MTG ANNOUNCES APPOINTMENTS TO CDON GROUP BOARD OF DIRECTORS

MTG ANNOUNCES APPOINTMENTS TO CDON GROUP BOARD OF DIRECTORS

Modern Times Group MTG AB (publ.) (‘MTG' or ‘the Group'), the
international entertainment broadcasting group, today announced a number
of new appointments to the Board of Directors of wholly-owned MTG
subsidiary CDON Group AB (‘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. Lars-Johan Jarnheimer, Mia
Brunell Livfors and Henrik Persson have been appointed to the CDON Group
Board of Directors as Non-Executive Directors. Hans-Holger Albrecht,
Anders Nilsson and Mathias Hermansson are already members of the Board,
and Hans-Holger Albrecht is Chairman of the CDON Group Board.

Hans-Holger Albrecht has served as President and Chief Executive Officer
of MTG since 2000, prior to which he served as Head of the Group's
Pay-TV operations, as President of Viasat Broadcasting and as Chief
Operating Officer of MTG. Hans-Holger is co-chairman of CTC Media, Inc.,
which is Russia's biggest independent TV broadcaster and in which MTG is
the largest shareholder with a 38.9% equity interest. Hans-Holger has
also been a member of the Board of Directors of Millicom International
Cellular S.A. since May 2010 and is a member of the Board of the
International Emmy Association in New York. 

Lars-Johan Jarnheimer is independent of MTG, and the management and
shareholders of CDON Group. Lars-Johan is currently a member of the
Board of Directors of INGKA Holding B.V. (the parent company of the IKEA
Group of Companies), Apoteket AB, Seamless Distribution AB,  Arvid
Nordquist Handels AB and  Chairman of the Non Governmental Organisation
BRIS (Children's Rights in Society). Lars-Johan served as Chief
Executive Officer of Tele2 AB from 1999 to 2008, and previously held
various positions at IKEA, Hennes & Mauritz, SARA Hotels, SAAB Opel
Sverige AB, ZTV and Comviq.

Mia Brunell Livfors and Henrik Persson represent Investment AB Kinnevik,
which is MTG's largest shareholder and will therefore become CDON
Group's largest shareholder following the planned demerger from MTG.

Mia Brunell Livfors has served as Chief Executive Officer of Investment
AB Kinnevik since 2006, prior to which Mia served as Chief Financial
Officer of MTG between 2001 and 2006 and in various financial management
positions between 1992 and 2001. Mia has been Chairman of the Board of
Directors of Metro International S.A. since 2008, and is also a
Non-Executive Director of Millicom International Cellular S.A., Tele2
AB, Transcom Worldwide S.A. and H & M Hennes & Mauritz AB.

Henrik Persson has been Head of Investments at Investment AB Kinnevik
since 2007 and was previously Kinnevik's Director of Corporate
Communications between 2004 and 2007. Henrik has been a member of the
Board of Directors of Black Earth Farming Ltd since 2006, of Kontakt
East Holding AB since 2006, of Mellersta Sveriges Lantbruks AB since
2007 and of Relevant Traffic Europe AB since 2006.

Anders Nilsson has served as Chief Operating Officer of MTG and Chief
Executive Officer of MTG's Online business area since January 2008.
Anders has also been Head of MTG's Bulgarian TV operations since October
2008, Head of the Group's Baltic free-TV operations since February 2009,
and Head of the Group's free-TV operations in Slovenia since March
2010. Anders has also held senior management positions within MTG Radio
and MTG's former Publishing business, was Chief Operating Officer of MTG
between 2000 and 2003 and was Head of MTG Sweden between 2003 and 2007.
He serves as Chairman of the Board of Directors in the search engine
optimisation and search engine marketing company Relevant Traffic AB.
Anders joined MTG in 1992.

Mathias Hermansson has served as Chief Financial Officer of MTG since
March 2006, prior to which he was MTG Group Financial Controller between
2001 and 2006 and also held various financial positions at Viasat
Broadcasting, MTG Radio and MTG Internet Retailing. Mathias has also
served as Finance Director of former MTG subsidiary Metro International
S.A.'s North American operations. He joined MTG in 1999 and previously
worked for Unilever Sweden. Mathias has been a. member of the Board of
Directors of CTC Media, Inc. since 2009.

The appointment of an additional independent and Non-Executive Director
to the CDON Group Board will be announced in due course.

Hans-Holger Albrecht, President and CEO of MTG and Chairman of CDON
Group, commented: “We are delighted to have been able to strengthen the
Board of CDON Group by adding a number of new Board members who
represent the current or future shareholders, have the relevant industry
sector knowledge, have experience of managing growth companies, or have
complementary industry backgrounds that will add invaluable insight and
guidance to the ongoing strategic development of this market leading
business. The process to demerge CDON Group from MTG and distribute its
shares to MTG shareholders is ongoing and expected to be completed in
the fourth quarter of 2010.”

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 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 recently 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, and 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 26% year on year sales growth to SEK 927 (733)
million in the first half of 2010. Operating income increased 55% year
on year to SEK 66 (43) million in the first half of 2010, and the
business therefore generated an increased operating margin of 7% (6%).

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/) 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)