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CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. RECEIVES $37.25
MILLION AS SBS EXERCISES CALL OPTION ON ITI NOTES
-Enters Definitive Purchase Agreement for Kanal A in Slovenia-
HAMILTON, BERMUDA, June 29, 2000 - Central European Media Enterprises Ltd.
(CME)(Nasdaq: CETV) announced today that SBS Broadcasting S.A. (SBS) has
exercised their "Call" option on the notes due from International Trading and
Investments Holdings S.A. (ITI Notes) for $37.25 million plus accrued interest.
The ITI Notes have a principal amount of $40.0 million and mature on December
10th 2001. CME originally acquired the ITI Notes as part of the consideration
for the sale of its interest in TVN Poland to ITI in December 1998. The "Call"
option was granted to SBS as part of CME's sale of its Hungarian assets to SBS
in February 2000.
In addition, CME announced today that it has finalized a purchase agreement to
acquire at least a 98% controlling interest in Kanal A, for $12.5 million prior
to August 18, 2000. Kanal A is the second leading commercial television
broadcaster in Slovenia. As part of this agreement $12.5 million of the SBS
proceeds, from the exercise of the "Call" option on the ITI Notes, will be held
in escrow until the earlier of August 18, 2000 and the closing of the Kanal A
acquisition. This transaction is subject to regulatory approval and certain
other conditions.
Fred T. Klinkhammer, President and Chief Executive Officer of CME, said: "The
exercising of the "Call" option on the ITI Notes significantly strengthens our
liquidity position and CME's subsequent agreement to purchase Kanal A will
enable us to provide Slovenia's TV viewers with two compelling and distinct
commercial television channels while increasing the positive cash flow we
currently generate in the market."
Statements made in this press release about the possible acquisition of Kanal A
are forward-looking statements. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy and some of which might not even be anticipated. Future events and
actual results, financial or otherwise, could differ materially from those
described in or contemplated by the forward-looking statements.
CME operates television stations in Central and Eastern Europe and is traded on
the Nasdaq National Market in the U.S. under the symbol "CETV".
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For more information, contact:
Chris Plunkett or Michael Smargiassi
Brainerd Communicators, Inc.
Tel: 212 986-6667
