MTG signs agreement to acquire LNT free-TV group in Latvia

| Source: Modern Times Group MTG AB Modern Times Group MTG AB 

MTG signs agreement to acquire LNT free-TV group in Latvia

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 100% of AS Latvijas Neatkarīgā Televīzija (‘LNT’) in Latvia
for an undisclosed cash consideration. LNT is the second largest free-TV
operator in Latvia, and broadcasts national channel LNT, Russian language
channel TV5 and entertainment channel LMK. The closing of the transaction is
subject to regulatory approval by the Latvian Competition Council.  

LNT generated revenues of less than EUR 7 million, and an EBITDA loss for the
first nine months of 2011. Launched in 1996 and headquartered in Riga, LNT
broadcasts a broad range of locally produced and internationally acquired
entertainment content, as well as news coverage and movies.

MTG’s existing free-TV operations in Latvia comprise the TV3, 3+ and TV6
channels.

Upon completion of the transaction, MTG will assume full operational control of
the business and consolidate LNT’s results in its accounts. The results will be
reported within the Viasat Broadcasting business area as part of the Group’s
Baltic activities in the Free-TV Emerging Markets operating segment.

Hans-Holger Albrecht, President and CEO of MTG, commented: “MTG is a growth
company and we consistently seek opportunities to build our existing market
positions and establish new ones. LNT is such an opportunity and would be an
excellent fit with our existing operations in Latvia and across the region.
LNT’s channel portfolio complements our own offering, which we have developed
over the past 14 years, and this transaction would enable us to provide viewers
with an even greater variety and quality of Latvian and Russian language
programming. With one of our two play-out facilities now located in Riga, we are
committed to continuing to invest in Latvia and the Baltic region as the
advertising markets stabilise and return to growth.”

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

Hans-Holger Albrecht, Chief Executive Officer
Tel:                               +46 (0) 8 562 000 50

Matthew Hooper, Head of Corporate Communications
Tel:                               +44 (0) 7768 440 414
Email:                           investor.relations@mtg.se / press@mtg.se

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