Proposed amendments to Russian Mass Media Law

Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international
entertainment group, notes the announcement from CTC Media, Inc., of which MTG
owns 38%, regarding proposed amendments to the Russian law “On Mass Media”. The
full text of the CTC Media announcement follows below.

MTG is carefully following the progress of the proposed amendments and analysing
what potential actions may be taken, in order to protect shareholders’
interests, in the event that the law is enacted. This applies both to the
shareholding in CTC Media and MTG’s other TV and broadcasting business interests
in Russia.
CTC Media’s announcement reads as follows:

“Moscow, Russia – September 25, 2014 – CTC Media, Inc. (“CTC Media” or the
“Company”) (NASDAQ: CTCM), Russia’s leading independent media company, has noted
the proposed amendments to the Russian law “On Mass Media” that passed the first
reading on September 23, 2014 in the lower house of the Russian Parliament, the
State Duma. The Company notes that the proposed law, if enacted in its current
form, would limit direct or indirect foreign ownership of Russian mass media
businesses, and applies to both existing and future foreign ownership interests.
The law would come into force on January 1, 2016, by which time, according to
the existing version of the proposed amendments, each Russian mass media entity,
including television broadcasters, would have to comply with the requirement
that non-Russian entities and individuals in the aggregate beneficially own no
more than 20% of the relevant mass media entity. Russian entities and
individuals that beneficially own more than 20% of Russian mass media businesses
through off-shore holding structures will have an additional year until January
2017 in which to restructure such foreign holding structures. The proposed
amendments are subject to a further two readings in the Lower House and then
Federation Council and Russian Federation President confirmation. The second
reading is scheduled for Friday September 26, 2014.

CTC Media is a Delaware corporation that directly and indirectly owns 100% of
the shares of a series of Russian legal entities that operate primarily
broadcast media entertainment businesses in Russia and the CIS. CTC Media’s
shares are listed on the NASDAQ stock exchange in the US and its stockholders
include MTG Russia AB, a Swedish company that is 100% directly and indirectly
owned by Modern Times Group MTG AB, which is a Swedish listed company, and holds
approximately 39% of CTC Media’s common stock; Telcrest Investments Limited, a
Cypriot private limited company that is understood to be beneficially owned by
Russian entities and individuals and holds approximately 25% of CTC Media’s
common stock; and a number of public stockholders including US and European
institutional and individual investors, which together hold the remaining
approximately 36% of CTC Media’s common stock.

CTC Media is closely monitoring these developments and evaluating their
potential impact on the Company and its stockholders. At the same time, CTC
Media is considering all potential actions that the Company and its stockholders
may take, both in order to comply with the law if enacted and to protect their
interests.”

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

Investors & Analysts
Tel:                      + 46 (0) 73 699 2714
Email:                  investor.relations@mtg.se

Journalists
Tel:                      + 46 (0) 73 699 2709
Email:                  press@mtg.se
Modern Times Group (MTG) is an international entertainment group with operations
that span six 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 14.1
billion in 2013. 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 08.05 CET on 26
September 2014.