MTG acquires leading Bulgarian online business

Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international
entertainment broadcasting group, today announced that it has signed an
agreement to acquire 70% of the merged assets of Darik News and Net Info (‘the
Operations”) in Bulgaria from Darik Radio, the Bulgarian commercial radio
operator, for an undisclosed cash consideration on a cash and debt free basis.
The combined Operations have a broad range of services across 33 advertising
funded sites, and comprise the market leading digital conglomerate in Bulgaria
in terms of monthly online reach. MTG has the option to acquire the remaining
30% of the Company from Darik Radio within a five year period.
Darik News operates a wide range of websites including news site dariknews.bg;
sports news site gong.bg; and weather site vremeto.bg. Net Info operates the
email platform abv.bg with approximately 3.5 million users; video clip site
vbox7.com; sports news site sportni.bg; weather site sinoptik.bg; and
entertainment news site edna.bg. The combined Darik News and Net Info websites
generated over 750 million monthly page views during the second quarter of 2013,
and had almost 3 million individual monthly users. The combined company
generated pro forma total revenues of EUR 4.2 million (approximately SEK 36
million) and was profitable for the full year 2012.

The transaction is subject to regulatory approval and certain other terms and
conditions. The Group would consolidate the assets within its Bulgarian free-TV
operations, which are part of the Group’s Free-TV Emerging Markets business,
upon completion of the transaction.

The acquisition complements MTG’s current Bulgarian operations, which consist of
five linear TV channels, the Nova Play advertising funded video on demand
website and the Nova News and Nova Sports news sites. The Operations are
expected to generate both operational and financial synergies for the Group. The
acquisition will also enable MTG to offer new and innovative entertainment
solutions to Bulgarian customers, across multiple platforms. The Group’s
Bulgarian media house is the second largest in Bulgaria, and had a combined
commercial audience share of 32.5% in the 18-49 target audience in the second
quarter.

The acquisition is part of MTG’s digital MTGx strategy, which aims to accelerate
digital expansion and innovation. It does not only enable MTG to accelerate the
growth of its broadcasting and online entertainment businesses in Bulgaria, but
also provides a broad platform for continued digital expansion in the region.

Jørgen Madsen Lindemann, President and CEO of MTG, commented: “The acquisition
of the Darik News and Net Info operations is a key milestone in the development
of our Bulgarian presence. It significantly expands our overall customer
proposition in Bulgaria, and will enable us to leverage our content in new and
innovative ways across a number of popular platforms, to reach more people than
ever before with the entertainment of their choice. We will also be able to
extend our advertising proposition and reach, and to offer advertisers more
extensive and finely tuned products than ever before.”

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

Jørgen Madsen Lindemann, President & Chief Executive Officer
Tel:                               +46 (0) 8 562 000 50

Matthew Hooper, Executive Vice President of Corporate Communications
Tel:                               +44 (0) 7768 440 414
Email:                           investor.relations@mtg.se / press@mtg.se
Modern Times Group (MTG) is an international entertainment broadcasting group
with operations that span four continents and include free-TV, pay-TV, radio and
content production businesses. MTG’s Viasat Broadcasting operates free-TV and
pay-TV channels, which are available on Viasat’s own satellite platforms and
third party networks, and also distributes TV content over the internet. MTG is
also the largest shareholder in CTC Media, which is Russia’s leading independent
television broadcaster.

Modern Times Group is a growth company and generated net sales of SEK 13.3
billion in 2012. MTG’s Class A and B shares are listed on Nasdaq OMX Stockholm’s
Large Cap index under the symbols ‘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 6
August 2013.