing shift of retail sales from the high street to the internet. The
profitability of the business demonstrates the efficient structure and
management of this growth, and compares favourably with the company's
international peer group. 

“The spin-off is a natural step considering the focus within MTG on our core
broadcasting businesses, our focus on delivering shareholder returns, and the
benefit for CDON Group of an independent profile as a high growth regional
market leader. We will continue to work closely with CDON Group moving forward
to support its further development.

“The proposed demerger does not reflect any change to our online digital
broadcasting strategy. We will continue to expand our online broadcasting
presence by the further development of our fast growing Viasat OnDemand online
video streaming service. We already have the most competitive online TV content
offering in the Nordic region, which combines the free catch-up services for our
own and leading third party channels, as well as paid-for content including over
2,000 movies, live coverage of major sports events such as UEFA Champions League
football, Formula One motor-racing and NHL ice hockey.”


ABOUT CDON GROUP

MTG's internet retailing business was launched in February 1999 with the
introduction of CDON.COM, which initially sold music CDs via internet sites in
Sweden, Norway and Denmark. CDON.COM is now the number one online retailer of
entertainment products in the Nordic region, with a broad offering including
CDs, DVDs, computer games, books, electronic products, as well as  music
download and on-demand film streaming services. Finnish internet book retailer
BookPlus.fi was then acquired in 2007 and Swedish online toy retailer Lekmer.se
has just been acquired in April 2010.

The Fashion business was established in 2007 with the acquisition of fashion
retailer Nelly.com and children's clothing retailer LinusLotta.com, and the
Health & Sports division was added in 2008 with the acquisition of nutritional
supplement retailer Gymgrossisten.com and dietary and health supplement business
Bodystore.com. 

Mikael Olander has been President and Chief Executive Officer of CDON since 2000
and of MTG Internet Retailing since it was established in 2007.

Please visit www.mtg.se for further information about CDON Group and its
businesses. 


***

For further information, please visit www.mtg.se or contact:

Hans Holger Albrecht, Chief Executive Officer
Tel:       		+46 (0) 8 562 000 50
 
Investor & Analyst Enquiries:
Matthew Hooper
Tel: +44 (0) 7768 440 414
Email:   		investor.relations@mtg.se 
                                                                                
   
Media Enquiries:
Bert Willborg		
Tel: +44 (0) 791 2280 850
Email:   		bert.willborg@mtg.se   	


Modern Times Group is a leading international entertainment broadcasting group
with the largest geographical broadcast footprint in Europe. MTG's Viasat
Broadcasting is the leading free-TV and pay-TV operator in Scandinavia and the
Baltics, and has broadcasting operations in Bulgaria, Czech Republic, Hungary,
Slovenia, Russia, Ukraine and Ghana. Viasat's free-TV and pay-TV channels and
pay-TV platforms attract a total of 125 million viewers in 31 countries. MTG is
also the major shareholder in Russia's largest independent television
broadcaster (CTC Media - Nasdaq: CTCM), and the number one commercial radio
operator and internet retailer of entertainment products in the
Nordic region.

Modern Times Group MTG AB Class A and B shares are listed on Nasdaq OMX
Stockholm's Large Cap market (‘MTGA' and ‘MTGB').

The information in this announcement is that which Modern Times Group MTG AB is
required to disclose under the Securities Market Act and/or the Financial
Instruments Trading Act. It was released for publication at 08.00 CET on 19
April 2010.