CDON GROUP EXPANDS ONLINE TOY RETAILER ACROSS NORDICS, INTRODUCES ONLINE FASHION RETAILER IN GERMANY AND LAUNCHES CDONGROUP.COM

CDON GROUP EXPANDS ONLINE TOY RETAILER ACROSS NORDICS, INTRODUCES ONLINE
FASHION RETAILER IN GERMANY AND LAUNCHES CDONGROUP.COM

Modern Times Group MTG AB (publ.) (‘MTG' or ‘the Group'), the
international entertainment broadcasting group, today announced that
wholly-owned subsidiary CDON Group AB (‘CDON Group') has launched online
toy retailer Lekmer.com in Norway, and will launch it in Denmark and
Finland in the near future. Lekmer's full product offering and customer
support will be made available in local languages across the Nordic
region to correspond with the local launches of the toy retailer. The
Group also announced that it has introduced a German version of
pan-Nordic fashion retailer Nelly.com, which now also offers German
speaking customer care. CDON Group has also launched its corporate web
site www.cdongroup.com (http://www.cdongroup.com/), as part of the
proposed demerger and public listing of the company. The web site offers
information on CDON Group, and makes available the 2009 Annual Report
and CDON Group's financial results for the second quarter and first six
months of 2010. Further information on CDON Group and on the demerger
process will be made available in due course.

CDON Group acquired 90.1% of Swedish online toy retailer Lekmer on 31
March 2010. The online store offers a wide range of toys from leading
brands including Alga, Mattel, Brio, Micki, Babybjörn, Disney, Hasbro,
Lego and Playmobil. Swedish fashion retailer Nelly.com was acquired by
CDON Group in August 2007, and expanded into Norway in June 2008, and
into Denmark and Finland in October 2008.

The pan-Nordic roll-out of Lekmer.com follows similar successful
expansions by the Group's other brands - CDON.COM, Gymgrossisten and
Nelly.com, whilst the introduction of Nelly.com in Germany marks the
first expansion outside the Nordic region. A beta version of Nelly.com
in Germany was launched in May, and the initial marketing through
affiliate programmes and online social media has now been extended to
include TV advertising campaigns to drive up brand awareness levels. The
fulfilment for all of Nelly.com's operations is handled from the
company's centralised warehouse in Borås (Sweden).

Hans-Holger Albrecht, President and CEO of MTG and Chairman of CDON
Group, commented: “These expansions are in line with our growth strategy
and demonstrate the scalability of CDON Group's operations and brands.
They can be achieved cost-effectively and rapidly precisely because of
the Group's integrated marketing and logistics infrastructure. We look
forward to further developing the Group's market presence, brands and
product offerings moving forward.”

“The launch of CDON Group's web page is part of the ongoing demerger
process, and will raise the profile of CDON Group as a leading
independent Nordic internet retailing group.”

 

ABOUT CDON GROUP 

CDON Group comprises all of MTG's internet retailing operations and is
expected to be spun-off from MTG by means of a demerger and distribution
of CDON Group shares to MTG shareholders in the fourth quarter of 2010.

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 of CDs, DVDs, computer games, books and electronic
products, as well as music downloads and on-demand film streaming
services. Finnish internet book retailer BookPlus.fi was acquired in
2007 and Swedish online toy retailer Lekmer.se was acquired in April
2010.

CDON Group's Fashion business was established in 2007 with the
acquisition of fashion retailer Nelly.com and children's clothing
retailer LinusLotta.com, whilst shoe retailer Heppo.com was launched on
31 August 2010. The Sports & Health business was established in 2008
with the acquisition of nutritional supplement retailer
Gymgrossisten.com and dietary and health supplement retailer
Bodystore.com.

CDON Group reported a 27% year on year sales growth to SEK 1.441 (1,131)
million in the first nine months of 2010. Operating income increased by
31% year on year to SEK 97 (75) million in the first nine months of
2010, with a stable operating margin of 7% (7%).

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

Please visit www.mtg.se (http://www.mtg.se/) or
www.cdongroup.com (http://www.cdongroup.com/) for further information
about CDON Group and its businesses.

***

For further information, please visit www.mtg.se (http://www.mtg.se/) or
contact:

Hans-Holger Albrecht, President & CEO
Tel: +46 (0) 8 562 000 50 

Investor & Analyst Enquiries:
Matthew Hooper
Tel: +44 (0) 7768 440 414
Email: investor.relations@mtg.se (investor.relations@mtg.se) 

Media Enquiries:
Bert Willborg
Tel: +44 (0) 791 2280 850
Email: bert.willborg@mtg.se (bert.willborg@mtg.se)