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| BERMUDA                                                             | 98-0438382                             |
|---------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (IRS      Employer Identification No.) |
|                                                                |                                   |
| Clarendon      House, Church Street, Hamilton                       | HM      CX Bermuda                     |
| (Address      of principal executive offices)                       | (Zip      Code)                        |

| Large      accelerated filer x | Accelerated      filer o | Non-accelerated      filer o | Smaller      reporting company o |
|--------------------------------|--------------------------|------------------------------|----------------------------------|

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| Document                                                                                         | Location      in Form 10-K in Which Document is Incorporated |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------|
| Registrant’s      Proxy Statement for the 2009 Annual General Meeting of      Shareholders | Part      III                                                |

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ONT

|          |         |                                                                                                              | Page   |
|---------------|--------------|-------------------------------------------------------------------------------------------------------------------|--------|
| PART      I   |         |
|          | Item      1  | Business                                                                                                          | 5      |
|          | Item      1A | Risk Factors                                                                                                      | 33     |
|          | Item      1B | Unresolved Staff Comments                                                                                         | 41     |
|          | Item      2  | Properties                                                                                                        | 41     |
|          | Item      3  | Legal Proceedings                                                                                                 | 42     |
|          | Item      4  | Submission of Matters to a Vote of Security      Holders                                                          | 42     |
|          |         |                                                                                                              |   |
| PART      II  |         |
|          | Item      5  | Market for Registrant's Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 43     |
|          | Item      6  | Selected Financial Data                                                                                           | 44     |
|          | Item      7  | Management's Discussion and Analysis of Financial Condition and      Results of Operations                        | 46     |
|          | Item      7A | Quantitative and Qualitative Disclosures About Market      Risk                                                   | 103    |
|          | Item      8  | Financial Statements and Supplementary Data                                                                       | 105    |
|          | Item      9  | Changes in and Disagreements with Accountants on Accounting and      Financial Disclosure                         | 173    |
|          | Item      9A | Controls and Procedures                                                                                           | 173    |
|          | Item      9B | Other Information                                                                                                 | 176    |
|          |         |                                                                                                              |   |
| PART      III |         |
|          | Item      10 | Directors, Executive Officers and Corporate      Governance                                                       | 176    |
|          | Item      11 | Executive Compensation                                                                                            | 176    |
|          | Item      12 | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters               | 176    |
|          | Item      13 | Certain Relationships and Related Transactions, and Director      Independence                                    | 176    |
|          | Item      14 | Principal Accountant Fees and Services                                                                            | 176    |
|          |         |                                                                                                              |   |
| PART      IV  |         |
|          | Item      15 | Exhibits and Financial Statement Schedule                                                                         | 177    |
|          |         |                                                                                                              |   |
| SIGNATURES    | 184          |

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| Company      Name                                                                                                                                                                   | Effective      Voting Interest | Type      of Affiliate       | TV      Channels                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------|------------------------------------------------------------------------------------------|
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Bulgaria                                                                                                                                                                            |                           |                         |                                                                                     |
| Operating      Companies:                                                                                                                                                           |                           |                         |                                                                                     |
| LG      Consult EOOD                                                                                                                                                                | 80.0%                          | Consolidated      Subsidiary | N/A                                                                                      |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Ring      TV EAD (“Ring TV”)                                                                                                                                            | 80.0%                          | Consolidated      Subsidiary | RING      TV                                                                             |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| License      Company:                                                                                                                                                               |                           |                         |                                                                                     |
| TV2      EOOD                                                                                                                                                                       | 80.0%                          | Consolidated      Subsidiary | TV2                                                                                      |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Croatia                                                                                                                                                                             |                           |                         |                                                                                     |
| License Company:                                                                                                                                                                    |                           |                         |                                                                                     |
| Nova      TV d.d. (“Nova TV (Croatia)”)                                                                                                                                 | 100.0%                         | Consolidated      Subsidiary | NOVA      TV (Croatia)                                                                   |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Czech      Republic                                                                                                                                                                 |                           |                         |                                                                                     |
| License      Company:                                                                                                                                                               |                           |                         |                                                                                     |
| CET      21 spol s.r.o. (“CET 21”)                                                                                                                                      | 100.0%                         | Consolidated      Subsidiary | TV      NOVA (Czech      Republic) NOVA      CINEMA and NOVA      SPORT                  |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Romania                                                                                                                                                                             |                           |                         |                                                                                     |
| Operating Companies:                                                                                                                                                                |                           |                         |                                                                                     |
| Media      Pro International S.A. (“MPI”)                                                                                                                               | 95.0%                          | Consolidated      Subsidiary | N/A                                                                                      |
| Media      Vision S.R.L. (“Media Vision”)                                                                                                                               | 95.0%                          | Consolidated      Subsidiary | N/A                                                                                      |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| License Company:                                                                                                                                                                    |                           |                         |                                                                                     |
| Pro      TV S.A. (“Pro TV”)                                                                                                                                             | 95.0%                          | Consolidated      Subsidiary | PRO      TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL, MTV ROMANIA and      SPORT.RO |
| Slovak      Republic                                                                                                                                                                |                           |                         |                                                                                     |
| License Company:                                                                                                                                                                    |                           |                         |                                                                                     |
| MARKIZA-SLOVAKIA,      spol. s.r.o. (“Markiza”)                                                                                                                         | 100.0%                         | Consolidated      Subsidiary | TV      MARKIZA                                                                          |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Slovenia                                                                                                                                                                            |                           |                         |                                                                                     |
| Operating Company:                                                                                                                                                                  |                           |                         |                                                                                     |
| Produkcija      Plus d.o.o. (“Pro Plus”)                                                                                                                                | 100.0%                         | Consolidated      Subsidiary | N/A                                                                                      |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| License Companies:                                                                                                                                                                  |                           |                         |                                                                                     |
| POP      TV d.o.o. (“Pop TV”)                                                                                                                                           | 100.0%                         | Consolidated      Subsidiary | POP      TV                                                                              |
| Kanal      A d.o.o. (“Kanal A”)                                                                                                                                         | 100.0%                         | Consolidated      Subsidiary | KANAL      A                                                                             |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| Ukraine                                                                                                                                                                             |                           |                         |                                                                                     |
| Operating Companies:                                                                                                                                                                |                           |                         |                                                                                     |
| Innova      Film GmbH (“Innova”)                                                                                                                                        | 100.0%                         | Consolidated      Subsidiary | N/A                                                                                      |
| International      Media Services Ltd. (“IMS”)                                                                                                                          | 100.0%                         | Consolidated      Subsidiary | N/A                                                                                      |
| 1+1      Production                                                                                                                                                                 | 100.0%                         | Consolidated      Subsidiary | N/A                                                                                      |
| TV      Media Planet Ltd. (“TV Media Planet”)                                                                                                                           | 100.0%                         | Consolidated      Subsidiary | N/A                                                                                      |
|                                                                                                                                                                                |                           |                         |                                                                                     |
| License Company:                                                                                                                                                                    |                           |                         |                                                                                     |
| Studio      1+1 LLC (“Studio 1+1”)                                                                                                                                      | 100.0%                         | Consolidated      Subsidiary | STUDIO      1+1                                                                          |
| Gravis      LLC (“Gravis”)                                                                                                                                              | 60.4%                          | Consolidated      Subsidiary | CITI      (1)                                                                            |
| Gravis      – Kino LLC (“Gravis-Kino”) (2)                                                                                                                        | 60.4%                          | Consolidated      Subsidiary | KINO                                                                                     |
| Tor      LLC (“Tor”) (3)                                                                                                                                                | 60.4%                          | Consolidated      Subsidiary | KINO                                                                                     |
| Zhysa      LLC (“Zhysa”) (3)                                                                                                                                            | 60.4%                          | Consolidated      Subsidiary | KINO                                                                                     |
| (1)      We owned CITI until February 10, 2009. See Part II, Item 8, Note 23      “Subsequent Events”. We now hold no ownership inGravis.                               |
| (2)      On January 26, 2009  we acquired 100% ownership of      Gravis-Kino.                                                                                             |
| (3)      Zhysa and Tor hold local terrestrial licenses which allow them to      re-broadcast the KINO signal. On January 14, 2009, we acquired 100%      ownership of Zhysa andTor. |

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| Country              | TV      Channels                  | Launch      Date        | Technical      Reach (1) | 2008  All      Day Audience Share (2) | Market      Rank (2) |
|----------------------|-----------------------------------|-------------------------|--------------------------|-------------------------------------------------|----------------------|
| Bulgaria             | TV2                               | November      2007 (3)  | 80.3%                    | 2.0%                                            | 8                    |
|                 | RING      TV                      | September      1998 (3) | 58.6%                    | 0.3%                                            | 22                   |
| Croatia              | NOVA      TV(Croatia)             | August      2000 (4)    | 89.0%                    | 22.5%                                           | 3                    |
| Czech Republic  | TV      NOVA(Czech Republic) | February      1994 (5)  | 97.3%                    | 41.5%                                           | 1                    |
|                 | NOVA SPORT                   | April      2002 (6)     | 20.7%                    | n/a                                             | n/a                  |
|                 | NOVA      CINEMA(7)               | December      2007      | 37.9%                    | 0.5%                                            | 7                    |
| Romania              | PRO      TV                       | December      1995      | 98.6%                    | 16.5%                                           | 1                    |
|                 | ACASA                             | February      1998      | 90.1%                    | 8.1%                                            | 3                    |
|                 | PRO      CINEMA                   | April      2004         | 75.0%                    | 2.0%                                            | 10                   |
|                 | SPORT.RO                          | July      2003 (8)      | 63.8%                    | 1.6%                                            | 13                   |
|                 | MTV      ROMANIA                  | June      2002 (9)      | 56.3%                    | 0.6%                                            | 30                   |
| Slovak Republic | TV      MARKIZA                   | August      1996        | 99.4%                    | 35.1%                                           | 1                    |
| Slovenia             | POP      TV                       | December      1995      | 95.7%                    | 25.4%                                           | 1                    |
|                 | KANAL      A                      | October      1991 (10)  | 93.7%                    | 15.0%                                           | 3                    |
| Ukraine              | STUDIO      1+1                   | January      1997       | 98.5%                    | 12.0%                                           | 2                    |
|                 | KINO                              | August      1993 (11)   | 52.5%                    | 0.6%                                            | 19                   |
|                 | CITI                              | March      1994 (11)    | 8.2%                     | 0.1%                                            | 18                   |

| (1) | Source:      Bulgaria: TNS; Croatia: AGB Nielsen Media Research; Czech Republic:      ATO - Mediaresearch; Romania: GFK; Slovak Republic:  PMT /      TNS SK; Slovenia: AGB Nielsen Media Research; Ukraine: GFK. “Technical      Reach” is a measurement of the percentage of a country’s population that      is able to receive the signals of the indicated  channels. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Source:      Bulgaria: TNS; Croatia: AGB Nielsen Media Research; Czech      Republic:  ATO – Mediaresearch; Romania: GFK; Slovak Republic:      PMT / TNS; Slovenia: AGB Nielsen Media Research; Ukraine: GFK. Sales      target group all day audience share and market  rank. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | We      acquired TV2 and RING TV in August2008. |
|-----|-------------------------------------------------|

| (4) | We      acquired NOVA TV (Croatia) in July2004. |
|-----|-------------------------------------------------|

| (5) | We      acquired TV NOVA (Czech Republic) in May2005. |
|-----|-------------------------------------------------------|

| (6) | We      acquired NOVA SPORT in September2005. |
|-----|-----------------------------------------------|

| (7) | Technical      reach for NOVA CINEMA includes the entrance of DBV-T (December 15, to      December 31, 2008) |
|-----|--------------------------------------------------------------------------------------------------------------|

| (8) | We      acquired SPORT.RO in March 2007. |
|-----|------------------------------------------|

| (9) | We      acquired the license to broadcast MTV ROMANIA in December      2007. |
|-----|------------------------------------------------------------------------------|

| (10) | We      acquired KANAL A in October 2000. |
|------|-------------------------------------------|

| (11) | We      acquired KINO and CITI in January 2006 and relaunched them in July 2006      and December 2006, respectively. We disposed of the CITI channel in      February 2009. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Country        | Population(in      millions)(1) | Technical      reach (in millions)(2) | Television      Households Reached(in      millions)(3) | Television      Households   Reached (%)(3) | CablePenetration(3) |
|----------------------|---------------------------------|---------------------------------------|---------------------------------------------------------|------------------------------------------------------------|---------------------|
| Bulgaria             | 7.6                             | 5.9                                   | 2.3                                                     | 99%                                                        | 60%                 |
| Croatia              | 4.6                             | 3.7                                   | 1.3                                                     | 97%                                                        | 16%                 |
| Czech Republic  | 10.2                            | 9.9                                   | 3.8                                                     | 98%                                                        | 23%                 |
| Romania              | 21.3                            | 19.9                                  | 7.0                                                     | 97%                                                        | 67%                 |
| Slovak Republic | 5.4                             | 5.0                                   | 1.6                                                     | 98%                                                        | 43%                 |
| Slovenia             | 2.0                             | 1.9                                   | 0.6                                                     | 98%                                                        | 65%                 |
| Ukraine              | 45.9                            | 41.3                                  | 16.4                                                    | 97%                                                        | 32%                 |
| Total                | 97.0                            | 87.6                                  | 33.0                                                    |                                                       |                |
|                 |                            |                                  |                                                    |                                                       |                |

| (1) | Source:      Global Insight. |
|-----|------------------------------|

| (2) | Source:      Internal estimates supplied by each country’s operations. Each of our      operations has estimated its own technical reach based on the location,      power and frequency of each of its transmitters and the local population      density and geography around the transmitter. The technical reach is      separate from the independent third party measurement that determines      audience shares. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Source:      Bulgaria: TNS, Croatia: AGB Nielsen Media Research,; Czech      Republic: ATO Mediaresearch (Continual Study); Romania: GFK– Establishment      Survey; Slovak Republic: TNS; Slovenia: AGB Nielsen Media Research      –Establishment Survey 2008; Ukraine:GFK. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Bulgaria:             | Council      for Electronic Media                                                           |
|-----------------------|--------------------------------------------------------------------------------------------------|
| Croatia:              | Electronic      Media Council                                                               |
| Czech Republic:  | The      Council for Radio and Television Broadcasting                                      |
| Romania:              | National      Audio-Visual Council                                                          |
| Slovak Republic: | Council      of the Slovak Republic for Broadcasting and Television      Transmission  |
| Slovenia:             | Post      and Electronic Communications Agency of the Republic of      Slovenia             |
| Ukraine:              | National      Council for Television and RadioBroadcasting                                       |

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| Bulgaria        | The      license of TV2 expires in February 2010.                                                                                                                                                                                                                                                                                                           |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Croatia              | The      license of NOVA TV (Croatia) expires in March 2010.                                                                                                                                                                                                                                                                                                |
| Czech Republic  | The      license of TV NOVA (Czech Republic) expires in January 2017. The NOVA      SPORT license expires in September 2020. The satellite license for      NOVA CINEMA expires in November 2019.                                                                                                                                                 |
| Romania              | Licenses      expire on dates ranging from April 2009 to May 2017.                                                                                                                                                                                                                                                                                          |
| Slovak Republic | The      license of TV MARKIZA expires in September 2019.                                                                                                                                                                                                                                                                                              |
| Slovenia             | The      licenses of POP TV and KANAL A expire in August 2012.                                                                                                                                                                                                                                                                                              |
| Ukraine              | The      15-hour prime time and off prime time license of STUDIO 1+1 expires in      December 2016. The license to broadcast for the remaining nine hours in      off prime time expires in July 2014. The satellite license expires in      April 2018. Licenses used for the KINO and CITI channels expire on dates      ranging from March 2010 to April2016. |

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|              | 2004   | 2005   | 2006   | 2007   | 2008   |
|-------------------|--------|--------|--------|--------|--------|
| TV2               |   |   |   |   |   |
| All      day      | -      | -      | -      | 0.1%   | 2.0%   |
| Prime      time   | -      | -      | -      | 0.1%   | 1.8%   |
| RING      TV      |   |   |   |   |   |
| All      day      | 1.0%   | 0.6%   | 0.5%   | 0.3%   | 0.3%   |
| Prime      time   | 0.8%   | 0.5%   | 0.5%   | 0.3%   | 0.3%   |
| Source:      TNS. |

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| Main      Television Channels | Ownership              | Year      of first transmission | Signal      distribution            | All      day audience share (2008) | Technical      reach |
|-------------------------------|------------------------|---------------------------------|-------------------------------------|------------------------------------|----------------------|
|                          |                   |                            |                                |                               |                 |
| bTV                           | News      Corp         | 2000                            | Cable      / Terrestial / Satellite | 36.5%                              | 99.9%                |
|                          |                   |                            |                                |                               |                 |
| NOVA      TV                  | MTG                    | 1994                            | Cable      / Terrestial / Satellite | 16.9%                              | 95.3%                |
|                          |                   |                            |                                |                               |                 |
| BNT                           | Public      television | 1959                            | Cable      / Terrestial / Satellite | 9.7%                               | 99.5%                |
|                          |                   |                            |                                |                               |                 |
| DIEMA      +                  | MTG                    | 1999                            | Cable      / Terrestial / Satellite | 3.6%                               | 67.3%                |
|                          |                   |                            |                                |                               |                 |
| TV2                           | CME                    | 2007                            | Cable      / Terrestial / Satellite | 2.0%                               | 80.3%                |
|                          |                   |                            |                                |                               |                 |
| RING      TV                  | CME                    | 1998                            | Cable      / Satellite              | 0.5%                               | 58.6%                |
| Others                        |                   |                            |                                | 30.8%                              |                 |
|                          |                   |                            |                                | 100%                               |                 |
| Source:      TNS.             |

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|                                    | 2004   | 2005   | 2006   | 2007   | 2008   |
|-----------------------------------------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |
| All      day                            | 15.6%  | 14.0%  | 15.7%  | 18.8%  | 22.5%  |
| Prime      time                         | 13.5%  | 14.5%  | 17.3%  | 19.7%  | 25.4%  |
|                                    |   |   |   |   |   |
| Source:      AGB Nielsen MediaResearch. |

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| Main      Television Channels      | Ownership              | Year      of first transmission | Signal distribution                        | All      day audience share (2008) | Technical reach |
|-----------------------------------------|------------------------|--------------------------------------|-------------------------------------------------|-----------------------------------------|----------------------|
| RTL                                     | Bertelsmann            | 2004                                 | Terrestrial      / satellite / cable       | 26.4%                                   | 96.9%                |
|                                    |                   |                                 |                                            |                                    |                 |
| HRT      1                              | Public      Television | 1956                                 | Terrestrial      / satellite / cable       | 24.3%                                   | 96.3%                |
|                                    |                   |                                 |                                            |                                    |                 |
| NOVA      TV (Croatia)                  | CME                    | 2000                                 | Terrestrial      /  satellite / cable | 22.5%                                   | 89.0%                |
|                                    |                   |                                 |                                            |                                    |                 |
| HRT      2                              | Public      Television | 1972                                 | Terrestrial      / satellite / cable            | 15.1%                                   | 96.1%                |
|                                    |                   |                                 |                                            |                                    |                 |
| Others                                  |                   |                                 |                                            | 11.7%                                   |                 |
|                                    |                   |                                 |                                            | 100.0%                                  |                 |
| Source:      AGB Nielsen MediaResearch. |

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|                                   | 2004   | 2005   | 2006   | 2007   | 2008   |
|----------------------------------------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |
| All      day                           | 42.6%  | 42.4%  | 43.6%  | 43.0%  | 41.5%  |
| Prime      time                        | 45.6%  | 43.6%  | 47.3%  | 46.8%  | 45.8%  |
|                                   |   |   |   |   |   |
| Source:      ATO –Mediaresearch. |

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| Main      Television Channels           | Ownership                            | Year      of first transmission | Signal      distribution                 | All      day audience share (2008) | Technical      reach |
|-----------------------------------------|--------------------------------------|---------------------------------|------------------------------------------|------------------------------------|----------------------|
|                                    |                                 |                            |                                     |                               |                 |
| TV      NOVA (Czech Republic)      | CME                                  | 1994                            | Terrestrial      / satellite and digital | 41.5%                              | 97.3%                |
|                                    |                                 |                            |                                     |                               |                 |
| CT      1                               | Public      Television               | 1953                            | Terrestrial      / satellite / digital   | 17.3%                              | 97.4%                |
|                                    |                                 |                            |                                     |                               |                 |
| TV      Prima                           | Modern      Times Group/Local owners | 1993                            | Terrestrial      / satellite / digital   | 17.0%                              | 94.5%                |
|                                    |                                 |                            |                                     |                               |                 |
| CT      2                               | Public      Television               | 1970                            | Terrestrial      / satellite / digital   | 6.8%                               | 95.8%                |
|                                    |                                 |                            |                                     |                               |                 |
| NOVA      CINEMA (1)                    | CME                                  | 2007                            | Cable      / satellite / digital         | 0.5%                               | 37.9%                |
|                                    |                                 |                            |                                     |                               |                 |
| NOVA      SPORT                         | CME                                  | 2002                            | Cable      / satellite                   | n/a                                | 20.7%                |
|                                    |                                 |                            |                                     |                               |                 |
| Others                                  |                                 |                            |                                     | 16.9%                              |                 |
|                                    |                                 |                            |                                     | 100.0%                             |                 |
|                                    |                                 |                            |                                     |                               |                 |
| Source      : ATO –Mediaresearch. |

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|                                                                                       | 2004   | 2005   | 2006   | 2007   | 2008   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                       |   |   |   |   |   |
| PRO      TV                                                                                |   |   |   |   |   |
| All      day                                                                               | 20.5%  | 20.9%  | 20.7%  | 18.3%  | 16.5%  |
| Prime      time                                                                            | 23.7%  | 22.8%  | 22.9%  | 21.5%  | 19.7%  |
| ACASA                                                                                      |   |   |   |   |   |
| All      day                                                                               | 9.7%   | 9.6%   | 8.5%   | 7.5%   | 8.1%   |
| Prime      time                                                                            | 10.3%  | 11.2%  | 9.0%   | 7.1%   | 9.4%   |
| SPORT.RO                                                                                   |   |   |   |   |   |
| All      day                                                                               | 1.2%   | 1.5%   | 1.5%   | 1.7%   | 1.6%   |
| Prime      time                                                                            | 1.0%   | 1.4%   | 1.3%   | 1.3%   | 1.2%   |
| PRO      CINEMA                                                                            |   |   |   |   |   |
| All      day                                                                               | 0.8%   | 1.5%   | 1.8%   | 2.2%   | 2.0%   |
| Prime      time                                                                            | 0.8%   | 1.3%   | 1.5%   | 1.9%   | 1.8%   |
| MTV      ROMANIA (1)                                                                       |   |   |   |   |   |
| All      day                                                                               | 1.0%   | 0.8%   | 0.8%   | 0.9%   | 0.6%   |
| Prime      time                                                                            | 0.5%   | 0.5%   | 0.5%   | 0.6%   | 0.5%   |
|                                                                                       |
| Source:      GFK , TNS/AGB International.(1)      We acquired MTV Romania in December2007. |

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| Main      Television Channels           | Ownership              | Year      of first transmission | Signal      distribution             | All      day audience share (2008) | Technical      reach |
|-----------------------------------------|------------------------|---------------------------------|--------------------------------------|------------------------------------|----------------------|
|                                    |                   |                            |                                 |                               |                 |
| PRO      TV                             | CME                    | 1995                            | Terrestrial      / satellite / cable | 16.5%                              | 98.6%                |
|                                    |                   |                            |                                 |                               |                 |
| Antena      1                           | Local      owner       | 1993                            | Terrestrial      / satellite / cable | 9.4%                               | 93.7%                |
|                                    |                   |                            |                                 |                               |                 |
| ACASA                                   | CME                    | 1998                            | Satellite      / cable               | 8.1%                               | 90.1%                |
|                                    |                   |                            |                                 |                               |                 |
| Prima      TV                           | SBS                    | 1994                            | Terrestrial      / satellite / cable | 5.3%                               | 91.6%                |
|                                    |                   |                            |                                 |                               |                 |
| TVR      1                              | Public      Television | 1956                            | Terrestrial      / satellite / cable | 4.0%                               | 99.2%                |
|                                    |                   |                            |                                 |                               |                 |
| PRO      CINEMA                         | CME                    | 2004                            | Satellite      / cable               | 2.0%                               | 75.0%                |
|                                    |                   |                            |                                 |                               |                 |
| TVR      2                              | Public      Television | 1968                            | Terrestrial      / satellite / cable | 1.6%                               | 95.8%                |
|                                    |                   |                            |                                 |                               |                 |
| SPORT.RO                                | CME                    | 2003                            | Satellite      / cable               | 1.6%                               | 63.8%                |
|                                    |                   |                            |                                 |                               |                 |
| MTV      ROMANIA                        | CME                    | 2002                            | Satellite      / cable               | 0.6%                               | 56.3%                |
|                                    |                   |                            |                                 |                               |                 |
| Others                                  |                   |                            |                                 | 50.9%                              |                 |
|                                    |                   |                            |                                 | 100.0%                             |                 |
|                                    |                   |                            |                                 |                               |                 |
| Source:      GFK, TNS/AGBInternational. |

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|            | 2004  | 2005  | 2006  | 2007  | 2008  |
|-----------------|-------|-------|-------|-------|-------|
| All      day    | 33.7% | 31.2% | 33.7% | 35.5% | 35.1% |
| Prime      time | 35.4% | 32.9% | 35.9% | 39.5% | 37.7% |

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| Main Television Channels | Ownership              | Year      of first transmission | Signal distribution             | All      day audience share (2008) | Technical reach |
|------------------------------------|------------------------|--------------------------------------|--------------------------------------|-----------------------------------------|----------------------|
| TV      MARKIZA                    | CME                    | 1996                                 | Terrestrial      / satellite / cable | 35.1%                                   | 99.4%                |
|                               |                   |                                 |                                 |                                    |                 |
| TV      JOJ                        | Local      owner       | 2002                                 | Terrestrial      / satellite / cable | 16.9%                                   | 88.8%                |
|                               |                   |                                 |                                 |                                    |                 |
| STV      1                         | Public      Television | 1956                                 | Terrestrial      / satellite / cable | 16.4%                                   | 99.9%                |
|                               |                   |                                 |                                 |                                    |                 |
| STV      2                         | Public      Television | 1969                                 | Terrestrial      / satellite / cable | 5.8%                                    | 99.4%                |
|                               |                   |                                 |                                 |                                    |                 |
| Others                             |                   |                                 |                                 | 25.8%                                   |                 |
|                               |                   |                                 |                                 | 100.0%                                  |                 |
|                               |                   |                                 |                                 |                                    |                 |
| Source:      CME.                  |

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|                                    | 2004   | 2005   | 2006   | 2007   | 2008   |
|-----------------------------------------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |
| POP      TV                             |   |   |   |   |   |
| All      day                            | 26.6%  | 27.2%  | 29.1%  | 26.1%  | 25.4%  |
| Prime      time                         | 32.6%  | 33.9%  | 36.0%  | 32.2%  | 31.9%  |
| KANAL      A                            |   |   |   |   |   |
| All      day                            | 10.4%  | 11.4%  | 12.0%  | 14.3%  | 15.0%  |
| Prime      time                         | 12.3%  | 13.5%  | 13.8%  | 15.3%  | 15.5%  |
|                                    |   |   |   |   |   |
| Source:      AGB Nielsen MediaResearch. |

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| Main      Television Channels           | Ownership               | Year      of first transmission | Signal      distribution             | All      day audience share (2008) | Technical      reach |
|-----------------------------------------|-------------------------|---------------------------------|--------------------------------------|------------------------------------|----------------------|
|                                    |                    |                            |                                 |                               |                 |
| POP      TV                             | CME                     | 1995                            | Terrestrial      / cable             | 25.4%                              | 95.7%                |
|                                    |                    |                            |                                 |                               |                 |
| SLO      1                              | Public      Television  | 1958                            | Terrestrial      / satellite / cable | 16.5%                              | 99.9%                |
|                                    |                    |                            |                                 |                               |                 |
| KANAL      A                            | CME                     | 1991                            | Terrestrial      / cable             | 15.0%                              | 93.7%                |
|                                    |                    |                            |                                 |                               |                 |
| SLO      2                              | Public      Television  | 1967                            | Terrestrial      / satellite / cable | 7.7%                               | 99.2%                |
|                                    |                    |                            |                                 |                               |                 |
| TV3                                     | Modern      Times Group | 1995                            | Terrestrial      / cable             | 6.8%                               | 78.2%                |
|                                    |                    |                            |                                 |                               |                 |
| Others                                  |                    |                            |                                 | 28.6%                              |                 |
|                                    |                    |                            |                                 | 100.0%                             |                 |
|                                    |                    |                            |                                 |                               |                 |
| Source:      AGB Nielsen MediaResearch. |

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|            | 2004  | 2005  | 2006  | 2007  | 2008  |
|-----------------|-------|-------|-------|-------|-------|
| All      day    | 21.9% | 20.2% | 18.4% | 16.0% | 12.0% |
| Prime      time | 27.5% | 22.2% | 23.0% | 18.5% | 13.2% |

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| Main Television Channels | Ownership                                      | Year      of first transmission | Signal distribution                 | Audience share      (2008) | Technical reach |
|------------------------------------|------------------------------------------------|--------------------------------------|------------------------------------------|---------------------------------|----------------------|
| Inter                              | Local      owners                              | 1996                                 | Terrestrial      /satellite      / cable | 21.0%                           | 99.0%                |
|                               |                                           |                                 |                                     |                            |                 |
| STUDIO      1+1                    | CME                                            | 1997                                 | Terrestrial      /satellite      / cable | 12.0%                           | 98.5%                |
|                               |                                           |                                 |                                     |                            |                 |
| STB                                | Local      owner (same as Novy Kanal and ICTV) | 1997                                 | Terrestrial                              | 8.0%                            | 96.5%                |
|                               |                                           |                                 |                                     |                            |                 |
| ICTV                               | Local      owner (same as Novy Kanal and STB)  | 1992                                 | Terrestrial                              | 7.8%                            | 96.1%                |
|                               |                                           |                                 |                                     |                            |                 |
| Novy      Kanal                    | Local      owner (same as ICTV and STB)        | 1998                                 | Terrestrial                              | 7.2%                            | 97.2%                |
|                               |                                           |                                 |                                     |                            |                 |
| UT-1                               | PublicTelevision                               | 1965                                 | Terrestrial      /cable                  | 1.9%                            | 97.3%                |
|                               |                                           |                                 |                                     |                            |                 |
| Others                             |                                           |                                 |                                     | 42.1%                           |                 |
|                               |                                           |                                 |                                     | 100.0%                          |                 |
|                               |                                           |                                 |                                     |                            |                 |

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| Item      1A. | Risk      Factors |
|---------------|-------------------|

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| · | additional      demands placed on our senior management, who are also responsible for      managing our existing operations; |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| · | increased      overall operating complexity of our business, requiring greater personnel      and other resources; |
|--------|--------------------------------------------------------------------------------------------------------------------|

| · | difficulties      of expanding beyond our core expertise in the event that we acquire      ancillary businesses; |
|--------|------------------------------------------------------------------------------------------------------------------|

| · | significant      initial cash expenditures to acquire and integrate new businesses;      and |
|--------|----------------------------------------------------------------------------------------------|

| · | in      the event that debt is incurred to finance acquisitions, additional debt      service costs related thereto as well as limitations that may arise under      our Senior Notes and the EBRD Loan. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ESO

OPER

| Location                                           |   | Property                        |   | Use                                                         |
|----------------------------------------------------|--------|---------------------------------|--------|-------------------------------------------------------------|
|                                               |   |                            |   |                                                        |
| Hamilton,      Bermuda                             |   | Leased      office              |   | Registered      Office, corporate                           |
| Amsterdam,      Netherlands                        |   | Leased      office              |   | Corporate      Office, corporate                            |
| London,      United Kingdom                        |   | Leased      office              |   | Administrative Center,      corporate                  |
| Sofia,      Bulgaria                               |   | Leased      buildings           |   | Office      and studio space, TV2 and RING TV               |
| Zagreb,      Croatia                               |   | Owned      and leased buildings |   | Office      and studio space, NOVA TV (Croatia)             |
| Prague,      Czech Republic                        |   | Owned      and leased buildings |   | Office      and studio space, TV NOVA (Czech Republic) |
| Bucharest      and other key cities within Romania |   | Owned      and leased buildings |   | Office      and studio space, PRO TV                        |
| Bratislava,      Slovak Republic              |   | Owned      buildings            |   | Office      and studio space, TV MARKIZA                    |
| Ljubljana,      Slovenia                           |   | Owned      and leased buildings |   | Office      and studio space, POP TV and KANAL A            |
| Kiev      and other key cities within Ukraine      |   | Leased      buildings           |   | Office      and studio space, STUDIO 1+1 and KINO           |
| Zug,      Switzerland                              |   | Leased      office              |   | Office      space, IMS                                      |

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GA

MISS

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RKE

| Price      Period   | High      (US$ / Share) | Low      (US$ / Share) |
|---------------------|-------------------------|------------------------|
|                |                    |                   |
| 2008                |                    |                   |
| Fourth      Quarter | 66.47                   | 9.07                   |
| Third      Quarter  | 89.42                   | 61.99                  |
| Second      Quarter | 106.99                  | 86.34                  |
| First      Quarter  | 114.17                  | 78.50                  |
|                |                    |                   |
| 2007                |                    |                   |
| Fourth      Quarter | 123.49                  | 93.36                  |
| Third      Quarter  | 100.85                  | 76.91                  |
| Second      Quarter | 100.74                  | 86.85                  |
| First      Quarter  | 88.92                   | 70.95                  |
|                |                    |                   |

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| Central      European Media Enterprises Ltd. |   | $ | 55.81 |   |
|----------------------------------------------|--------|---|-------|--------|
| NASDAQ      Composite Index                  |   | $ | 79.39 |   |
| Dow      Jones World Broadcasting Index (1)  |   | $ | 72.49 |   |

LECT

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|                                                                                       |   | For      the Years Ended December 31,         |      |
|--------------------------------------------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                                                       |   | 2008                                          |      |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                                                       |   | (US$      000’s, except per share data) |      |
| CONSOLIDATED      STATEMENT OF OPERATIONS DATA:                                            |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      revenues                                                                          |   | $                                             | 1,019,934 |   |   | $ | 838,856 |   |   | $ | 602,646 |   |   | $ | 400,978 |   |   | $ | 182,339 |   |
| Operating      (loss) / income                                                             |   |                                          | (127,797  | ) |   |   | 210,456 |   |   |   | 142,971 |   |   |   | 52,196 |   |   |   | 18,671 |   |
| Net      (loss) / income from continuing operations                                        |   |                                          | (251,759  | ) |   |   | 93,048 |   |   |   | 27,641 |   |   |   | 42,835 |   |   |   | 15,938 |   |
| Net      (loss) / income on discontinued operations                                        |   |                                          | (3,785    | ) |   |   | (4,480 | ) |   |   | (7,217 | ) |   |   | (513 | ) |   |   | 2,524 |   |
| Net      income / (loss)                                                                   |   | $                                             | (255,544  | ) |   | $ | 88,568 |   |   | $ | 20,424 |   |   | $ | 42,322 |   |   | $ | 18,462 |   |
|                                                                                       |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PER      SHARE DATA:                                                                       |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) / income per common share from:                                            |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations – basic                                                   |   | $                                             | (5.95     | ) |   | $ | 2.25 |   |   | $ | 0.69 |   |   | $ | 1.24 |   |   | $ | 0.57 |   |
| Continuing      operations – diluted                                                 |   |                                          | (5.95     | ) |   |   | 2.23 |   |   |   | 0.68 |   |   |   | 1.21 |   |   |   | 0.55 |   |
| Discontinued      operations – basic                                                 |   |                                          | (0.09     | ) |   |   | (0.11 | ) |   |   | (0.18 | ) |   |   | (0.01 | ) |   |   | 0.09 |   |
| Discontinued      operations – diluted                                               |   |                                          | (0.09     | ) |   |   | (0.11 | ) |   |   | (0.18 | ) |   |   | (0.01 | ) |   |   | 0.09 |   |
| Net      (loss) / income  – basic                                          |   |                                          | (6.04     | ) |   |   | 2.14 |   |   |   | 0.51 |   |   |   | 1.22 |   |   |   | 0.66 |   |
| Net      (loss) / income – diluted                                              |   | $                                             | (6.04     | ) |   | $ | 2.12 |   |   | $ | 0.50 |   |   | $ | 1.19 |   |   | $ | 0.63 |   |
| Weighted      average common shares used in computing per share amounts      (000’s) |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                      |   |                                          | 42,328    |   |   |   | 41,384 |   |   |   | 40,027 |   |   |   | 34,664 |   |   |   | 27,871 |   |
| Diluted                                                                                    |   |                                          | 42,328    |   |   |   | 41,833 |   |   |   | 40,600 |   |   |   | 35,430 |   |   |   | 29,100 |   |
|                                                                                       |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED      BALANCE SHEET DATA:                                                      |   |                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                                       |   | $                                             | 107,433   |   |   | $ | 142,812 |   |   | $ | 145,902 |   |   | $ | 71,658 |   |   | $ | 152,568 |   |
| Other      current assets                                                                  |   |                                          | 387,962   |   |   |   | 392,280 |   |   |   | 271,763 |   |   |   | 215,268 |   |   |   | 112,481 |   |
| Non-current      assets                                                                    |   |                                          | 1,913,338 |   |   |   | 1,803,343 |   |   |   | 1,401,335 |   |   |   | 1,101,924 |   |   |   | 179,590 |   |
| Total      assets                                                                          |   | $                                             | 2,408,733 |   |   | $ | 2,338,435 |   |   | $ | 1,819,000 |   |   | $ | 1,388,850 |   |   | $ | 444,639 |   |
| Current      liabilities                                                                   |   |                                          | 228,673   |   |   |   | 234,470 |   |   |   | 184,461 |   |   |   | 206,961 |   |   |   | 109,745 |   |
| Non-current      liabilities                                                               |   |                                          | 1,175,694 |   |   |   | 681,003 |   |   |   | 572,584 |   |   |   | 488,099 |   |   |   | 18,965 |   |
| Minority      interests                                                                    |   |                                          | 3,187     |   |   |   | 23,155 |   |   |   | 26,189 |   |   |   | 13,237 |   |   |   | 4,861 |   |
| Shareholders’      equity                                                            |   |                                          | 1,001,179 |   |   |   | 1,399,807 |   |   |   | 1,035,766 |   |   |   | 680,553 |   |   |   | 311,068 |   |
| Total      liabilities and shareholders’ equity                                      |   | $                                             | 2,408,733 |   |   | $ | 2,338,435 |   |   | $ | 1,819,000 |   |   | $ | 1,388,850 |   |   | $ | 444,639 |   |
|                                                                                       |   |

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AGEM

| I. | Executive      Summary |
|----|------------------------|

| ll. | General      Market Information |
|-----|---------------------------------|

| Ill. | Analysis      of Segment Results |
|------|----------------------------------|

| IV. | Analysis      of the Results of ConsolidatedOperations |
|-----|--------------------------------------------------------|

| V. | Liquidity      and Capital Resources |
|----|--------------------------------------|

| Vl. | Critical      Accounting Policies and Estimates |
|-----|-------------------------------------------------|

| Vll. | Related      Party Matters |
|------|----------------------------|

|                                                         |   | For      the Years Ended December 31, (US$ 000's) |      |
|--------------------------------------------------------------|--------|---------------------------------------------------|-----------|
|                                                         |   | 2008                                              |      |   | 2007 |   |   | Movement |   |
|                                                         |   |                                              |      |   |   |   |   |   |   |
| Net      revenues                                            |   | $                                                 | 1,019,934 |   |   | $ | 838,856 |   |   | $ | 181,078 |   |
| Operating      (loss) /  income                    |   |                                              | (127,797  | ) |   |   | 210,456 |   |   |   | (338,253 | ) |
| Net      (loss) / Income                                     |   | $                                                 | (255,544  | ) |   | $ | 88,568 |   |   | $ | (344,112 | ) |
| Net      cash generated from continuing operating activities |   | $                                                 | 135,555   |   |   | $ | 106,695 |   |   | $ | 28,860 |   |

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|   | · | we      intend to reorganize our operating structure into three areas -      (broadcast) channel operations, content, and internet – to      leverage our content strengths to develop a significant new revenue source      over the medium term; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | as      this structure becomes established, we intend to continue our      transformation from a television broadcaster to a broad based media      company by capitalizing on our core strengths and expanding our revenue      base into five main sources: advertising, subscription, content      distribution, internet and managementservices. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      will continue developing our Bulgaria and Ukraine operations in a      controlled manner to secure consistent performance and a leading position      in those markets; and. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      will assess opportunities arising from current economic conditions to      launch or acquire additional channels and internet operations in our      region in order to expand our offerings, target niche audiences and      increase our advertising inventory when financially    prudent. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Country              | 2008      Rating | Details      of 2008 Rating                                                                                                                                                                                                                                                                                                                        | 2007      Rating | 2006      Rating | 2005      Rating |
|----------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------|------------------|
| Bulgaria             | A4               | A      somewhat shaky political and economic outlook and a relatively volatile      business environment can affect corporate payment      behavior.  Corporate default probability is still acceptable on      average.                                                                                                                 | -                | -                | -                |
|                 |             |                                                                                                                                                                                                                                                                                                                                               |             |             |             |
| Croatia              | A4               | A      somewhat shaky political and economic outlook and a relatively volatile      business environment can affect corporate payment      behavior.  Corporate default probability is still acceptable on      average.                                                                                                                 | A4               | A4               | A4               |
|                 |             |                                                                                                                                                                                                                                                                                                                                               |             |             |             |
| Czech Republic  | A2               | The      political and economic situation is good.  A basically stable      and efficient business environment nonetheless leaves room for      improvement.  Corporate default is low on    average.                                                                                                                          | A2               | A2               | A2               |
|                 |             |                                                                                                                                                                                                                                                                                                                                               |             |             |             |
| Romania              | A4               | A      somewhat shaky political and economic outlook and a relatively volatile      business environment can affect corporate payment      behavior.  Corporate probability is still acceptable on      average.                                                                                                                         | A4               | A4               | A4               |
|                 |             |                                                                                                                                                                                                                                                                                                                                               |             |             |             |
| Slovak Republic | A3               | Changes      in generally good but somewhat volatile political and economic environment      can affect corporate payment behavior.  A basically secure      business environment can nonetheless give rise to occasional difficulties      for companies.  Corporate default probability is quite      acceptable on average. | A3               | A3               | A3               |
|                 |             |                                                                                                                                                                                                                                                                                                                                               |             |             |             |
| Slovenia             | A1               | The      political and economic situation is very good.  A quality      business environment has a positive influence on corporate payment      behavior.  Corporate default probability is very low on      average.                                                                                                          | A1               | A1               | A2               |
|                 |             |                                                                                                                                                                                                                                                                                                                                               |             |             |             |
| Ukraine              | C                | A      very uncertain political and economic outlook and a business environment      with many troublesome weaknesses can have a significant impact on      corporate payment behavior.  Corporate default probability is      high.                                                                                                     | C                | C                | C                |

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| Country              |   | Population(in      millions) (1) |   |   | Per      Capita GDP 2008 (1) |   |   | Total      Advertising Spending per Capita 2008 (US$) (2) |   |   | Total      Advertising Spending as a % of GDP 2008(2) |   |   | TV      Advertising Spending per Capita (US$)2008(2) |   |   | TV      Advertising Spending as a % of Total Advertising Spending2008(2) |   |
|----------------------|--------|----------------------------------|--------|--------|------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|
| Bulgaria             |   |                             | 7.6    |   |                         | $      | 6,154  |                                                      |   | $      | 45.9                                                  |   |   |                                                 | 0.75   | %      |                                                                     | $      | 23.7 |   |   |   | 55 | % |
| Croatia              |   |                             | 4.6    |   |                         | $      | 13,491 |                                                      |   | $      | 73.0                                                  |   |   |                                                 | 0.54   | %      |                                                                     | $      | 35.5 |   |   |   | 49 | % |
| Czech Republic  |   |                             | 10.2   |   |                         | $      | 22,575 |                                                      |   | $      | 108.3                                                 |   |   |                                                 | 0.48   | %      |                                                                     | $      | 48.8 |   |   |   | 45 | % |
| Romania              |   |                             | 21.3   |   |                         | $      | 8,983  |                                                      |   | $      | 36.3                                                  |   |   |                                                 | 0.40   | %      |                                                                     | $      | 22.0 |   |   |   | 61 | % |
| Slovak      Republic |   |                             | 5.4    |   |                         | $      | 17,994 |                                                      |   | $      | 83.9                                                  |   |   |                                                 | 0.47   | %      |                                                                     | $      | 39.4 |   |   |   | 47 | % |
| Slovenia             |   |                             | 2.0    |   |                         | $      | 27,864 |                                                      |   | $      | 88.6                                                  |   |   |                                                 | 0.32   | %      |                                                                     | $      | 51.4 |   |   |   | 58 | % |
| Ukraine              |   |                             | 45.9   |   |                         | $      | 3,928  |                                                      |   | $      | 22.5                                                  |   |   |                                                 | 0.57   | %      |                                                                     | $      | 9.9 |   |   |   | 44 | % |

| (1) | Source:  Global      Insight. |
|-----|-----------------------------------------|

| (2) | Source:  Global      Insight and CME estimates. |
|-----|-----------------------------------------------------------|

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| Country |   | Population(in      millions) (1) |   |   | Per      Capita GDP 2008 (1) |   |   | Total      Advertising Spending per Capita 2008 (US$) (2) |   |   | Total      Advertising Spending as a % of GDP 2008(2) |   |   | TV      Advertising Spending per Capita (US$)2008(2) |   |   | TV      Advertising Spending as a % of Total Advertising Spending2008(2) |   |
|---------|--------|----------------------------------|--------|--------|------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|
| Greece  |   |                             | 11.2   |   |                         | $      | 31,712 |                                                      |   | $      | 370.2                                                 |   |   |                                                 | 1.17   | %      |                                                                     | $      | 111.6 |   |   |   | 30 | % |
| Hungary |   |                             | 10.0   |   |                         | $      | 14,013 |                                                      |   | $      | 96.6                                                  |   |   |                                                 | 0.69   | %      |                                                                     | $      | 39.6 |   |   |   | 41 | % |
| Italy   |   |                             | 58.6   |   |                         | $      | 39,386 |                                                      |   | $      | 257.2                                                 |   |   |                                                 | 0.65   | %      |                                                                     | $      | 128.9 |   |   |   | 50 | % |
| Poland  |   |                             | 38.0   |   |                         | $      | 11,350 |                                                      |   | $      | 75.7                                                  |   |   |                                                 | 0.67   | %      |                                                                     | $      | 35.4 |   |   |   | 47 | % |
| Russia  |   |                             | 141.8  |   |                         | $      | 12,188 |                                                      |   | $      | 75.1                                                  |   |   |                                                 | 0.62   | %      |                                                                     | $      | 39.5 |   |   |   | 53 | % |
| Turkey  |   |                             | 75.8   |   |                         | $      | 8,466  |                                                      |   | $      | 31.0                                                  |   |   |                                                 | 0.37   | %      |                                                                     | $      | 16.7 |   |   |   | 54 | % |
| UK      |   |                             | 61.0   |   |                         | $      | 34,283 |                                                      |   | $      | 324.6                                                 |   |   |                                                 | 0.95   | %      |                                                                     | $      | 84.6 |   |   |   | 26 | % |
| USA     |   |                             | 308.8  |   |                         | $      | 46,233 |                                                      |   | $      | 546.0                                                 |   |   |                                                 | 1.18   | %      |                                                                     | $      | 238.2 |   |   |   | 44 | % |

| (1)  | Source:  Global      Insight. |
|-----------|-----------------------------------------|

| (2)  | Source:  Global      Insight and CME estimates. |
|-----------|-----------------------------------------------------------|

| Country                      |   | 2004   |                   |   | 2005   |   |                   | 2006   |   |   | 2007                   |   |   | 2008   |                   |
|------------------------------|--------|--------|------------------------|--------|--------|--------|------------------------|--------|--------|--------|------------------------|--------|--------|--------|------------------------|
| Bulgaria      (1)            |   |   | -                      |   |   |   | –                |   |   |   | -                      |   |   |   | -                      |   |   | $ | 175      - $ 185 |   |
| Croatia      (1)             |   | $      | 110      – $ 120 |   |   | $      | 115      – $ 125 |   |   | $      | 120      – $ 130 |   |   | $      | 140      – $ 150 |   |   | $ | 155      - $ 165 |   |
| Czech Republic      (1) |   | $      | 260      – $ 270 |   |   | $      | 285      – $ 295 |   |   | $      | 310      – $ 320 |   |   | $      | 390      – $ 400 |   |   | $ | 490      - $ 500 |   |
| Romania                      |   | $      | 110      – $ 120 |   |   | $      | 165      – $ 175 |   |   | $      | 235      – $ 245 |   |   | $      | 375      – $ 385 |   |   | $ | 465      - $ 475 |   |
| Slovak Republic         |   | $      | 80      - $ 90         |   |   | $      | 90      – $ 100  |   |   | $      | 105      – $ 115 |   |   | $      | 165      – $ 170 |   |   | $ | 210      - $ 215 |   |
| Slovenia                     |   | $      | 55      – $ 65   |   |   | $      | 60      - $ 70         |   |   | $      | 70      - $ 80         |   |   | $      | 85      – $ 90   |   |   | $ | 100      - $ 105 |   |
| Ukraine      (2)             |   | $      | 140      - $ 150       |   |   | $      | 220      - $ 230       |   |   | $      | 310      - $ 320       |   |   | $      | 470      - $ 480       |   |   | $ | 450      - $ 460 |   |

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| Country                      |   | 2004   |         |   | 2005   |   |              | 2006   |   |   | 2007               |   |   | 2008   |              |
|------------------------------|--------|--------|--------------|--------|--------|--------|-------------------|--------|--------|--------|--------------------|--------|--------|--------|-------------------|
| Bulgaria      (1)            |   |   | -            |   |   |   | -                 |   |   |   | -                  |   |   |   | -                 |   |   |   | 6 –      8 | % |
| Croatia      (1)             |   |   | -            |   |   |   | (1      – 3 | )%     |   |   | 2 -      5         | %      |   |   | 4 –      7  | % |   |   | 0 | % |
| Czech Republic      (1) |   |   | -            |   |   |   | 3 –      5  | %      |   |   | 0 -      1         | %      |   |   | 8 –      12 | % |   |   | 7 –      9 | % |
| Romania                      |   |   | 20      - 30 | %      |   |   | 25      - 35      | %      |   |   | 30      – 40 | %      |   |   | 50      - 60      | % |   |   | 27      – 29 | % |
| Slovak Republic         |   |   | 14      - 16 | %      |   |   | 8 -      10       | %      |   |   | 5 -      7         | %      |   |   | 25      - 30      | % |   |   | 6 –      8 | % |
| Slovenia                     |   |   | 8 -      11  | %      |   |   | 9 -      11       | %      |   |   | 9 -      11        | %      |   |   | 8 -      10       | % |   |   | 7 –      9 | % |
| Ukraine      (2)             |   |   | 25      - 35 | %      |   |   | 45      - 55      | %      |   |   | 25      - 35       | %      |   |   | 25      - 35      | % |   |   | (3      - 5 | )% |

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|   | · | expenses      presented as corporate operating costs in our Consolidated Statement of      Operations; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | stock-based      compensation charges; |
|--------|--------|----------------------------------------|

|   | · | foreign      currency exchange gains and losses; |
|--------|--------|--------------------------------------------------|

|   | · | change      in the fair value of derivatives;and |
|--------|--------|--------------------------------------------------|

|   | · | certain      unusual or infrequent items (e.g., extraordinary gains and losses,      impairments of assets or investments, or gains on the sale of      unconsolidated affiliates). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                  |   | SEGMENT      FINANCIAL INFORMATION                |      |
|---------------------------------------|--------|---------------------------------------------------|-----------|
|                                  |   | For      the Years Ended December 31, (US$ 000's) |      |
|                                  |   | 2008                                              |      |   |   | (1 | ) |   | 2007 |   |   |   | (1 | ) |   | 2006 |   |   |   | (1 | ) |
| Segment      Net Revenues             |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bulgaria      (2)                     |   | $                                                 | 1,263     |   |   |   | 0 | % |   |   | - |   |   |   | - | % |   |   | - |   |   |   | - | % |
| Croatia      (NOVA TV)                |   |                                              | 54,651    |   |   |   | 5 | % |   | $ | 37,193 |   |   |   | 5 | % |   | $ | 22,310 |   |   |   | 4 | % |
| Czech      Republic (3)               |   |                                              | 376,546   |   |   |   | 37 | % |   |   | 279,237 |   |   |   | 33 | % |   |   | 208,387 |   |   |   | 34 | % |
| Romania      (4)                      |   |                                              | 274,627   |   |   |   | 27 | % |   |   | 215,402 |   |   |   | 26 | % |   |   | 148,616 |   |   |   | 25 | % |
| Slovak      Republic (TV MARKIZA) (5) |   |                                              | 132,692   |   |   |   | 13 | % |   |   | 110,539 |   |   |   | 13 | % |   |   | 73,420 |   |   |   | 12 | % |
| Slovenia      (POP TV and KANAL A)    |   |                                              | 80,697    |   |   |   | 8 | % |   |   | 69,647 |   |   |   | 8 | % |   |   | 54,534 |   |   |   | 9 | % |
| Ukraine      (STUDIO 1+1)             |   |                                              | 96,738    |   |   |   | 10 | % |   |   | 125,323 |   |   |   | 15 | % |   |   | 96,413 |   |   |   | 16 | % |
| Ukraine      (KINO, CITI) (6)         |   |                                              | 2,720     |   |   |   | 0 | % |   |   | 1,515 |   |   |   | 0 | % |   |   | 726 |   |   |   | 0 | % |
| Total      Segment Net Revenues       |   | $                                                 | 1,019,934 |   |   |   | 100 | % |   | $ | 838,856 |   |   |   | 100 | % |   | $ | 604,406 |   |   |   | 100 | % |
|                                  |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by:                  |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations             |   | $                                                 | 1,010,404 |   |   |   | 100 | % |   | $ | 835,232 |   |   |   | 100 | % |   | $ | 601,416 |   |   |   | 100 | % |
| Non-broadcast      operations         |   |                                              | 9,530     |   |   |   | 0 | % |   |   | 3,624 |   |   |   | 0 | % |   |   | 2,990 |   |   |   | 0 | % |
| Total      Segment Net Revenues       |   | $                                                 | 1,019,934 |   |   |   | 100 | % |   | $ | 838,856 |   |   |   | 100 | % |   | $ | 604,406 |   |   |   | 100 | % |
|                                  |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA                   |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bulgaria                              |   | $                                                 | (10,185   | ) |   |   | (3 | )% |   |   | - |   |   |   | - | % |   |   | - |   |   |   | - | % |
| Croatia      (NOVA TV)                |   |                                              | (5,415    | ) |   |   | (2 | )% |   | $ | (13,882 | ) |   |   | (4 | )% |   | $ | (14,413 | ) |   |   | (7 | )% |
| Czech      Republic                   |   |                                              | 208,655   |   |   |   | 60 | % |   |   | 156,496 |   |   |   | 49 | % |   |   | 100,488 |   |   |   | 46 | % |
| Romania                               |   |                                              | 111,783   |   |   |   | 33 | % |   |   | 93,075 |   |   |   | 29 | % |   |   | 65,860 |   |   |   | 30 | % |
| Slovak      Republic (TV MARKIZA)     |   |                                              | 50,228    |   |   |   | 15 | % |   |   | 41,532 |   |   |   | 13 | % |   |   | 20,805 |   |   |   | 10 | % |
| Slovenia      (POP TV and KANAL A)    |   |                                              | 25,413    |   |   |   | 7 | % |   |   | 22,767 |   |   |   | 7 | % |   |   | 19,842 |   |   |   | 9 | % |
| Ukraine      (STUDIO 1+1)             |   |                                              | (32,944   | ) |   |   | (9 | )% |   |   | 27,000 |   |   |   | 8 | % |   |   | 29,973 |   |   |   | 14 | % |
| Ukraine      (KINO, CITI)             |   |                                              | (1,855    | ) |   |   | (1 | )% |   |   | (3,536 | ) |   |   | (2 | )% |   |   | (1,795 | ) |   |   | (2 | )% |
| Total      Segment EBITDA             |   | $                                                 | 345,680   |   |   |   | 100 | % |   | $ | 323,452 |   |   |   | 100 | % |   | $ | 220,760 |   |   |   | 100 | % |
|                                  |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by:                  |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations             |   | $                                                 | 354,387   |   |   |   | 103 | % |   | $ | 327,330 |   |   |   | 101 | % |   | $ | 221,046 |   |   |   | 100 | % |
| Non-broadcast      operations         |   |                                              | (8,707    | ) |   |   | (3 | )% |   |   | (3,878 | ) |   |   | (1 | )% |   |   | (286 | ) |   |   | 0 | % |
| Total      Segment EBITDA             |   | $                                                 | 345,680   |   |   |   | 100 | % |   | $ | 323,452 |   |   |   | 100 | % |   | $ | 220,760 |   |   |   | 100 | % |
|                                  |   |                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin (7)        |   |                                              | 34        | % |   |   |   |   |   |   | 39 | % |   |   |   |   |   |   | 37 | % |   |   |   |   |

| (1) | Percentage      of Total Segment Net Revenues / Total Segment  EBITDA. |
|-----|------------------------------------------------------------------------|

| (2) | We      acquired our Bulgaria operations (TV2, RING TV) on August 1,      2008. |
|-----|---------------------------------------------------------------------------------|

| (3) | Our      Czech Republic operations comprise TV NOVA, NOVA SPORT and NOVA      CINEMA, which was launched in December2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (4) | Romanian      channels are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL, SPORT.RO and      MTV ROMANIA for the years ended December 31, 2008 and 2007 and PRO TV, PRO      CINEMA, ACASA  and PRO TV INTERNATIONAL for the year ended      December 31, 2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Our      Slovak Republic operations were accounted for as an equity affiliate      until January 23, 2006. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (6) | We      acquired our Ukraine (KINO, CITI) operations on January 11, 2006 and      disposed of the CITI channel in February2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (7) | We      define Segment EBITDA margin as the ratio of Segment EBITDA to Segment Net      Revenues. |
|-----|---------------------------------------------------------------------------------------------------|

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|                           |   | For      the five months from acquisition to December 31, 2008 |   |
|--------------------------------|--------|---------------------------------------------------------------------|--------|
| All      day audience share    |   |                                                                | 2.0    | % |
| All      day ratings           |   |                                                                | 0.2    | % |
| Prime      time audience share |   |                                                                | 1.7    | % |
| Prime      time ratings        |   |                                                                | 0.5    | % |

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Table of Contents

| BULGARIA      SEGMENT FINANICIAL INFORMATION |   |
|----------------------------------------------|--------|
|                                         |   |   |   |   | For      the period from acquisition to December 31, 2008 (US$      000’s) |   |
| Spot      revenues                           |   |   |   |   |   | $ | 666 |   |
| Non-spot      revenues                       |   |   |   |   |   |   | 597 |   |
| Segment      Net Revenues                    |   |   |   |   |   | $ | 1,263 |   |
|                                         |   |   |   |   |   |   |   |   |
| Represented      by:                         |   |   |   |   |   |   |   |   |
| Broadcast      operations                    |   |   |   |   |   | $ | 1,261 |   |
| Non-broadcast      operations                |   |   |   |   |   |   | 2 |   |
| Segment      Net Revenues                    |   |   |   |   |   | $ | 1,263 |   |
|                                         |   |   |   |   |   |   |   |   |
| Segment      EBITDA                          |   |   |   |   |   | $ | (10,185 | ) |
|                                         |   |   |   |   |   |   |   |   |
| Represented      by:                         |   |   |   |   |   |   |   |   |
| Broadcast      operations                    |   |   |   |   |   | $ | (10,182 | ) |
| Non-broadcast      operations                |   |   |   |   |   |   | (3 | ) |
| Segment      EBITDA                          |   |   |   |   |   | $ | (10,185 | ) |
|                                         |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin                   |   |   |   |   |   |   | (806 | )% |

| · | Segment Net Revenues for      the five months from acquisition to December 31, 2008 were US$ 1.3      million. Spot revenues were US$ 0.7 million. Non-spot revenues were US$      0.6 million, primarily from cablerevenues. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA losses      for the period from acquisition to December 31, 2008 were US$ 10.2      million. We incurred programming costs of US$ 6.5 million, which included      a writedown of programming of US$ 0.5 million, other operating costs of      US$ 2.3 million and selling, general and administrative costs of US$ 2.7      million. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | For      the Years Ended December 31, |   |
|--------------------------------|--------|---------------------------------------|--------|
|                           |   | 2008                                  |   |   | 2007 |   |   | Movement |   |
| All      day audience share    |   |                                  | 22.5   | % |   |   | 18.8 | % |   |   | 3.7 | % |
| All      day ratings           |   |                                  | 3.4    | % |   |   | 3.0 | % |   |   | 0.4 | % |
| Prime      time audience share |   |                                  | 25.4   | % |   |   | 19.7 | % |   |   | 5.7 | % |
| Prime      time ratings        |   |                                  | 8.8    | % |   |   | 7.2 | % |   |   | 1.6 | % |

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|                          |   |                                                    |   |
|-------------------------------|--------|---------------------------------------------------------|--------|
|                          |   | For      the Years Ended December 31, (US$ 000’s) |   |
|                          |   |                                                    |   |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |   |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 45,946 |   |   | $ | 29,675 |   |   |   | 54.8 | % |   |   | 44.4 | % |   | $ | 29,675 |   |   | $ | 16,442 |   |   |   | 80.5 | % |   |   | 65.1 | % |
| Non-spot      revenues        |   |                                                    | 8,705  |   |   |   | 7,518 |   |   |   | 15.8 | % |   |   | 4.9 | % |   |   | 7,518 |   |   |   | 5,868 |   |   |   | 28.1 | % |   |   | 14.9 | % |
| Segment      Net Revenues     |   | $                                                       | 54,651 |   |   | $ | 37,193 |   |   |   | 46.9 | % |   |   | 36.2 | % |   | $ | 37,193 |   |   | $ | 22,310 |   |   |   | 66.7 | % |   |   | 51.7 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 54,083 |   |   | $ | 36,901 |   |   |   | 46.6 | % |   |   | 35.8 | % |   | $ | 36,901 |   |   | $ | 22,298 |   |   |   | 65.5 | % |   |   | 50.6 | % |
| Non-broadcast      operations |   |                                                    | 568    |   |   |   | 292 |   |   |   | 94.5 | % |   |   | 94.3 | % |   |   | 292 |   |   |   | 12 |   |   | nm%      (3) |   |   | nm%      (3) |   |
| Segment      Net Revenues     |   | $                                                       | 54,651 |   |   | $ | 37,193 |   |   |   | 46.9 | % |   |   | 36.2 | % |   | $ | 37,193 |   |   | $ | 22,310 |   |   |   | 66.7 | % |   |   | 51.7 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | (5,415 | ) |   | $ | (13,882 | ) |   |   | (61.0 | )% |   |   | (64.1 | )% |   | $ | (13,882 | ) |   | $ | (14,413 | ) |   |   | 3.7 | % |   |   | 10.7 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | (3,503 | ) |   | $ | (13,814 | ) |   |   | 74.6 | % |   |   | 76.7 | % |   | $ | (13,814 | ) |   | $ | (14,302 | ) |   |   | 3.4 | % |   |   | 10.4 | % |
| Non-broadcast      operations |   |                                                    | (1,912 | ) |   |   | (68 | ) |   | nm%      (3) |   |   | nm%      (3) |   |   |   | (68 | ) |   |   | (111 | ) |   |   | 38.7 | % |   |   | 47.3 | % |
| Segment      EBITDA           |   | $                                                       | (5,415 | ) |   | $ | (13,882 | ) |   |   | (61.0 | )% |   |   | (64.1 | )% |   | $ | (13,882 | ) |   | $ | (14,413 | ) |   |   | 3.7 | % |   |   | 10.7 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | (10    | )% |   |   | (37 | )% |   |   | 27 | % |   |   | 28 | % |   |   | (37 | )% |   |   | (65 | )% |   |   | 28 | % |   |   | 26 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| · | Segment Net      Revenues for the year ended December 31,      2008 increased by 47%, compared to year ended December 31,      2007.  In constant currency, Segment Net Revenues increased by      36%.  Spot revenues for 2008 increased by 55%, or 44% in      constant currency, compared to 2007 due to the continuing significantly      higher volume of GRPs sold at increased prices, although in November and      December we sold a lower proportion of the GRPs that we generated compared      to the prior year. Non-spot revenues increased by 16% in 2008 compared to      2007 and there was an increase of 5% in constant currency primarily as a      result of lower telephone-based services revenues (“Call      TV”).   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA losses for the      year ended December 31, 2008 decreased by 61% compared to year ended      December 31, 2007.  In constant currency, Segment EBITDA losses      decreased by 64%. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | For      Years Ended December 31, |   |
|--------------------------------|--------|-----------------------------------|--------|
|                           |   | 2008                              |   |   | 2007 |   |   | Movement |   |
| All      day audience share    |   |                              | 41.5   | % |   |   | 43.0 | % |   |   | (1.5 | )% |
| All      day ratings           |   |                              | 4.7    | % |   |   | 4.8 | % |   |   | (0.1 | )% |
| Prime      time audience share |   |                              | 45.8   | % |   |   | 46.8 | % |   |   | (1.0 | )% |
| Prime      time ratings        |   |                              | 13.5   | % |   |   | 14.1 | % |   |   | (0.6 | )% |

|                          |   |                                                    |    |
|-------------------------------|--------|---------------------------------------------------------|---------|
|                          |   | For      the Years Ended December 31, (US$ 000’s) |    |
|                          |   |                                                    |    |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |    |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 345,077 |   |   | $ | 254,545 |   |   |   | 35.6 | % |   |   | 15.8 | % |   | $ | 254,545 |   |   | $ | 181,965 |   |   |   | 39.9 | % |   |   | 24.2 | % |
| Non-spot      revenues        |   |                                                    | 31,469  |   |   |   | 24,692 |   |   |   | 27.4 | % |   |   | 8.2 | % |   |   | 24,692 |   |   |   | 26,422 |   |   |   | (6.5 | )% |   |   | (16.4 | ) |
| Segment      Net Revenues     |   | $                                                       | 376,546 |   |   | $ | 279,237 |   |   |   | 34.8 | % |   |   | 15.1 | % |   | $ | 279,237 |   |   | $ | 208,387 |   |   |   | 34.0 | % |   |   | 19.1 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 374,100 |   |   | $ | 278,785 |   |   |   | 34.2 | % |   |   | 14.6 | % |   | $ | 278,785 |   |   | $ | 207,671 |   |   |   | 34.2 | % |   |   | 19.3 | % |
| Non-broadcast      operations |   |                                                    | 2,446   |   |   |   | 452 |   |   |   | 441.2 | % |   |   | 392.5 | % |   |   | 452 |   |   |   | 716 |   |   |   | (36.9 | )% |   |   | (48.9 | )% |
| Segment      Net Revenues     |   | $                                                       | 376,546 |   |   | $ | 279,237 |   |   |   | 34.8 | % |   |   | 15.1 | % |   | $ | 279,237 |   |   | $ | 208,387 |   |   |   | 34.0 | % |   |   | 19.1 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | 208,655 |   |   | $ | 156,496 |   |   |   | 33.3 | % |   |   | 14.6 | % |   | $ | 156,496 |   |   | $ | 100,488 |   |   |   | 55.7 | % |   |   | 37.0 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 212,618 |   |   | $ | 157,362 |   |   |   | 35.1 | % |   |   | 16.1 | % |   | $ | 157,362 |   |   | $ | 100,724 |   |   |   | 56.2 | % |   |   | 37.4 | % |
| Non-broadcast      operations |   |                                                    | (3,963  | ) |   |   | (866 | ) |   |   | 357.6 | % |   |   | (271.7 | )% |   |   | (866 | ) |   |   | (236 | ) |   |   | (266.9 | )% |   |   | (192.6 | )% |
| Segment      EBITDA           |   | $                                                       | 208,655 |   |   | $ | 156,496 |   |   |   | 33.3 | % |   |   | 14.6 | % |   | $ | 156,496 |   |   | $ | 100,488 |   |   |   | 55.7 | % |   |   | 37.0 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | 55      | % |   |   | 56 | % |   |   | (1 | )% |   |   | (1 | )% |   |   | 56 | % |   |   | 48 | % |   |   | 8 | % |   |   | 7 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| · | Segment Net      Revenues for the year ended December 31, 2008 increased      by 35% compared to the year ended December 31, 2007. In constant currency,      Segment Net Revenues increased by 15%. Spot revenues increased by 36%, or      16% in constant currency, in 2008 compared to 2007 and non-spot revenue      revenues increased by 27%, or 8% in constant currency. The increase in      spot revenues was primarily due to an increase in prices, in particular      our success in increasing the amount spent by advertisers in off prime      time and in the low season.  The volume of GRPs sold in 2008 was      broadly in line with 2007, although in December we sold a lower proportion      of the GRPs that we generated compared to the prior year. The increase in      non-spot revenues was primarily due to a dedicated internet sales team,      the acquisition of websites and services including Blog.cz and Jyxo.cz in      May 2008, as well as the launch of TN.cz and the upgrading of our website,      NOVA.cz to include video-on-demand  capability. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA for the      year ended December 31, 2008 increased by 33% compared to the year ended      December 31, 2007, resulting in an EBITDA margin of 55% compared to 56% in      2007.  In constant currency, Segment EBITDA increased by      15%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                           |   | For      Years Ended December 31, |   |
|--------------------------------|--------|-----------------------------------|--------|
|                           |   | 2008                              |   |   | 2007 |   |   | Movement |   |
| All      day audience share    |   |                              | 28.8   | % |   |   | 30.6 | % |   |   | (1.8 | )% |
| All      day ratings           |   |                              | 4.5    | % |   |   | 4.1 | % |   |   | 0.4 | % |
| Prime      time audience share |   |                              | 32.6   | % |   |   | 32.4 | % |   |   | 0.2 | % |
| Prime      time ratings        |   |                              | 10.8   | % |   |   | 9.6 | % |   |   | 1.2 | % |

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|                          |   |                                                    |          |
|-------------------------------|--------|---------------------------------------------------------|---------------|
|                          |   | For      the Years Ended December 31, (US$ 000’s) |          |
|                          |   |                                                    |          |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |          |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 253,649       |   |   | $ | 202,414 |   |   |   | 25.3 | % |   |   | - |   |   | $ | 202,414 |   |   | $ | 140,242 |   |   |   | 44.3 | % |   |   | - |   |
| Non-spot      revenues        |   |                                                    | 20,978        |   |   |   | 12,988 |   |   |   | 61.5 | % |   |   | - |   |   |   | 12,988 |   |   |   | 8,374 |   |   |   | 55.1 | % |   |   | - |   |
| Segment      Net Revenues     |   | $                                                       | 274,627       |   |   | $ | 215,402 |   |   |   | 27.5 | % |   |   | - |   |   | $ | 215,402 |   |   | $ | 148,616 |   |   |   | 44.9 | % |   |   | - |   |
|                          |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 273,      270 |   |   | $ | 214,976 |   |   |   | 27.1 | % |   |   | - |   |   | $ | 214,976 |   |   | $ | 148,616 |   |   |   | 44.7 | % |   |   | - |   |
| Non-broadcast      operations |   |                                                    | 1,357         |   |   |   | 426 |   |   |   | 218.5 | % |   |   | - |   |   |   | 426 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Segment      Net Revenues     |   | $                                                       | 274,627       |   |   | $ | 215,402 |   |   |   | 27.5 | % |   |   | - |   |   | $ | 215,402 |   |   | $ | 148,616 |   |   |   | 44.9 | % |   |   | - |   |
|                          |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | 111,783       |   |   | $ | 93,075 |   |   |   | 20.1 | % |   |   | - |   |   | $ | 93,075 |   |   | $ | 65,860 |   |   |   | 41.3 | % |   |   | - |   |
|                          |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 112,523       |   |   | $ | 93,585 |   |   |   | 20.2 | % |   |   | - |   |   | $ | 93,585 |   |   | $ | 65,976 |   |   |   | 41.8 | % |   |   | - |   |
| Non-broadcast      operations |   |                                                    | (740          | ) |   |   | (510 | ) |   |   | 45.1 | % |   |   | - |   |   |   | (510 | ) |   |   | (116 | ) |   |   | (339.7 | )% |   |   | - |   |
| Segment      EBITDA           |   | $                                                       | 111,783       |   |   | $ | 93,075 |   |   |   | 20.1 | % |   |   | - |   |   | $ | 93,075 |   |   | $ | 65,860 |   |   |   | 41.3 | % |   |   | - |   |
|                          |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | 41            | % |   |   | 43 | % |   |   | (2 | )% |   |   | - |   |   |   | 43 | % |   |   | 44 | % |   |   | (1 | )% |   |   | - |   |
|                          |   |                                                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| · | Segment Net Revenues      for the year ended December 31,      2008 increased by 27%, compared to the year ended December 31, 2007. Spot      revenues increased by 25% and non-spot revenues increased by 62%. The      functional currency of our Romania operations changed from the dollar to      the New Romanian lei with effect from January 1, 2008; for comparative      purposes, Segment Net Revenues increased by 32% in New Romanian lei in      2008.  The increase in net spot revenues is attributable to an      increase in prices which more than offset a decline in the volume of GRPs      sold.  We sold a lower proportion of the GRPs that we generated      in 2008 than in 2007; a trend that increased sharply in November and      December when advertisers reduced spending significantly. The increase in      non-spot revenue of 62% was primarily due to increased cable tariff      revenue generated by PRO TV INTERNATIONAL, SPORT.RO, PRO CINEMA and MTV      ROMANIA, launched in December 2007. MTV ROMANIA contributed approximately      US $5.7 million to Romania’s Segment Net Revenues for the year ended      December 31, 2008. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA for      the year ended December 31, 2008 increased by 20%, compared to the year      ended December 31, 2007, resulting in an EBITDA margin of 41%, compared to      43% in 2007. In constant currency, Segment EBITDA increased by      25%. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | For      Years Ended December 31, |   |
|--------------------------------|--------|-----------------------------------|--------|
|                           |   | 2008                              |   |   | 2007 |   |   | Movement |   |
| All      day audience share    |   |                              | 35.1   | % |   |   | 35.5 | % |   |   | (0.4 | )% |
| All      day ratings           |   |                              | 4.5    | % |   |   | 4.8 | % |   |   | (0.3 | )% |
| Prime      time audience share |   |                              | 37.7   | % |   |   | 39.5 | % |   |   | (1.8 | )% |
| Prime      time ratings        |   |                              | 13.6   | % |   |   | 14.8 | % |   |   | (1.2 | )% |

|                          |   |                                                    |    |
|-------------------------------|--------|---------------------------------------------------------|---------|
|                          |   | For      the Years Ended December 31, (US$ 000’s) |    |
|                          |   |                                                    |    |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |    |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 122,527 |   |   | $ | 106,445 |   |   |   | 15.1 | % |   |   | 1.0 | % |   | $ | 106,445 |   |   | $ | 69,336 |   |   |   | 53.5 | % |   |   | 26.7 | % |
| Non-spot      revenues        |   |                                                    | 10,165  |   |   |   | 4,094 |   |   |   | 148.3 | % |   |   | 115.2 | % |   |   | 4,094 |   |   |   | 4,084 |   |   |   | 0.2 | % |   |   | (16.5 | )% |
| Segment      Net Revenues     |   | $                                                       | 132,692 |   |   | $ | 110,539 |   |   |   | 20.0 | % |   |   | 5.3 | % |   | $ | 110,539 |   |   | $ | 73,420 |   |   |   | 50.6 | % |   |   | 24.3 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 132,367 |   |   | $ | 110,158 |   |   |   | 20.2 | % |   |   | 5.4 | % |   | $ | 110,158 |   |   | $ | 73,266 |   |   |   | 50.4 | % |   |   | 29.3 | % |
| Non-broadcast      operations |   |                                                    | 325     |   |   |   | 381 |   |   |   | (14.7 | )% |   |   | (26.7 | )% |   |   | 381 |   |   |   | 154 |   |   |   | 147.4 | % |   |   | 90.5 | % |
| Segment      Net Revenues     |   | $                                                       | 132,692 |   |   | $ | 110,539 |   |   |   | 20.0 | % |   |   | 5.3 | % |   | $ | 110,539 |   |   | $ | 73,420 |   |   |   | 50.6 | % |   |   | 24.3 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | 50,228  |   |   | $ | 41,532 |   |   |   | 20.9 | % |   |   | 7.6 | % |   | $ | 41,532 |   |   | $ | 20,805 |   |   |   | 99.6 | % |   |   | 59.9 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 51,452  |   |   | $ | 41,957 |   |   |   | 22.6 | % |   |   | 9.0 | % |   | $ | 41,957 |   |   | $ | 20,879 |   |   |   | 101.0 | % |   |   | 53.7 | % |
| Non-broadcast      operations |   |                                                    | (1,224  | ) |   |   | (425 | ) |   |   | 188.0 | % |   |   | (140.7 | )% |   |   | (425 | ) |   |   | (74 | ) |   | nm%(3) |   |   | nm%(3) |   |
| Segment      EBITDA           |   | $                                                       | 50,228  |   |   | $ | 41,532 |   |   |   | 20.9 | % |   |   | 7.6 | % |   | $ | 41,532 |   |   | $ | 20,805 |   |   |   | 99.6 | % |   |   | 59.9 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | 38      | % |   |   | 38 | % |   |   | 0 | % |   |   | 1 | % |   |   | 38 | % |   |   | 28 | % |   |   | 10 | % |   |   | 9 | % |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| · | Segment Net      Revenues for the year ended December 31, 2008 increased by 20%      compared to the year ended December 31, 2007. In constant currency,      Segment Net Revenues increased by 5%. The increase in spot revenues was      mainly due to an increase in prices offsetting a decrease in the volume of      GRPs sold.  Non-spot revenues grew mainly due to an increase in      sponsorship of new formats, such as ‘Elan je Elan’, ‘Lets Dance’ and ‘Got      Talent’. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA for      the year ended December 31, 2008 increased by 21% compared to the year      ended December 31, 2007, and the EBITDA margin remained constant at 38%      for both years. In constant currency, Segment EBITDA increased by      8%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | For      the Years Ended December 31, |   |
|--------------------------------|--------|---------------------------------------|--------|
|                           |   | 2008                                  |   |   | 2007 |   |   | Movement |   |
| All      day audience share    |   |                                  | 40.4   | % |   |   | 40.4 | % |   |   | 0.0 | % |
| All      day ratings           |   |                                  | 4.5    | % |   |   | 4.6 | % |   |   | (0.1 | )% |
| Prime      time audience share |   |                                  | 47.4   | % |   |   | 47.5 | % |   |   | (0.1 | )% |
| Prime      time ratings        |   |                                  | 11.6   | % |   |   | 11.9 | % |   |   | (0.3 | )% |

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|                          |   |                                                    |   |
|-------------------------------|--------|---------------------------------------------------------|--------|
|                          |   | For      the Years Ended December 31, (US$ 000’s) |   |
|                          |   |                                                    |   |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |   |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 69,497 |   |   | $ | 60,559 |   |   |   | 14.8 | % |   |   | 8.7 | % |   | $ | 60,559 |   |   | $ | 50,682 |   |   |   | 19.5 | % |   |   | 8.5 | % |
| Non-spot      revenues        |   |                                                    | 11,200 |   |   |   | 9,088 |   |   |   | 23.2 | % |   |   | 18.5 | % |   |   | 9,088 |   |   |   | 3,852 |   |   |   | 135.9 | % |   |   | 114.3 | % |
| Segment      Net Revenues     |   | $                                                       | 80,697 |   |   | $ | 69,647 |   |   |   | 15.9 | % |   |   | 10.0 | % |   | $ | 69,647 |   |   | $ | 54,534 |   |   |   | 27.7 | % |   |   | 16.0 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 75,963 |   |   | $ | 67,574 |   |   |   | 12.4 | % |   |   | 6.7 | % |   | $ | 67,574 |   |   | $ | 52,426 |   |   |   | 28.9 | % |   |   | 17.3 | % |
| Non-broadcast      operations |   |                                                    | 4,734  |   |   |   | 2,073 |   |   |   | 128.4 | % |   |   | 114.2 | % |   |   | 2,073 |   |   |   | 2,108 |   |   |   | (1.7 | )% |   |   | (15.6 | )% |
| Segment      Net Revenues     |   | $                                                       | 80,697 |   |   | $ | 69,647 |   |   |   | 15.9 | % |   |   | 10.0 | % |   | $ | 69,647 |   |   | $ | 54,534 |   |   |   | 27.7 | % |   |   | 16.0 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | 25,413 |   |   | $ | 22,767 |   |   |   | 11.6 | % |   |   | 8.8 | % |   | $ | 22,767 |   |   | $ | 19,842 |   |   |   | 14.7 | % |   |   | 4.2 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 24,620 |   |   | $ | 24,249 |   |   |   | 1.5 | % |   |   | (1.5 | )% |   | $ | 24,249 |   |   | $ | 19,518 |   |   |   | 24.2 | % |   |   | 12.1 | % |
| Non-broadcast      operations |   |                                                    | 793    |   |   |   | (1,482 | ) |   |   | 153.5 | % |   |   | 154.8 | % |   |   | (1,482 | ) |   |   | 324 |   |   | nm%(3) |   |   | nm%(3) |   |
| Segment      EBITDA           |   | $                                                       | 25,413 |   |   | $ | 22,767 |   |   |   | 11.6 | % |   |   | 8.8 | % |   | $ | 22,767 |   |   | $ | 19,842 |   |   |   | 14.7 | % |   |   | 4.2 | % |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | 31     | % |   |   | 33 | % |   |   | (2 | )% |   |   | (1 | )% |   |   | 33 | % |   |   | 36 | % |   |   | (3 | )% |   |   | (4 | )% |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| · | Segment Net      Revenues for the year ended December 31, 2008 increased by 16%      compared to the year ended December 31, 2007.  In constant      currency, Segment Net Revenues increased by 10%. Spot revenues increased      by 9% in 2008 in constant currency compared to 2007, due to increased      spending from existing customers and increased prices.  We sold      a higher proportion of the GRPs that we generated in the first nine months      of 2008 than in the same period of 2007, however this trend reversed      sharply in November and December when advertisers reduced spending      significantly. Non-spot revenues increased by 19% in constant currency      compared to 2007, primarily driven by an increase in internet      revenues. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA for      the year ended December 31, 2008 increased by 12% compared to the year      ended December 31, 2007. In constant currency, Segment EBITDA increased by      9%. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | For      the Years Ended December 31, |   |
|--------------------------------|--------|---------------------------------------|--------|
|                           |   | 2008                                  |   |   | 2007 |   |   | Movement |   |
| All      day audience share    |   |                                  | 12.0   | % |   |   | 16.3 | % |   |   | (4.3 | )% |
| All      day ratings           |   |                                  | 2.2    | % |   |   | 3.0 | % |   |   | (0.8 | )% |
| Prime      time audience share |   |                                  | 13.2   | % |   |   | 18.1 | % |   |   | (4.9 | )% |
| Prime      time ratings        |   |                                  | 4.9    | % |   |   | 6.7 | % |   |   | (1.8 | )% |

----

Table of Contents

|                          |   |                                                    |    |
|-------------------------------|--------|---------------------------------------------------------|---------|
|                          |   | For      the Years Ended December 31, (US$ 000’s) |    |
|                          |   |                                                    |    |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |    |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 81,266  |   |   | $ | 102,204 |   |   |   | (20.5 | )% |   |   | - |   |   | $ | 102,204 |   |   | $ | 86,042 |   |   |   | 18.8 | % |   |   | - |   |
| Non-spot      revenues        |   |                                                    | 15,472  |   |   |   | 23,119 |   |   |   | (33.1 | )% |   |   | - |   |   |   | 23,119 |   |   |   | 10,371 |   |   |   | 122.9 | % |   |   | - |   |
| Segment      Net Revenues     |   | $                                                       | 96,738  |   |   | $ | 125,323 |   |   |   | (22.8 | )% |   |   | - |   |   | $ | 125,323 |   |   | $ | 96,413 |   |   |   | 30.0 | % |   |   | - |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 96,639  |   |   | $ | 125,323 |   |   |   | (22.9 | )% |   |   | - |   |   | $ | 125,323 |   |   | $ | 96,413 |   |   |   | 30.0 | % |   |   | - |   |
| Non-broadcast      operations |   |                                                    | 99      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Segment      Net Revenues     |   | $                                                       | 96,738  |   |   | $ | 125,323 |   |   |   | (22.8 | )% |   |   | - |   |   | $ | 125,323 |   |   | $ | 96,413 |   |   |   | 30.0 | % |   |   | - |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | (32,944 | ) |   | $ | 27,000 |   |   |   | (222.0 | )% |   |   | - |   |   | $ | 27,000 |   |   | $ | 29,973 |   |   |   | (9.9 | )% |   |   | - |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | (31,285 | ) |   | $ | 27,527 |   |   |   | (213.6 | )% |   |   | - |   |   | $ | 27,527 |   |   | $ | 30,045 |   |   |   | (8.4 | )% |   |   | - |   |
| Non-broadcast      operations |   |                                                    | (1,659  | ) |   |   | (527 | ) |   |   | (214.8 | )% |   |   | - |   |   |   | (527 | ) |   |   | (72 | ) |   | nm%(3) |   |   |   | - |   |
| Segment      EBITDA           |   | $                                                       | (32,944 | ) |   | $ | 27,000 |   |   |   | (222.0 | )% |   |   | - |   |   | $ | 27,000 |   |   | $ | 29,973 |   |   |   | (9.9 | )% |   |   | - |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | (34     | )% |   |   | 22 | % |   |   | (56 | )% |   |   | - |   |   |   | 22 | % |   |   | 31 | % |   |   | (9 | )% |   |   | - |   |
|                          |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| · | Segment Net      Revenues for the year ended December 31, 2008 decreased by 23%      compared to the year ended December 31, 2007. Spot revenues decreased by      21%, reflecting the impact of US$16.5 million of political advertising in      2007, the decline of our ratings and a significant downturn of the overall      market late in the year. Non-spot revenues decreased by 33% in 2008      compared to 2007 primarily due to the absence of one-off revenues from the      sale of surplus programming as compared to 2007 and the impact of US$ 1.5      million of political advertisingrevenues. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Segment EBITDA forthe year ended December 31,      2008 decreased by US$ 59.9 million compared to the year ended December 31,      2007. Costs charged in arriving at Segment EBITDA for 2008 increased by      32% compared to 2007. Cost of programming grew by 24% mostly due to an      expense of US$ 18.8 million to write down programming as a result of      schedule revisions and deteriorating sales projections for 2009. Other      operating costs increased by 17% due to the costs of terminating 120      employees and higher transmission charges from RRT, the state      telecommunications company. Selling, general and administrative expenses      increased by 132%, reflecting an estimated charge of US$ 4.9 million      payable following the early termination of our agreements with Video      International      Group. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                     |   | For      the Years Ended December 31, |   |
|----------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                     |   | 2008                                       |   |   | 2007 |   |   | Movement |   |
| KINO:      Target (15-50) prime time audience share      |   |                                       | 0.6    | % |   |   | 0.6 | % |   |   | 0.0 | % |
| CITI:      Target (15-50 Kiev) prime time audience share |   |                                       | 1.1    | % |   |   | 2.0 | % |   |   | (0.9 | )% |

----

Table of Contents

|                          |   | For      the Years Ended December 31, (US$ 000’s) |   |
|-------------------------------|--------|---------------------------------------------------------|--------|
|                          |   |                                                    |   |   |   |   |   | Movement |   |   |   |   |   |   |   |   | Movement |   |
|                          |   | 2008                                                    |   |   | 2007 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |   | 2007 |   |   | 2006 |   |   | %      Act(1) |   |   | %      Lfl(2) |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spot      revenues            |   | $                                                       | 1,214  |   |   | $ | 907 |   |   |   | 33.8 | % |   |   | - |   |   | $ | 907 |   |   | $ | 387 |   |   |   | 134.4 | % |   |   | - |   |
| Non- spot      revenues  |   |                                                    | 1,506  |   |   |   | 608 |   |   |   | 147.7 | % |   |   | - |   |   |   | 608 |   |   |   | 339 |   |   |   | 79.4 | % |   |   | - |   |
| Segment      Net Revenues     |   | $                                                       | 2,720  |   |   | $ | 1,515 |   |   |   | 79.6 | % |   |   | - |   |   | $ | 1,515 |   |   | $ | 726 |   |   |   | 108.7 | % |   |   | - |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | 2,720  |   |   | $ | 1,515 |   |   |   | 79.6 | % |   |   | - |   |   | $ | 1,515 |   |   | $ | 726 |   |   |   | 108.7 | % |   |   | - |   |
| Non-broadcast      operations |   |                                                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Segment      Net Revenues     |   | $                                                       | 2,720  |   |   | $ | 1,515 |   |   |   | 79.6 | % |   |   | - |   |   | $ | 1,515 |   |   | $ | 726 |   |   |   | 108.7 | % |   |   | - |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA           |   | $                                                       | (1,855 | ) |   | $ | (3,536 | ) |   |   | 47.5 | % |   |   | - |   |   | $ | (3,536 | ) |   | $ | (1,795 | ) |   |   | (97.0 | )% |   |   | - |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Represented      by           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broadcast      operations     |   | $                                                       | (1,855 | ) |   | $ | (3,536 | ) |   |   | 47.5 | % |   |   | - |   |   | $ | (3,536 | ) |   | $ | (1,795 | ) |   |   | (97.0 | )% |   |   | - |   |
| Non-broadcast      operations |   |                                                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Segment      EBITDA           |   | $                                                       | (1,855 | ) |   | $ | (3,536 | ) |   |   | 47.5 | % |   |   | - |   |   | $ | (3,536 | ) |   | $ | (1,795 | ) |   |   | (97.0 | )% |   |   | - |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      EBITDA Margin    |   |                                                    | (68    | )% |   |   | (233 | )% |   |   | 165 | % |   |   | - |   |   |   | (233 | )% |   |   | (248 | )% |   |   | 15 | % |   |   | - |   |
|                          |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| · | Segment Net      Revenues for the year ended December 31, 2008 increased by 80%      compared to the year ended December 31, 2007. Spot revenues increased by      34%. Non-spot revenues increased by 148%, primarily due to home shopping      channels, interactive, gameshow and program-related      revenues. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                      |   | For      the Years Ended December 31, (US$ 000’s) |    |
|---------------------------|--------|---------------------------------------------------------|---------|
|                      |   | 2008                                                    |    |   | 2007 |   |   | 2006 |   |
| Production      expenses  |   | $                                                       | 194,759 |   |   | $ | 138,696 |   |   | $ | 110,126 |   |
| Program      amortization |   |                                                    | 243,444 |   |   |   | 188,534 |   |   |   | 116,007 |   |
| Cost      of programming  |   | $                                                       | 438,203 |   |   | $ | 327,230 |   |   | $ | 226,133 |   |

| · | US$      31.4 million of additional programming costs from our Czech Republic      operations; |
|--------|------------------------------------------------------------------------------------------------|

| · | US$      29.4 million of additional programming costs from our Romania      operations; |
|--------|-----------------------------------------------------------------------------------------|

| · | US$      17.5 million of additional programming costs from our Ukraine (STUDIO 1+1)      operations; |
|--------|------------------------------------------------------------------------------------------------------|

| · | US$      14.9 million of additional programming costs from our Slovak Republic      operations; |
|--------|-------------------------------------------------------------------------------------------------|

| · | US$      7.4 million of additional programming costs from our Croatia      operations; |
|--------|----------------------------------------------------------------------------------------|

| · | US$      6.5 million of additional programming costs from our newly acquired      Bulgaria operations; |
|--------|--------------------------------------------------------------------------------------------------------|

| · | US$      4.8 million of additional programming costs from our Slovenia operations;      and |
|--------|---------------------------------------------------------------------------------------------|

| · | US$      (0.9) million decrease in programming costs from our Ukraine (KINO, CITI)      operations. |
|--------|-----------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                       |   | For      the Years Ended December 31, (US$ 000’s) |    |
|--------------------------------------------|--------|---------------------------------------------------------|---------|
|                                       |   | 2008                                                    |    |   | 2007 |   |   | 2006 |   |
| Program      amortization:                 |   |                                                    |    |   |   |   |   |   |   |
| Bulgaria      (1)                          |   | $                                                       | 2,865   |   |   | $ | - |   |   | $ | - |   |
| Croatia      (NOVA TV)                     |   |                                                    | 21,229  |   |   |   | 20,784 |   |   |   | 14,237 |   |
| Czech      Republic  (2)         |   |                                                    | 57,580  |   |   |   | 34,992 |   |   |   | 27,170 |   |
| Romania      (3)                           |   |                                                    | 55,253  |   |   |   | 44,673 |   |   |   | 30,610 |   |
| Slovak Republic      (TV MARKIZA) (4) |   |                                                    | 20,855  |   |   |   | 16,326 |   |   |   | 7,539 |   |
| Slovenia      (POP TV and KANAL A)         |   |                                                    | 13,076  |   |   |   | 10,289 |   |   |   | 7,164 |   |
| Ukraine      (STUDIO 1+1)                  |   |                                                    | 71,054  |   |   |   | 59,591 |   |   |   | 28,355 |   |
| Ukraine      (KINO, CITI) (5)              |   |                                                    | 1,532   |   |   |   | 1,879 |   |   |   | 932 |   |
|                                       |   | $                                                       | 243,444 |   |   | $ | 188,534 |   |   | $ | 116,007 |   |

| Cash      paid for programming:            |   |   |    |   |   |   |    |   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Bulgaria      (1)                          |   | $      | 10,117  |   |   | $      | -       |   |   | $ | - |   |
| Croatia      (NOVA TV)                     |   |   | 24,922  |   |   |   | 22,894  |   |   |   | 17,165 |   |
| Czech      Republic (2)                    |   |   | 35,638  |   |   |   | 27,343  |   |   |   | 28,237 |   |
| Romania      (3)                           |   |   | 73,223  |   |   |   | 61,271  |   |   |   | 48,277 |   |
| Slovak Republic      (TV MARKIZA) (4) |   |   | 23,905  |   |   |   | 18,273  |   |   |   | 12,598 |   |
| Slovenia      (POP TV and KANAL A)         |   |   | 11,300  |   |   |   | 9,751   |   |   |   | 7,067 |   |
| Ukraine      (STUDIO 1+1)                  |   |   | 47,671  |   |   |   | 68,597  |   |   |   | 38,419 |   |
| Ukraine      (KINO, CITI)  (5)   |   |   | 987     |   |   |   | 1,890   |   |   |   | 1,096 |   |
|                                       |   | $      | 227,763 |   |   | $      | 210,019 |   |   | $ | 152,859 |   |

| (1) | We      acquired our Bulgaria operations (TV2, RING TV) on August 1,      2008. |
|-----|---------------------------------------------------------------------------------|

| (2) | Our      Czech Republic operations comprise TV NOVA, NOVA SPORT and NOVA      CINEMA, which was launched in December2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (3) | Romanian      channels are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL, SPORT.RO and      MTV ROMANIA for the years ended December 31, 2008 and 2007 and PRO TV, PRO      CINEMA, ACASA  and PRO TV INTERNATIONAL for the year ended      December 31, 2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Our      Slovak Republic operations were accounted for as an equity affiliate      until January 23, 2006. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (5) | We      acquired our Ukraine (KINO, CITI) operations on January 11,      2006. |
|-----|--------------------------------------------------------------------------------|

----

Table of Contents

|                                 |   | Consolidated      Net Revenues                          |      |
|--------------------------------------|--------|---------------------------------------------------------|-----------|
|                                 |   | For      the Years Ended December 31, (US$ 000’s) |      |
|                                 |   | 2008                                                    |      |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Bulgaria      (1)                    |   | $                                                       | 1,263     |   |   | $ | - |   |   |   | - | % |   | $ | - |   |   | $ | - |   |   |   | - | % |
| Croatia                              |   |                                                    | 54,651    |   |   |   | 37,193 |   |   |   | 46.9 | % |   |   | 37,193 |   |   |   | 22,310 |   |   |   | 66.7 | % |
| Czech Republic                  |   |                                                    | 376,546   |   |   |   | 279,237 |   |   |   | 34.9 | % |   |   | 279,237 |   |   |   | 208,387 |   |   |   | 34.0 | % |
| Romania                              |   |                                                    | 274,627   |   |   |   | 215,402 |   |   |   | 27.5 | % |   |   | 215,402 |   |   |   | 148,616 |   |   |   | 44.9 | % |
| Slovakia                             |   |                                                    | 132,693   |   |   |   | 110,539 |   |   |   | 20.0 | % |   |   | 110,539 |   |   |   | 71,660 |   |   |   | 54.3 | % |
| Slovenia                             |   |                                                    | 80,696    |   |   |   | 69,647 |   |   |   | 15.9 | % |   |   | 69,647 |   |   |   | 54,534 |   |   |   | 27.7 | % |
| Ukraine      (STUDIO 1+1)            |   |                                                    | 96,738    |   |   |   | 125,323 |   |   |   | (22.8 | )% |   |   | 125,323 |   |   |   | 96,413 |   |   |   | 30.0 | % |
| Ukraine      (KINO, CITI) (2)        |   |                                                    | 2,720     |   |   |   | 1,515 |   |   |   | 79.5 | % |   |   | 1,515 |   |   |   | 726 |   |   |   | 108.7 | % |
| Total      Consolidated Net Revenues |   | $                                                       | 1,019,934 |   |   | $ | 838,856 |   |   |   | 21.6 | % |   | $ | 838,856 |   |   | $ | 602,646 |   |   |   | 39.2 | % |

|  | (1) | We      acquired our Bulgaria operations on August 1,  2008. |
|--|-----|--------------------------------------------------------------|

|  | (2) | We      acquired our Ukraine (KINO, CITI) operations on January 11,      2006. |
|--|-----|--------------------------------------------------------------------------------|

|                                                          |   | Consolidated      Cost of Revenues                      |    |
|---------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                          |   | For      the Years Ended December 31, (US$ 000’s) |    |
|                                                          |   | 2008                                                    |    |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Operating      Costs                                          |   | $                                                       | 145,210 |   |   | $ | 116,859 |   |   |   | 24.3 | % |   | $ | 116,859 |   |   | $ | 89,486 |   |   |   | 30.1 | % |
| Cost      of programming                                      |   |                                                    | 438,203 |   |   |   | 327,230 |   |   |   | 33.9 | % |   |   | 327,230 |   |   |   | 226,133 |   |   |   | 44.7 | % |
| Depreciation      of station property, plant and equipment    |   |                                                    | 51,668  |   |   |   | 32,653 |   |   |   | 58.2 | % |   |   | 32,653 |   |   |   | 25,430 |   |   |   | 28.4 | % |
| Amortization      of broadcast licenses and other intangibles |   |                                                    | 35,381  |   |   |   | 24,970 |   |   |   | 41.7 | % |   |   | 24,970 |   |   |   | 18,799 |   |   |   | 32.8 | % |
| Total      Consolidated Cost of Revenues                      |   | $                                                       | 670,462 |   |   | $ | 501,712 |   |   |   | 33.6 | % |   | $ | 501,712 |   |   | $ | 359,848 |   |   |   | 39.4 | % |

----

Table of Contents

|                                                                              |   | Consolidated      Station Selling, General and Administrative Expenses |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                              |   | For      the Years Ended December 31, (US$ 000’s)                |   |
|                                                                              |   | 2008                                                                   |   |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Bulgaria                                                                          |   | $                                                                      | 2,653  |   |   | $ | - |   |   | nm(1) |   |   | $ | - |   |   | $ | - |   |   |   | - |   |
| Croatia                                                                           |   |                                                                   | 7,758  |   |   |   | 8,844 |   |   |   | (12.3 | )% |   |   | 8,844 |   |   |   | 6,884 |   |   |   | 28.5 | % |
| Czech Republic                                                               |   |                                                                   | 25,498 |   |   |   | 22,411 |   |   |   | 13.8 | % |   |   | 22,411 |   |   |   | 21,358 |   |   |   | 4.9 | % |
| Romania                                                                           |   |                                                                   | 15,877 |   |   |   | 13,552 |   |   |   | 17.2 | % |   |   | 13,552 |   |   |   | 10,725 |   |   |   | 26.4 | % |
| Slovakia                                                                          |   |                                                                   | 10,923 |   |   |   | 10,732 |   |   |   | 1.8 | % |   |   | 10,732 |   |   |   | 8,547 |   |   |   | 25.6 | % |
| Slovenia                                                                          |   |                                                                   | 8,132  |   |   |   | 6,707 |   |   |   | 21.2 | % |   |   | 6,707 |   |   |   | 5,195 |   |   |   | 29.1 | % |
| Ukraine      (STUDIO 1+1)                                                         |   |                                                                   | 19,240 |   |   |   | 8,292 |   |   |   | 132.0 | % |   |   | 8,292 |   |   |   | 11,818 |   |   |   | (29.8 | )% |
| Ukraine      (KINO, CITI)                                                         |   |                                                                   | 760    |   |   |   | 777 |   |   |   | (2.2 | )% |   |   | 777 |   |   |   | 448 |   |   |   | 73.4 | % |
| Total      Consolidated Station Selling, General and Administrative      Expenses |   | $                                                                      | 90,841 |   |   | $ | 71,315 |   |   |   | 27.4 | % |   | $ | 71,315 |   |   | $ | 64,975 |   |   |   | 9.8 | % |

----

Table of Contents

|                                                                            |   | For      the Years Ended December 31, (US$ 000’s) |   |
|---------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                            |   | 2008                                                    |   |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Corporate      operating costs (excluding non-cash stock-based    compensation) |   | $                                                       | 43,569 |   |   | $ | 49,639 |   |   |   | (12.2 | )% |   | $ | 49,639 |   |   | $ | 30,529 |   |   |   | 62.6 | % |
| Non-cash      stock-based compensation                                          |   |                                                    | 6,107  |   |   |   | 5,734 |   |   |   | 6.5 | % |   |   | 5,734 |   |   |   | 3,575 |   |   |   | 60.4 | % |
| Corporate      operating costs (including non-cash stock-based    compensation) |   | $                                                       | 49,676 |   |   | $ | 55,373 |   |   |   | (10.3 | )% |   | $ | 55,373 |   |   | $ | 34,104 |   |   |   | 62.4 | % |

| · | an      increase in travel costs, primarily related to the use of a chartered      aircraft and salary and travel costs following the establishment of a      centralized planning and development function to manage our initiatives to      improve operational efficiencies; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a      further increase in staff-related costs as a result of redundancy payments      following headcount reductions in the fourth quarter;    and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | an      increase in business development expenses incurred in evaluating potential      investments. |
|--------|------------------------------------------------------------------------------------------------------|

| · | increased      accruals for performance-related bonus payments;  and |
|--------|----------------------------------------------------------------------|

| · | increased      business development expenses incurred in evaluating potential      investments, |
|--------|-------------------------------------------------------------------------------------------------|

| · | decreased      property-related costs, as the expense incurred in 2006 included a lease      exit charge of approximately US$ 1.6 million (including additional      depreciation of US$ 0.3 million) incurred following the relocation of our      London office during the first quarter of 2006;  and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | decreased      legal costs incurred in connection with legal proceedings in respect of      our Ukraine operations. |
|--------|---------------------------------------------------------------------------------------------------------------------|

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|                      |   | Long-Lived      Assets    |   |   | Goodwill      and Indefinite-Lived Intangible Assets |   |   |                         |   |
|---------------------------|--------|---------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------|--------|
|                      |   | Amortized      Trademarks |   |   | Amortized      Broadcast Licenses                    |   |   | Other      Intangible Assets |   |   | Indefinite-Lived      Trademarks |   |   | Goodwill |   |   | Total |   |
| Bulgaria                  |   | $                         | 222    |   |                                                 | $      | -      |                         |   | $ | 625 |   |   | $ | - |   |   | $ | 64,044 |   |   | $ | 64,891 |   |
| Ukraine      (STUDIO 1+1) |   |                      | -      |   |                                                 |   | -      |                         |   |   | - |   |   |   | 8,481 |   |   |   | 255,305 |   |   |   | 263,786 |   |
| Ukraine      (KINO, CITI) |   |                      | -      |   |                                                 |   | 637    |                         |   |   | - |   |   |   | - |   |   |   | 7,438 |   |   |   | 8,075 |   |
| Total                     |   | $                         | 222    |   |                                                 | $      | 637    |                         |   | $ | 625 |   |   | $ | 8,481 |   |   | $ | 326,787 |   |   | $ | 336,752 |   |

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|                           |   | For      the Years Ended December 31, (US$ 000’s) |     |
|--------------------------------|--------|---------------------------------------------------------|----------|
|                           |   | 2008                                                    |     |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Operating      (loss) / income |   | $                                                       | (127,797 | ) |   | $ | 210,456 |   |   |   | (160.7 | )% |   | $ | 210,456 |   |   | $ | 142,971 |   |   |   | 47.2 | % |

|                                                          |   | For      the Years Ended December 31, (US$ 000’s) |    |
|---------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                          |   | 2008                                                    |    |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Interest      income                                          |   | $                                                       | 10,006  |   |   | $ | 5,728 |   |   |   | 74.7 | % |   | $ | 5,728 |   |   | $ | 6,359 |   |   |   | (9.9 | )% |
| Interest      expense                                         |   |                                                    | (68,475 | ) |   |   | (54,936 | ) |   |   | 24.6 | % |   |   | (54,936 | ) |   |   | (44,212 | ) |   |   | 24.3 | % |
| Foreign      currency exchange loss, net                      |   |                                                    | (37,877 | ) |   |   | (34,409 | ) |   |   | 10.1 | % |   |   | (34,409 | ) |   |   | (44,892 | ) |   |   | (23.4 | )% |
| Other      income                                             |   |                                                    | 2,620   |   |   |   | 7,891 |   |   |   | (66.8 | )% |   |   | 7,891 |   |   |   | 3,059 |   |   |   | 157.9 | % |
| Change      in fair value of derivatives                      |   |                                                    | 6,360   |   |   |   | (3,703 | ) |   |   | (271.8 | )% |   |   | (3,703 | ) |   |   | (12,539 | ) |   |   | (70.5 | )% |
| Provision      for income taxes                               |   |                                                    | (34,525 | ) |   |   | (20,822 | ) |   |   | 65,8 | % |   |   | (20,822 | ) |   |   | (14,952 | ) |   |   | 39.3 | % |
| Minority      interest in income of consolidated subsidiaries |   |                                                    | (2,071  | ) |   |   | (17,157 | ) |   |   | (87.9 | )% |   |   | (17,157 | ) |   |   | (13,602 | ) |   |   | 26.1 | % |
| Equity      in (loss)/income of unconsolidated affiliates     |   |                                                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (730 | ) |   |   | 100 | %  |
| Gain      on sale of unconsolidated affiliate                 |   |                                                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,179 |   |   |   | (100 | )%  |
| Pre      tax loss on discontinued operations (Ukraine)        |   |                                                    | (3,849  | ) |   |   | (4,509 | ) |   |   | (14.6 | )% |   |   | (4,509 | ) |   |   | (2,354 | ) |   |   | 91.6 | % |
| Pre      tax loss on discontinued operations (Ukraine)        |   |                                                    | 64      |   |   |   | 29 |   |   |   | 120.7 | % |   |   | 29 |   |   |   | - |   |   |   | - |   |
| Discontinued      operations (Czech Republic)            |   |                                                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,863 | ) |   |   | 100 | % |
| Currency      translation adjustment, net                     |   |                                                    | (88,609 | ) |   |   | 158,825 |   |   |   | (155.8 | )% |   |   | 158,825 |   |   |   | 157,524 |   |   |   | n/m |   |

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|                                                      |   | For      the Years Ended December 31, (US$ 000’s) |   |
|-----------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                      |   | 2008                                                    |   |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Slovak Republic      operations                      |   | $                                                       | -      |   |   | $ | - |   |   |   | - | % |   | $ | - |   |   | $ | (737 | ) |   |   | (100.0 | )% |
| Romania      operations                                   |   |                                                    | -      |   |   |   | - |   |   |   | - | % |   |   | - |   |   |   | 7 |   |   |   | (100.0 | )% |
| Equity      in (loss)/income of unconsolidated affiliates |   | $                                                       | -      |   |   | $ | - |   |   |   | - | % |   | $ | - |   |   | $ | (730 | ) |   |   | (100.0 | )% |

|                                            |   | For      the Years Ended December 31, (US$ 000’s) |   |
|-------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                            |   | 2008                                                    |   |   | 2007 |   |   | Movement |   |   | 2007 |   |   | 2006 |   |   | Movement |   |
| Ukraine(KINO,      CITI)                        |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations          |   | $                                                       | (3,849 | ) |   | $ | (4,509 | ) |   |   | (14.6 | )% |   | $ | (4,509 | ) |   | $ | (2,354 | ) |   |   | 91.5 | % |
| Tax      on result of discontinued operations   |   |                                                    | 64     |   |   |   | 29 |   |   |   | 120.7 | % |   |   | 29 |   |   |   | - |   |   |   | 100 | % |
| Czech Republic                             |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      on disposal of discontinued operations |   |                                                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,863 | ) |   |   | (100.0 | )% |
| Discontinued      operations                    |   | $                                                       | (3,785 | ) |   | $ | (4,480 | ) |   |   | (15.5 | )% |   | $ | (4,480 | ) |   | $ | (7,217 | ) |   |   | (37,9 | )% |

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| (US$      000’s)                               |   | December      31, 2008 |      |   | December      31, 2007 |   |      | Movement |   |
|------------------------------------------------------|--------|------------------------|-----------|--------|------------------------|--------|-----------|----------|--------|
| Current      assets                                  |   | $                      | 495,395   |   |                   | $      | 535,092   |     |   |   | (7.4 | )% |
| Non-current      assets                              |   |                   | 1,913,338 |   |                   |   | 1,803,343 |     |   |   | 6.1 | % |
| Current      liabilities                             |   |                   | 228,673   |   |                   |   | 234,470   |     |   |   | (2.5 | )% |
| Non-current      liabilities                         |   |                   | 1,175,694 |   |                   |   | 681,003   |     |   |   | 72.6 | % |
| Minority      interests in consolidated subsidiaries |   |                   | 3,187     |   |                   |   | 23,155    |     |   |   | (86.2 | )% |
| Shareholders’      equity                      |   | $                      | 1,001,179 |   |                   | $      | 1,399,807 |     |   |   | (28.5 | )% |

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| (US$      000’s)                                                        |   | For      the Years Ended December 31, |     |
|-------------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                          |   | 2008                                  |     |   | 2007 |   |   | 2006 |   |
| Net      cash generated from continuing operating activities                  |   | $                                     | 135,555  |   |   | $ | 106,695 |   |   | $ | 75,370 |   |
| Net      cash used in continuing investing activities                         |   |                                  | (588,798 | ) |   |   | (235,898 | ) |   |   | (126,955 | ) |
| Net      cash received from financing activities                              |   |                                  | 444,558  |   |   |   | 135,530 |   |   |   | 130,700 |   |
| Net      cash used in discontinued operations-operating activities            |   |                                  | (4,920   | ) |   |   | (6,001 | ) |   |   | (3,667 | ) |
| Net      cash used in discontinued operations-investing activities            |   |                                  | (495     | ) |   |   | (1,520 | ) |   |   | - |   |
| Net      cash received from discontinued operations-financing      activities |   |                                  | -        |   |   |   | - |   |   |   | 1,700 |   |
| Impact      of exchange rate fluctuations on cash                             |   |                                  | (21,279  | ) |   |   | (1,896 | ) |   |   | (2,904 | ) |
| Net      (decrease) / increase  in cash and cash    equivalents     |   | $                                     | (35,379  | ) |   | $ | (3,090 | ) |   | $ | 74,244 |   |

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| · | payment      of US$ 223.2 million in connection with our acquisition of an additional      30.0% stake in the Studio 1+1 group including acquisition costs (for      further information, see Item 1, Note 3, “Acquisitions and Disposals:      Ukraine (STUDIO 1+1)”); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payment      of US$ 109.3 million in connection with our acquisition of an additional      10.0% stake in the Studio 1+1 group including acquisition costs (for      further information, see Item 1, Note 3, “Acquisitions and Disposals:      Ukraine (STUDIO 1+1)”); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | total      payments of US$ 147.8 million in connection with our acquisition of      Bulgarian operations, including acquisition costs (for further      information, see Item 1, Note 3, “Acquisitions and Disposals:      Bulgaria”); |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of RON 47.2 million (approximately US$ 20.6 million at the date of      payment) in connection with our acquisition of the assets of Radio Pro      (for further information, see Item 1, Note 3, “Acquisitions and Disposals:      Romania”); |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of US$ 9.9 million in connection with our acquisition of Jyxo and Blog      (for further information, see Item 1, Note 3, “Acquisitions and Disposals:      Czech Republic”); and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | capital      expenditures of US$ 78.7 million, largely in respect of the expansion      of our broadcasting facilities and equipment in the Czech Republic,      Romania and the Slovak Republic. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | capital      expenditure of US$ 79.9 million largely in respect of the expansion      of our broadcasting facilities and equipment in the Czech Republic and      Romania; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of SKK 1.9 billion (approximately US$ 78.5 million) in connection with our      acquisition of a 20% interest in our Slovak Republic operations (see Item      8, Note 3, “Acquisitions and Disposals: Slovak  Republic“); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of US$ 51.6 million in connection with our acquisition of an additional 5%      interest in our Romania operations and a 20% stake in our Romanian      production company (see Item 8, Note 3 “Acquisitions and Disposals:      Romania”); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of EUR 9.4 million (approximately US$ 13.9 million) in connection with our      acquisition of 100% interest in MTS (see Item 8, Note 3, “Acquisitions and      Disposals: Romania”); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of EUR 6.7 million (approximately US$ 8.4 million) in connection with our      acquisition of Sport.ro (see Item 8, Note 3, “Acquisitions and Disposals:      Romania); and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | payments      of US$ 3.1 million in connection with our acquisition of a 60.4% interest      in each of Tor and Zhysa (see Item 8, Note 3 “Acquisitions and Disposals:      Ukraine”). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | capital      expenditure of US$ 60.4 million, largely in respect of the expansion of      our broadcasting facilities and equipment in Romania and the Czech      Republic; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a      payment of US$ 30.1 million in connection with our acquisition of ARJ      a.s. (“ARJ”); |
|--------|-------------------------------------------------------------------------------------------------------------|

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| · | a      payment of US$ 27.2 million in connection with our acquisition of an      additional 5% interest in our Romania  operations; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | a      payment of EUR 8.0 million (approximately US$ 10.3 million) in connection      with our acquisition of our stake in Media Pro (see Item 8, Note 5,      “Investments”); and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a      payment of a further US$ 2.0 million following completion of our      acquisition of a 65.5% stake inUkrpromtorg. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

| · | receipt      of approximately US$ 168.7 million (net of fees) from a public offering of      2,530,000 shares of our Class A CommonStock; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| · | receipts      of US$ 35.0 million from drawing on credit facilities in the Czech      Republic and Slovenia, largely to finance the acquisition of ARJ and the      increased investment in our Romania operations;  and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | repayment      of US$ 75.3 million of amounts drawn under the same credit      facilities. |
|--------|--------------------------------------------------------------------------------------------|

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|                      |   |   |   |                 | December      31, 2008 (US$      000’s) |   |
|---------------------------|--------|--------|--------|----------------------|----------------------------------------------------|--------|
| Corporate                 |   |   |   | (1)      – (4) |                                               |   | 1,081,901 |   |
| Czech      Republic       |   |   |   | (5)      – (7) |                                               |   | 12,923 |   |
| Romania                   |   |   |   | (8)                  |                                               |   | 104 |   |
| Slovak      Republic      |   |   |   | (9)                  |                                               |   | - |   |
| Slovenia                  |   |   |   | (10)                 |                                               |   | - |   |
| Ukraine      (STUDIO 1+1) |   |   |   | (11)                 |                                               |   | 172 |   |
| Total                     |   |   |   |                 |                                               |   | 1,095,100 |   |

| (1) | As      at December 31, 2008 we had EUR 395.0 million (approximately US$ 549.7      million) of Senior Notes outstanding, comprising EUR 245.0 million      (approximately US$ 341.0 million) of the 2005 Senior Notes and EUR 150.0      million (approximately US$ 208.7 million) of the 2007 Senior Notes, which      bear interest at six-month Euro Inter-Bank Offered Rate (“EURIBOR”) plus      1.625%. The applicable rate at December 31, 2008 was      5.934%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | As      at December 31, 2008 we had US$ 475.0 million of Convertible Notes      outstanding that mature on March 15, 2013.  Interest is payable      semi-annually in arrears on each March 15 and September  15. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On      July 21, 2006, we entered into a five-year revolving loan agreement for      EUR 100.0 million (approximately US$ 139.2 million) arranged by EBRD and      on August 22, 2007, we entered into a second revolving loan agreement for      EUR 50.0 million (approximately US$ 69.6 million) also arranged by EBRD      (collectively the “EBRD Loan”). ING Bank N.V. (“ING”) and Ceska      Sporitelna, a.s. (“CS”) are each participating in the EBRD Loan for EUR      37.5 million.  The EBRD Loan bears interest at a rate of      three-month EURIBOR plus 1.625% on the drawn amount. A commitment charge      of 0.8125% is payable on any undrawn portion of the EBRD Loan. The      available amount of the EBRD Loan amortizes by 15% every six months from      May 2009 to November 2010 and by 40% in May 2011. On October 15 and 24,      2008 we drew down EUR 50.0 million (US$ 69.6 million) and EUR 100.0      million (US$ 139.2 million), respectively, to fund the purchase of the      remaining 10.0% interest in the Studio 1+1 group and for general corporate      purposes. We repaid EUR 75.0 million in November 2008. As at December 31,      2008, EUR 25.0 million (approximately US$ 34.8 million) was drawn. A      further EUR 125.0 million (approximately US$ 174.0 million) was drawn on      February 2, 2009. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | We      have an uncommitted multicurrency overdraft facility for EUR 10.0 million      (approximately US$ 13.9 million) from Bank Mendes Gans (“BMG”), a      subsidiary of ING. As at December 31, 2008, the facility was undrawn.      Interest is payable at the prevailing money market rate plus 2.00% on the      drawn amount. This facility is part of a cash pooling arrangement with BMG      (the “BMG cash pool”). The cash pooling arrangement enables us to receive      credit across the group in respect of cash balances which our subsidiaries      in the Netherlands, Bulgaria, the Czech Republic, Romania, the Slovak      Republic, Slovenia and Ukraine deposit with BMG. Cash deposited with BMG      by our participating subsidiaries is pledged as security against the      drawings of other subsidiaries up to the amount deposited. As at December      31, 2008, our Dutch holding company, CME Media Enterprises B.V. (“CME      B.V.”), had EUR 8.4 million (approximately US$ 11.7 million) deposited in      the BMG cash pool and had drawn an overdraft of US$ 22.4 million from the      BMG cash pool.  Our operations in the Czech Republic, the Slovak      Republic and Slovenia had deposited CZK 154.9 million (approximately US$      8.0 million), SKK 125.5 million (approximately US$ 5.8 million) and EUR      2.0 million (approximately US$ 2.8 million), respectively in the BMG cash      pool.  As stated in Note (8) our Romania operations had drawn      US$0.1 million from the BMG cash pool at December 31, 2008. In addition,      as stated in Note (11), our Ukraine (STUDIO 1+1) operations had drawn EUR      0.1 million (approximately US$ 0.2 million) from the BMG cash pool at      December 31, 2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5) | CET      21 has a credit facility of CZK 1.2 billion (approximately US$ 62.0      million) with CS.  The final repayment date is December 31,      2010.  This facility may, at the option of CET 21, be drawn in      CZK, US$ or EUR and bears interest at the three-month, six-month or      twelve-month London Inter-Bank Offered Rate (“LIBOR”), EURIBOR or Prague      Inter-Bank Offered Rate (“PRIBOR”) plus 1.65%. A utilization interest of      0.25% is payable on the undrawn portion of this facility.  This      percentage decreases to 0.125% of the undrawn portion if more than 50% of      the loan is drawn. This facility is secured by a pledge of receivables,      which are also subject to a factoring arrangement with Factoring Ceska      Sporitelna, a.s.(“FCS”), a subsidiary of CS. On February 19, 2009, the      full CZK 1.2 billion (approximately US$ 53.1 million at the date of      drawing) of this facility wasdrawn. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | CET      21 has a working capital credit facility of CZK 250.0 million      (approximately US$ 12.9 million) with CS, which matures on December 31,      2010.  This working capital facility bears interest at the      three-month PRIBOR rate plus 1.65%. The applicable rate at December 31,      2008 was 5.28% .This facility is secured by a pledge of receivables, which      are also subject to a factoring arrangement with CS.  As at      December 31, 2008, the full CZK 250.0 million (approximately US$ 12.9      million) was drawn under thisfacility. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | As      at December 31, 2008, there were no drawings under a CZK 300.0 million      (approximately US$ 15.5 million) factoring facility with      CS.  This facility is available until June 30, 2011 and bears      interest at the rate of one-month PRIBOR plus 1.40% for the period that      actively assigned accounts receivable are  outstanding. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | As      stated in Note (4), our Romania operations had drawn US$ 0.1 million from      the BMG cash pool at December 31,2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (9) | On      May 15, 2008, our Slovak Republic operations secured a SKK 100.0 million      (US$ 4.6 million) overdraft facility from ING.  This can be      utilized for short term advances up to six months at an interest rate of      EURIBOR + 2%.  At December 31, 2008 there were no drawings under      this facility. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | In      July 2005 Pro Plus entered into a revolving five-year facility agreement      for up to EUR 37.5 million (approximately US$ 52.2 million) in aggregate      principal amount with ING Bank N.V., Nova Ljubljanska Banka d.d.,      Ljubljana and Bank Austria Creditanstalt d.d., Ljubljana.  The      facility availability amortizes by 10.0% each year for four years      commencing one year after signing, with 60.0% repayable after five      years.  This facility is secured by a pledge of the bank      accounts of Pro Plus, the assignment of certain receivables, a pledge of      our interest in Pro Plus and a guarantee of our wholly-owned subsidiary      CME B.V.  Loans drawn under this facility will bear interest at      a rate of EURIBOR for the period of drawing plus a margin of between 2.10%      and 3.60% that varies according to the ratio of consolidated net debt to      consolidated broadcasting cash flow for Pro Plus.  As at      December 31, 2008, EUR 26.3 million (approximately US$ 36.5 million) was      available for drawing under this revolving facility. On February 19, 2009,      the full EUR 36.5 million (approximately US$ 33.6 million at the date      of drawing) of this facility wasdrawn. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | As      stated in note (4), our Ukraine (STUDIO 1+1) operations had drawn EUR 0.1      million (approximately US$ 0.2 million) from the BMG cash pool at December      31, 2008. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Contractual      Obligations             |   | Payments      due by period (US$ 000’s) |      |
|------------------------------------------|--------|-----------------------------------------------|-----------|
|                                     |   | Total                                         |      |   | Less      than 1 year |   |   | 1-3      years |   |   | 3-5      years |   |   | More      than 5 years |   |
| Long-Term      Debt – principal    |   | $                                             | 1,095,100 |   |   | $ | 35,587 |   |   | $ | 34,792 |   |   | $ | 815,966 |   |   | $ | 208,755 |   |
| Long-Term      Debt – interest (1) |   |                                          | 252,417   |   |   |   | 70,211 |   |   |   | 117,386 |   |   |   | 59,142 |   |   |   | 5,678 |   |
| Capital      Lease Obligations           |   |                                          | 6,296     |   |   |   | 1,146 |   |   |   | 1,315 |   |   |   | 1,146 |   |   |   | 2,689 |   |
| Operating      Leases                    |   |                                          | 18,552    |   |   |   | 6,514 |   |   |   | 5,777 |   |   |   | 2,294 |   |   |   | 3,967 |   |
| Unconditional      Purchase Obligations  |   |                                          | 294,582   |   |   |   | 226,449 |   |   |   | 58,123 |   |   |   | 9,413 |   |   |   | 597 |   |
| Other      Obligations (2)               |   |                                          | 24,046    |   |   |   | 24,046 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Deferred      consideration              |   |                                          | 6,620     |   |   |   | 5,224 |   |   |   | 1,396 |   |   |   | - |   |   |   | - |   |
| FIN      48 Obligations                  |   |                                          | 1,799     |   |   |   | 421 |   |   |   | 1,378 |   |   |   | - |   |   |   | - |   |
| Total      Contractual Obligations       |   | $                                             | 1,699,412 |   |   | $ | 369,598 |   |   | $ | 220,167 |   |   | $ | 887,961 |   |   | $ | 221,686 |   |

| (1) | Interest      obligations on variable rate debt are calculated using the rate applicable      at the balance sheet date. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      US$ 10.0 million to acquire the remaining non-controlling interests in our      KINO channel and  US$ 12.0 million for a 10.0% interest in      Glavred-Media LLC. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Measurement                                            | Valuation      Method               |
|--------------------------------------------------------|-------------------------------------|
| Recoverability      of cash flows                      | Undiscounted      future cash flows |
| Fair      value of indefinite-lived broadcast licenses | Build-out      method               |
| Fair      value of indefinite-lived trademarks         | Relief      from royalty method     |
| Fair      value of reporting units                     | Discounted      cash flow model     |

| 10%      Adverse Change in        | Long-Lived      Assets | Indefinite-Lived      Trademarks | Indefinite-Lived      Broadcast Licenses | Goodwill |
|-----------------------------------|------------------------|----------------------------------|------------------------------------------|----------|
| Cost      of Capital              | None                   | Ukraine      (STUDIO 1+1)        | Romania,      Slovenia                   | None     |
|                              |                   |                             |                                     |     |
| Total      Advertising Market     | Bulgaria               | Ukraine      (STUDIO 1+1)        | Slovenia                                 | Croatia  |
|                              |                   |                             |                                     |     |
| Market      Share                 | Bulgaria               | Ukraine      (STUDIO 1+1)        | Slovenia                                 | Croatia  |
|                              |                   |                             |                                     |     |
| Forecast      operating costs     | Bulgaria               | Not      applicable              | Romania,      Slovenia                   | Croatia  |
|                              |                   |                             |                                     |     |
| Forecast      capital expenditure | None                   | Not      applicable              | None                                     | None     |
|                              |                   |                             |                                     |     |
| Perpetuity      Growth rate       | Not      applicable    | Ukraine      (STUDIO 1+1)        | None                                     | None     |

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|                                      |   | For      the Year Ended December 31, 2008 |   |
|-------------------------------------------|--------|-------------------------------------------|--------|
| US$  millions                   |   | As      reported                          |   |   | Impact      of Adoption |   |   | As      Adjusted |   |
| Consolidated      Statement of Operations |   |
| Interest      expense                     |   |                                      | (68.5  | ) |   |   | (14.0 | ) |   |   | (82.5 | ) |

|                                           |   | As      at December 31, 2008 |     |
|------------------------------------------------|--------|------------------------------|----------|
| US$  millions                        |   | As      reported             |     |   | Impact      of Adoption |   |   | As      Adjusted |   |
| Consolidated      Balance Sheet                |   |                         |     |   |   |   |   |   |   |
| Other      current assets                      |   |                         | 98.7     |   |   |   | (0.6 | ) |   |   | 98.1 |   |
| Other      non-current assets                  |   |                         | 20.7     |   |   |   | (1.5 | ) |   |   | 19.2 |   |
| Senior      Debt                               |   |                         | (1,024.7 | ) |   |   | 96.2 |   |   |   | (928.5 | ) |
| Additional      paid-in capital                |   |                         | 1,018.5  |   |   |   | 108.1 |   |   |   | 1,126.6 |   |
| (Accumulated      deficit) / Retained Earnings |   |                         | (224.1   | ) |   |   | (14.0 | ) |   |   | (238.1 | ) |

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|                                  |   | Expected      Maturity Dates |    |
|---------------------------------------|--------|------------------------------|---------|
|                                  |   | 2009                         |    |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | Thereafter |   |
|                                  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt in Euro (000’s) |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed      Rate                       |   |                         | -       |   |   |   | - |   |   |   | - |   |   |   | 245,000 |   |   |   | - |   |   |   | - |   |
| Average      Interest Rate            |   |                         | -       |   |   |   | - |   |   |   | - |   |   |   | 8.25 | % |   |   | - |   |   |   | - |   |
| Variable      Rate                    |   |                         | -       |   |   |   | - |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | 150,000 |   |
| Average      Interest Rate            |   |                         | -       |   |   |   | - |   |   |   | 6.56 | % |   |   | - |   |   |   | - |   |   |   | 5.93 | % |
|                                  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt in US$ (000’s)  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed      Rate                       |   |                         | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 475,000 |   |   |   | - |   |
| Average      Interest Rate            |   |                         | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3.50 | % |   |   | - |   |
|                                  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt in CZK (000’s)  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable      Rate                    |   |                         | 250,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Average      Interest Rate            |   |                         | 5,28    | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

|                                                         |   |                                               |   |   |                                              |   |   | Yearly      interest charge if interest rates increase by(US$      000s): |   |
|--------------------------------------------------------------|--------|----------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|
| Value      of Debt as at December 31, 2008 (US$ 000’s) |   | Interest      Rateas      atDecember      31, 2008 |   |   | Yearly      Interest Charge(US$      000’s) |   |   |                                                                      | 1      | % |   |   | 2 | % |   |   | 3 | % |   |   | 4 | % |   |   | 5 | % |
| $ 243,547                                               |   |                                               | 6.02   | %      |                                              | $      | 14,671 |                                                                      |   | $ | 17,106 |   |   | $ | 19,542 |   |   | $ | 21,977 |   |   | $ | 24,412 |   |   | $ | 26,847 |   |
| (EUR      175.0 million)                                     |   |                                               |   |   |                                              |   |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $ 12,923                                                |   |                                               | 5.28   | %      |                                              |   | 682    |                                                                      |   |   | 812 |   |   |   | 941 |   |   |   | 1,070 |   |   |   | 1,199 |   |   |   | 1,328 |   |
| (CZK      250.0 million)                                     |   |                                               |   |   |                                              |   |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                        |   |                                               |   |   |                                              | $      | 15,353 |                                                                      |   | $ | 17,918 |   |   | $ | 20,483 |   |   | $ | 23,047 |   |   | $ | 25,611 |   |   | $ | 28,175 |   |

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|                                                              |   |                  |      |   |                   |   |
|-------------------------------------------------------------------|--------|-----------------------|-----------|--------|------------------------|--------|
|                                                              |   | December      31,2008 |      |   | December      31, 2007 |   |
| ASSETS                                                            |   |                  |      |   |                   |   |
| Current      assets                                               |   |                  |      |   |                   |   |
| Cash      and cash equivalents                                    |   | $                     | 107,433   |   |                   | $      | 142,812 |   |
| Accounts      receivable (net of allowance) (Note 7)              |   |                  | 221,450   |   |                   |   | 224,713 |   |
| Program      rights, net                                          |   |                  | 67,787    |   |                   |   | 77,112 |   |
| Other      current assets (Note 8)                                |   |                  | 98,725    |   |                   |   | 90,455 |   |
| Total      current assets                                         |   |                  | 495,395   |   |                   |   | 535,092 |   |
| Non-current      assets                                           |   |                  |      |   |                   |   |   |   |
| Investments      (Note 5)                                         |   |                  | 16,559    |   |                   |   | 16,559 |   |
| Property,      plant and equipment, net (Note 9)                  |   |                  | 206,667   |   |                   |   | 175,308 |   |
| Program      rights, net                                          |   |                  | 113,596   |   |                   |   | 108,362 |   |
| Goodwill      (Note 4)                                            |   |                  | 1,041,041 |   |                   |   | 1,114,347 |   |
| Broadcast      licenses and other intangible assets, net (Note 4) |   |                  | 514,732   |   |                   |   | 373,422 |   |
| Other      non-current assets (Note 8)                            |   |                  | 20,743    |   |                   |   | 15,345 |   |
| Total      non-current assets                                     |   |                  | 1,913,338 |   |                   |   | 1,803,343 |   |
| Total      assets                                                 |   | $                     | 2,408,733 |   |                   | $      | 2,338,435 |   |

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|                                                                                                     |   |                  |      |   |                   |   |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|--------|------------------------|--------|
|                                                                                                     |   | December      31,2008 |      |   | December      31, 2007 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                          |   |                  |      |   |                   |   |
| Current      liabilities                                                                                 |   |                  |      |   |                   |   |
| Accounts      payable and accrued liabilities (Note 10)                                                  |   | $                     | 174,885   |   |                   | $      | 203,313 |   |
| Credit      facilities and obligations under capital leases (Note 11)                                    |   |                  | 36,502    |   |                   |   | 15,090 |   |
| Other      current liabilities (Note 12)                                                                 |   |                  | 17,286    |   |                   |   | 16,067 |   |
| Total      current liabilities                                                                           |   |                  | 228,673   |   |                   |   | 234,470 |   |
| Non-current      liabilities                                                                             |   |                  |      |   |                   |   |   |   |
| Credit      facilities and obligations under capital leases (Note 11)                                    |   |                  | 38,758    |   |                   |   | 4,162 |   |
| Senior      Debt (Note 6)                                                                                |   |                  | 1,024,721 |   |                   |   | 581,479 |   |
| Other      non-current liabilities (Note 12)                                                             |   |                  | 112,215   |   |                   |   | 95,362 |   |
| Total      non-current liabilities                                                                       |   |                  | 1,175,694 |   |                   |   | 681,003 |   |
| Commitments      and contingencies (Note 21)                                                             |   |                  |      |   |                   |   |   |   |
| Minority      interests in consolidated subsidiaries                                                     |   |                  | 3,187     |   |                   |   | 23,155 |   |
| SHAREHOLDERS'      EQUITY:                                                                               |   |                  |      |   |                   |   |   |   |
| Nil      shares of Preferred Stock of $0.08 each (December 31, 2007 –      nil)                    |   |                  | -         |   |                   |   | - |   |
| 36,024,273      shares of Class A Common Stock of $0.08 each (December 31, 2007 –      36,003,198) |   |                  | 2,882     |   |                   |   | 2,880 |   |
| 6,312,839      shares of Class B Common Stock of $0.08 each (December 31, 2007 –      6,312,839)   |   |                  | 505       |   |                   |   | 505 |   |
| Additional      paid-in capital                                                                          |   |                  | 1,018,532 |   |                   |   | 1,051,336 |   |
| (Accumulated      deficit) / Retained earnings                                                           |   |                  | (224,086  | )      |                   |   | 53,619 |   |
| Accumulated      other comprehensive income                                                              |   |                  | 203,346   |   |                   |   | 291,467 |   |
| Total      shareholders’ equity                                                                    |   |                  | 1,001,179 |   |                   |   | 1,399,807 |   |
| Total      liabilities and shareholders’ equity                                                    |   | $                     | 2,408,733 |   |                   | $      | 2,338,435 |   |

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|                                                                                                                                                              |   | For      the Years Ended December 31, |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                                                                                                              |   | 2008                                  |      |   | 2007 |   |   | 2006 |   |
| Net      revenues                                                                                                                                                 |   | $                                     | 1,019,934 |   |   | $ | 838,856 |   |   | $ | 602,646 |   |
| Operating      costs                                                                                                                                              |   |                                  | 145,210   |   |   |   | 116,859 |   |   |   | 89,486 |   |
| Cost      of programming                                                                                                                                          |   |                                  | 438,203   |   |   |   | 327,230 |   |   |   | 226,133 |   |
| Depreciation      of station property, plant & equipment                                                                                                      |   |                                  | 51,668    |   |   |   | 32,653 |   |   |   | 25,430 |   |
| Amortization      of broadcast licenses and other intangibles (Note 4)                                                                                            |   |                                  | 35,381    |   |   |   | 24,970 |   |   |   | 18,799 |   |
| Cost      of revenues                                                                                                                                             |   |                                  | 670,462   |   |   |   | 501,712 |   |   |   | 359,848 |   |
| Station      selling, general and administrative expenses                                                                                                         |   |                                  | 90,841    |   |   |   | 71,315 |   |   |   | 64,975 |   |
| Corporate      operating costs                                                                                                                                    |   |                                  | 49,676    |   |   |   | 55,373 |   |   |   | 34,104 |   |
| Impairment      charge (Note 4)                                                                                                                                   |   |                                  | 336,752   |   |   |   | - |   |   |   | 748 |   |
| Operating      (loss) / income                                                                                                                                    |   |                                  | (127,797  | ) |   |   | 210,456 |   |   |   | 142,971 |   |
| Interest      income                                                                                                                                              |   |                                  | 10,006    |   |   |   | 5,728 |   |   |   | 6,359 |   |
| Interest      expense (Note 16)                                                                                                                                   |   |                                  | (68,475   | ) |   |   | (54,936 | ) |   |   | (44,212 | ) |
| Foreign      currency exchange loss, net                                                                                                                          |   |                                  | (37,877   | ) |   |   | (34,409 | ) |   |   | (44,892 | ) |
| Change      in fair value of derivatives (Note 13)                                                                                                                |   |                                  | 6,360     |   |   |   | (3,703 | ) |   |   | (12,539 | ) |
| Other      income                                                                                                                                                 |   |                                  | 2,620     |   |   |   | 7,891 |   |   |   | 3,059 |   |
| (Loss)      / income before provision for income taxes, minority interest, equity      in loss of unconsolidated affiliates and discontinued      operations |   |                                  | (215,163  | ) |   |   | 131,027 |   |   |   | 50,746 |   |
| Provision      for income taxes (Note 15)                                                                                                                         |   |                                  | (34,525   | ) |   |   | (20,822 | ) |   |   | (14,952 | ) |
| (Loss)      / income before minority interest, equity in loss of unconsolidated      affiliates and discontinued operations                                  |   |                                  | (249,688  | ) |   |   | 110,205 |   |   |   | 35,794 |   |
| Minority      interest in income of consolidated subsidiaries                                                                                                     |   |                                  | (2,071    | ) |   |   | (17,157 | ) |   |   | (13,602 | ) |
| Equity      in loss of unconsolidated affiliates (Note 5)                                                                                                         |   |                                  | -         |   |   |   | - |   |   |   | (730 | ) |
| Gain      on sale of unconsolidated affiliate (Note 5)                                                                                                            |   |                                  | -         |   |   |   | - |   |   |   | 6,179 |   |
| Net      (loss) / income  from continuing operations                                                                                                         |   |                                  | (251,759  | ) |   |   | 93,048 |   |   |   | 27,641 |   |
| Discontinued      operations (Note 20):                                                                                                                           |   |                                  |      |   |   |   |   |   |   |   |   |   |
| Pre-tax      loss of discontinued operations - Ukraine (KINO, CITI)                                                                                               |   |                                  | (3,849    | ) |   |   | (4,509 | ) |   |   | (2,354 | ) |
| Tax      of discontinued operations - Ukraine (KINO, CITI)                                                                                                        |   |                                  | 64        |   |   |   | 29 |   |   |   | - |   |
| Tax      on disposal of discontinued operations -    Czech Republic                                                                                          |   |                                  | -         |   |   |   | - |   |   |   | (4,863 | ) |
| Net      loss  from discontinued operations                                                                                                             |   |                                  | (3,785    | ) |   |   | (4,480 | ) |   |   | (7,217 | ) |
| Net      (loss) / income                                                                                                                                          |   | $                                     | (255,544  | ) |   | $ | 88,568 |   |   | $ | 20,424 |   |
|                                                                                                                                                              |   |                                  |      |   |   |   |   |   |   |   |   |   |
| Currency      translation adjustment, net                                                                                                                         |   |                                  | (88,609   | ) |   |   | 158,825 |   |   |   | 157,524 |   |
| Obligation      to repurchase shares                                                                                                                              |   |                                  | 488       |   |   |   | (488 | ) |   |   | - |   |
| Total      comprehensive (loss) / income                                                                                                                          |   | $                                     | (343,665  | ) |   | $ | 246,905 |   |   | $ | 177,948 |   |

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|                                                                                        |   | For      the Years Ended December 31, |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                        |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                                                        |   |                                  |   |   |   |   |   |   |   |
| PER      SHARE DATA (Note 18):                                                              |   |                                  |   |   |   |   |   |   |   |
| Net      (loss) / income per share:                                                         |   |                                  |   |   |   |   |   |   |   |
| Continuing      operations – Basic                                                    |   | $                                     | (5.95  | ) |   | $ | 2.25 |   |   | $ | 0.69 |   |
| Continuing      operations – Diluted                                                  |   |                                  | (5.95  | ) |   |   | 2.23 |   |   |   | 0.68 |   |
| Discontinued      operations – Basic                                                  |   |                                  | (0.09  | ) |   |   | (0.11 | ) |   |   | (0.18 | ) |
| Discontinued      operations – Diluted                                                |   |                                  | (0.09  | ) |   |   | (0.11 | ) |   |   | (0.18 | ) |
| Net      income – Basic                                                               |   |                                  | (6.04  | ) |   |   | 2.14 |   |   |   | 0.51 |   |
| Net      income – Diluted                                                             |   | $                                     | (6.04  | ) |   | $ | 2.12 |   |   | $ | 0.50 |   |
|                                                                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common shares used in computing per share amounts      (000’s): |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                       |   |                                  | 42,328 |   |   |   | 41,384 |   |   |   | 40,027 |   |
| Diluted                                                                                     |   |                                  | 42,328 |   |   |   | 41,833 |   |   |   | 40,600 |   |

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|                                                |   | Class      A Common Stock |       |   | Class      B Common Stock |   |   |                  |   |   |           |   |   |                            |   |   |                                           |   |
|-----------------------------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|--------|-----------------------|--------|--------|----------------|--------|--------|---------------------------------|--------|--------|------------------------------------------------|--------|
|                                                |   | Number      of shares     |       |   | Par      value            |   |   | Number      of shares |   |   | Par      value |   |   | Additional      Paid-In Capital |   |   | Retained      Earnings / (Accumulated Deficit) |   |   | Accumulated      Other Comprehensive Income/(Loss) |   |   | Total      Shareholders' Equity |   |
| BALANCE,      January 1, 2006                       |   |                      | 31,032,994 |   |                      | $      | 2,482  |                  |   |   | 6,966,533      |   |   | $                               | 558    |   |                                           | $      | 754,061 |   |   | $ | (52,154 | ) |   | $ | (24,394 | ) |   | $ | 680,553 |   |
| Stock-based      Compensation                       |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 4,898 |   |   |   | - |   |   |   | - |   |   |   | 4,898 |   |
| Shares      issued, net of fees                     |   |                      | 2,530,000  |   |                      |   | 202    |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 168,452 |   |   |   | - |   |   |   | - |   |   |   | 168,654 |   |
| Stock      options exercised                        |   |                      | 95,450     |   |                      |   | 8      |                  |   |   | 100,000        |   |   |                            | 8      |   |                                           |   | 3,697 |   |   |   | - |   |   |   | - |   |   |   | 3,713 |   |
| Conversion      of Class B to Class A Common Stock  |   |                      | 753,694    |   |                      |   | 61     |                  |   |   | (753,694       | )      |   |                            | (61    | )      |                                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net      income                                     |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | 20,424 |   |   |   | - |   |   |   | 20,424 |   |
| Currency      translation adjustment                |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | - |   |   |   | 157,524 |   |   |   | 157,524 |   |
| BALANCE,      December 31, 2006                     |   |                      | 34,412,138 |   |                      | $      | 2,753  |                  |   |   | 6,312,839      |   |   | $                               | 505    |   |                                           | $      | 931,108 |   |   | $ | (31,730 | ) |   | $ | 133,130 |   |   | $ | 1,035,766 |   |
| Impact      of adoption of FIN 48                   |   |                      |       |   |                      |   |   |                  |   |   |           |   |   |                            |   |   |                                           |   |   |   |   |   | (3,219 | ) |   |   |   |   |   |   | (3,219 | ) |
| Stock-based      compensation                       |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 6,402 |   |   |   | - |   |   |   | - |   |   |   | 6,402 |   |
| Shares      issued, net of fees                     |   |                      | 1,275,227  |   |                      |   | 102    |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 109,751 |   |   |   | - |   |   |   | - |   |   |   | 109,853 |   |
| Stock      options exercised                        |   |                      | 315,833    |   |                      |   | 25     |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 4,075 |   |   |   | - |   |   |   | - |   |   |   | 4,100 |   |
| Net      income                                     |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | 88,568 |   |   |   | - |   |   |   | 88,568 |   |
| Currency      translation adjustment                |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | - |   |   |   | 158,825 |   |   |   | 158,825 |   |
| Obligation      to repurchase shares                |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | - |   |   |   | (488 | ) |   |   | (488 | ) |
| BALANCE,      December 31, 2007                     |   |                      | 36,003,198 |   |                      | $      | 2,880  |                  |   |   | 6,312,839      |   |   | $                               | 505    |   |                                           | $      | 1,051,336 |   |   | $ | 53,619 |   |   | $ | 291,467 |   |   | $ | 1,399,807 |   |
| Stock-based      compensation                       |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 7,133 |   |   |   | - |   |   |   | - |   |   |   | 7,133 |   |
| Stock      options exercised                        |   |                      | 21,075     |   |                      |   | 2      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 1,220 |   |   |   | - |   |   |   | - |   |   |   | 1,222 |   |
| Purchase      of capped call options (Note 5)       |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | (63,318 | ) |   |   | - |   |   |   | - |   |   |   | (63,318 | ) |
| Extinguishment      of capped call options (Note 5) |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | 22,161 |   |   |   | (22,161 | ) |   |   | - |   |   |   | - |   |
| Net      loss                                       |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | (255,544 | ) |   |   | - |   |   |   | (255,544 | ) |
| Currency      translation adjustment                |   |                      |       |   |                      |   |   |                  |   |   |           |   |   |                            |   |   |                                           |   |   |   |   |   |   |   |   |   | (88,609 | ) |   |   | (88,609 | ) |
| Obligation      to repurchase shares                |   |                      | -          |   |                      |   | -      |                  |   |   | -              |   |   |                            | -      |   |                                           |   | - |   |   |   | - |   |   |   | 488 |   |   |   | 488 |   |
| BALANCE,      December 31, 2008                     |   |                      | 36,024,273 |   |                      | $      | 2,882  |                  |   |   | 6,312,839      |   |   | $                               | 505    |   |                                           | $      | 1,018,532 |   |   | $ | (224,086 | ) |   | $ | 203,346 |   |   | $ | 1,001,179 |   |

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|                                                                                                          |   | For      the Years Ended December 31, |     |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                                                          |   | 2008                                  |     |   | 2007 |   |   | 2006 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                    |   |                                  |     |   |   |   |   |   |   |
| Net      (loss) / income                                                                                      |   | $                                     | (255,544 | ) |   | $ | 88,568 |   |   | $ | 20,424 |   |
| Adjustments      to reconcile net (loss) / income to net cash generated from       operating activities: |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations (Note 20)                                                              |   |                                  | 3,785    |   |   |   | 4,480 |   |   |   | 7,217 |   |
| Equity      in loss of unconsolidated affiliates, net of dividends      received                              |   |                                  | -        |   |   |   | - |   |   |   | 730 |   |
| Gain      on sale of unconsolidated affiliate (Note 5)                                                        |   |                                  | -        |   |   |   | - |   |   |   | (6,179 | ) |
| Depreciation      and amortization                                                                            |   |                                  | 336,358  |   |   |   | 254,463 |   |   |   | 164,100 |   |
| Impairment      charge (Note 4)                                                                               |   |                                  | 336,752  |   |   |   | - |   |   |   | 748 |   |
| Loss      on disposal of fixed assets                                                                         |   |                                  | 51       |   |   |   | - |   |   |   | 1,292 |   |
| Stock-based      compensation (Note 17)                                                                       |   |                                  | 6,107    |   |   |   | 5,734 |   |   |   | 3,575 |   |
| Minority      interest in income of consolidated subsidiaries                                                 |   |                                  | 2,072    |   |   |   | 17,157 |   |   |   | 13,602 |   |
| Change      in fair value of derivative instruments (Note 13)                                                 |   |                                  | (6,360   | ) |   |   | 3,703 |   |   |   | 12,539 |   |
| Foreign      currency exchange loss, net                                                                      |   |                                  | 37,877   |   |   |   | 34,441 |   |   |   | 44,908 |   |
| Net      change in (net of effects of acquisitions and disposals of      businesses):                         |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                      |   |                                  | (13,654  | ) |   |   | (57,449 | ) |   |   | (42,125 | ) |
| Program      rights                                                                                           |   |                                  | (251,462 | ) |   |   | (255,147 | ) |   |   | (173,345 | ) |
| Other      assets                                                                                             |   |                                  | (3,638   | ) |   |   | (4,192 | ) |   |   | (6,033 | ) |
| Other      accounts payable and accrued liabilities                                                           |   |                                  | (15,066  | ) |   |   | 7,882 |   |   |   | 16,908 |   |
| Income      taxes payable                                                                                     |   |                                  | (18,308  | ) |   |   | 15,423 |   |   |   | (1,697 | ) |
| Deferred      taxes                                                                                           |   |                                  | (19,550  | ) |   |   | (2,202 | ) |   |   | 9,580 |   |
| VAT      and other taxes payable                                                                              |   |                                  | (3,865   | ) |   |   | (6,166 | ) |   |   | 9,126 |   |
|                                                                                                          |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Net      cash generated from continuing operating activities                                                  |   |                                  | 135,555  |   |   |   | 106,695 |   |   |   | 75,370 |   |
|                                                                                                          |   |                                  |     |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS USED IN INVESTING ACTIVITIES:                                                                 |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Net      change in restricted cash                                                                            |   |                                  | -        |   |   |   | (440 | ) |   |   | 5,516 |   |
| Purchase      of property, plant and equipment                                                                |   |                                  | (78,665  | ) |   |   | (79,943 | ) |   |   | (60,387 | ) |
| Proceeds      from disposal of property, plant and equipment                                                  |   |                                  | 408      |   |   |   | 570 |   |   |   | 19 |   |
| Investments      in subsidiaries and unconsolidated affiliates                                                |   |                                  | (512,531 | ) |   |   | (156,535 | ) |   |   | (72,603 | ) |
| Repayment      of loans and advances to related parties                                                       |   |                                  | 1,990    |   |   |   | 450 |   |   |   | 500 |   |
| Net      cash used in continuing investing activities                                                         |   |                                  | (588,798 | ) |   |   | (235,898 | ) |   |   | (126,955 | ) |
|                                                                                                          |   |                                  |     |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                    |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Net      proceeds from issuance of Senior Notes                                                               |   |                                  | -        |   |   |   | 199,400 |   |   |   | - |   |
| Proceeds      from credit facilities                                                                          |   |                                  | 223,091  |   |   |   | 177,515 |   |   |   | 34,981 |   |
| Payment      of credit facilities and capital leases                                                          |   |                                  | (176,615 | ) |   |   | (182,391 | ) |   |   | (75,263 | ) |
| Redemption      of Senior Notes                                                                               |   |                                  | -        |   |   |   | (169,010 | ) |   |   | - |   |
| Net      proceeds from issuance of Convertible Notes                                                          |   |                                  | 463,560  |   |   |   | - |   |   |   | - |   |
| Purchase      of capped call option                                                                           |   |                                  | (63,318  | ) |   |   |   |   |   |   |   |   |
| Excess      tax benefits from share-based payment arrangements                                                |   |                                  | 1,026    |   |   |   | 668 |   |   |   | - |   |
| Proceeds      from exercise of stock options                                                                  |   |                                  | 1,222    |   |   |   | 4,100 |   |   |   | 3,713 |   |
| Issuance      of Class A Common Stock                                                                         |   |                                  | -        |   |   |   | 109,853 |   |   |   | 168,654 |   |
| Dividends      paid to minority shareholders                                                                  |   |                                  | (4,408   | ) |   |   | (4,605 | ) |   |   | (1,385 | ) |
| Net      cash received from continuing financing activities                                                   |   |                                  | 444,558  |   |   |   | 135,530 |   |   |   | 130,700 |   |

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|                                                                                             |   | For      the Years Ended December 31, |    |
|--------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                             |   | 2008                                  |    |   | 2007 |   |   | 2006 |   |
|                                                                                             |   |                                  |    |   |   |   |   |   |   |
| NET      CASH USED IN DISCONTINUED OPERATIONS-OPERATING                                          |   |                                  | (4,920  | ) |   |   | (6,001 | ) |   |   | (3,667 | ) |
| NET      CASH USED IN DISCONTINUED OPERATIONS-INVESTING                                          |   |                                  | (495    | ) |   |   | (1,520 | ) |   |   | - |   |
| NET      CASH USED IN DISCONTINUED OPERATIONS-FINANCING                                          |   |                                  | -       |   |   |   | - |   |   |   | 1,700 |   |
| Impact      of exchange rate fluctuations on cash                                                |   |                                  | (21,279 | ) |   |   | (1,896 | ) |   |   | (2,904 | ) |
| Net      (decrease) / increase in cash and cash equivalents                                      |   |                                  | (35,379 | ) |   |   | (3,090 | ) |   |   | 74,244 |   |
| CASH      AND CASH EQUIVALENTS, beginning of year                                                |   |                                  | 142,812 |   |   |   | 145,902 |   |   |   | 71,658 |   |
| CASH      AND CASH EQUIVALENTS, end of year                                                      |   | $                                     | 107,433 |   |   | $ | 142,812 |   |   | $ | 145,902 |   |
|                                                                                             |   |                                  |    |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                           |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                      |   | $                                     | 55,331  |   |   | $ | 46,313 |   |   | $ | 41,038 |   |
| Cash      paid for income taxes (net of refunds)                                                 |   | $                                     | 72,974  |   |   | $ | 40,903 |   |   | $ | 35,831 |   |
|                                                                                             |   |                                  |    |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES:                     |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Purchase      of Krsak interest in the TV Nova (Czech Republic) group financed with      payable |   | $                                     | -       |   |   | $ | - |   |   | $ | 27,591 |   |
| Acquisition      of property, plant and equipment under capital lease                            |   | $                                     | 554     |   |   | $ | 136 |   |   | $ | 702 |   |

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| Company      Name                                                          | Effective Voting Interest | Jurisdiction      of  Organization | Type      of Affiliate           |
|----------------------------------------------------------------------------|-------------------------------------|-----------------------------------------|----------------------------------|
|                                                                       |                                |                                    |                             |
| Top      Tone Media S.A.                                                   | 80.0%                               | Luxembourg                              | Subsidiary                       |
| TV2      EOOD (“TV2”)                                          | 80.0%                               | Bulgaria                                | Subsidiary                       |
| Top      Tone Media Bulgaria EOOD                                          | 80.0%                               | Bulgaria                                | Subsidiary                       |
| Asteos      EOOD                                                           | 80.0%                               | Bulgaria                                | Subsidiary                       |
| Zopal      S.A.                                                            | 80.0%                               | Luxembourg                              | Subsidiary                       |
| LG      Consult EOOD                                                       | 80.0%                               | Bulgaria                                | Subsidiary                       |
| Ring      TV EAD  (“Ring TV”)                        | 80.0%                               | Bulgaria                                | Subsidiary                       |
|                                                                       |                                |                                    |                             |
| Nova      TV d.d. (“Nova TV (Croatia)”)                        | 100.0%                              | Croatia                                 | Subsidiary                       |
| Operativna      Kompanija d.o.o.                                           | 100.0%                              | Croatia                                 | Subsidiary                       |
| Media      House d.o.o.                                                    | 100.0%                              | Croatia                                 | Subsidiary                       |
| Internet      Dnevnik d.o.o.                                               | 76.0%                               | Croatia                                 | Subsidiary                       |
|                                                                       |                                |                                    |                             |
| CET      21 spol. s.r.o. (“CET 21”)                            | 100.0%                              | Czech Republic                     | Subsidiary                       |
| MEDIA      CAPITOL, a.s.                                                   | 100.0%                              | Czech Republic                     | Subsidiary                       |
| Jyxo,      s.r.o. (“Jyxo”)                                     | 100.0%                              | Czech Republic                     | Subsidiary                       |
| BLOG      Internet, s.r.o. (“Blog“)                            | 100.0%                              | Czech Republic                     | Subsidiary                       |
|                                                                       |                                |                                    |                             |
| CME      Romania B.V.                                                      | 100.0%                              | Netherlands                             | Subsidiary                       |
| Media      Pro International S.A. (“MPI”)                      | 95.0%                               | Romania                                 | Subsidiary                       |
| Media      Vision S.R.L (“Media Vision”)                       | 95.0%                               | Romania                                 | Subsidiary                       |
| Music      Television System S.R.L. (“MTS”)                    | 95.0%                               | Romania                                 | Subsidiary                       |
| Pro      TV S.A. (“Pro TV”)                                    | 95.0%                               | Romania                                 | Subsidiary                       |
| Sport      Radio TV Media S.R.L (“Sport.ro”)                   | 95.0%                               | Romania                                 | Subsidiary                       |
| Media      Pro Management S.A. (“Media Pro”)                   | 8.7%                                | Romania                                 | Cost      investment             |
| Media      Pro B.V.                                                        | 10.0%                               | Netherlands                             | Cost      investment             |
|                                                                       |                                |                                    |                             |
| CME      Slovak Holdings B.V.                                              | 100.0%                              | Netherlands                             | Subsidiary                       |
| A.R.J.,      a.s.                                                          | 100.0%                              | Slovak Republic                    | Subsidiary                       |
| MARKIZA-SLOVAKIA  spol.      s r.o. (“Markiza”) | 100.0%                              | Slovak Republic                    | Subsidiary                       |
| GAMATEX      spol. s r.o.                                                  | 100.0%                              | Slovak Republic                    | Subsidiary      (in liquidation) |

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| Company      Name                                            | Effective Voting Interest | Jurisdiction      of  Organization | Type      of Affiliate           |
|--------------------------------------------------------------|-------------------------------------|-----------------------------------------|----------------------------------|
| A.D.A.M.      a.s.                                           | 100.0%                              | Slovak Republic                    | Subsidiary      (in liquidation) |
| MEDIA      INVEST, spol. s.r.o. (“Media Invest”) | 100.0%                              | Slovak Republic                    | Subsidiary                       |
| EMAIL.SK      s.r.o.                                         | 80.0%                               | Slovak Republic                    | Subsidiary                       |
| PMT,      s.r.o.                                             | 31.5%                               | Slovak Republic                    | Cost      investment             |
|                                                         |                                |                                    |                             |
| MMTV      1 d.o.o.                                           | 100.0%                              | Slovenia                                | Subsidiary                       |
| Produkcija      Plus d.o.o. (“Pro Plus”)         | 100.0%                              | Slovenia                                | Subsidiary                       |
| POP      TV d.o.o. (“Pop TV”)                    | 100.0%                              | Slovenia                                | Subsidiary                       |
| Kanal      A d.o.o. (“Kanal A”)                  | 100.0%                              | Slovenia                                | Subsidiary                       |
| Euro      3 TV d.o.o.                                        | 42.0%                               | Slovenia                                | Equity-Accounted      Affiliate  |
| TELEVIDEO      d.o.o. (trading as TV Pika)                   | 20.0%                               | Slovenia                                | Equity-Accounted      Affiliate  |
|                                                         |                                |                                    |                             |
| International      Media Services Ltd.                       | 100.0%                              | Bermuda                                 | Subsidiary                       |
| CME      Ukraine Holding GmbH                                | 100.0%                              | Austria                                 | Subsidiary                       |
| Innova      Film GmbH                                        | 100.0%                              | Germany                                 | Subsidiary                       |
| CME      Cyprus Holding Ltd.                                 | 100.0%                              | Cyprus                                  | Subsidiary                       |
| TV      Media Planet Ltd.                                    | 100.0%                              | Cyprus                                  | Subsidiary                       |
| 1+1      Production                                          | 100.0%                              | Ukraine                                 | Subsidiary                       |
| Studio      1+1 LLC (“Studio 1+1”)               | 100.0%                              | Ukraine                                 | Subsidiary                       |
| Ukrainian      Media Services LLC                            | 99.9%                               | Ukraine                                 | Subsidiary                       |
| Grizard      Investments Limited.                            | 100.0%                              | Cyprus                                  | Subsidiary                       |
| Grintwood      Investments Limited                           | 100.0%                              | Cyprus                                  | Subsidiary                       |
| CME      Ukraine Holding B.V.                                | 100.0%                              | Netherlands                             | Subsidiary                       |
| Ukrpromtorg-2003      LLC (“Ukrpromtorg”)        | 65.5%                               | Ukraine                                 | Subsidiary                       |
| Gravis      LLC (“Gravis”)                       | 60.4%                               | Ukraine                                 | Subsidiary                       |
| Gravis-Kino      LLC (“Gravis-Kino”)        | 60.4%                               | Ukraine                                 | Subsidiary                       |
| Delta      JSC                                               | 60.4%                               | Ukraine                                 | Subsidiary                       |
| Nart      LLC                                                | 65.5%                               | Ukraine                                 | Subsidiary                       |
| TV      Stimul LLC (“TV Stimul”)                 | 64.2%                               | Ukraine                                 | Subsidiary                       |
| TOR      LLC (“Tor”)                             | 60.4%                               | Ukraine                                 | Subsidiary                       |
| ZHYSA      LLC (“Zhysa”)                         | 60.4%                               | Ukraine                                 | Subsidiary                       |
|                                                         |                                |                                    |                             |
| Central      European Media Enterprises N.V.                 | 100.0%                              | Netherlands      Antilles               | Subsidiary                       |
| Central      European Media Enterprises II B.V.              | 100.0%                              | Netherlands      Antilles               | Subsidiary                       |
| CME      Media Enterprises B.V.                              | 100.0%                              | Netherlands                             | Subsidiary                       |
| CME      Programming B.V.                                    | 100.0%                              | Netherlands                             | Subsidiary                       |
| CME      Development Corporation                             | 100.0%                              | Delaware      (USA)                     | Subsidiary                       |
| CME      SR d.o.o.                                           | 100.0%                              | Serbia                                  | Subsidiary                       |

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| Asset      category                            | Estimated      useful life |
|------------------------------------------------|----------------------------|
| Land                                           | Indefinite                 |
| Buildings                                      | 25      years              |
| Station      machinery, fixtures and equipment | 4 -      8 years           |
| Other      equipment                           | 3 –      8 years     |
| Software      licenses                         | 3 –      5 years     |

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|                                              |   | Amortization      % |   |
|---------------------------------------------------|--------|---------------------|--------|
| Type      of programming                          |   | Run      1          |   |   | Run      2 |   |   | Run      3 |   |   | Run      4 |   |   | Run      5 |   |
| Special      blockbuster                          |   |                | 30     | % |   |   | 25 | % |   |   | 20 | % |   |   | 15 | % |   |   | 10 | % |
| Films      and series, 2 runs                     |   |                | 65     | % |   |   | 35 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Films      and series, 3 runs                     |   |                | 60     | % |   |   | 30 | % |   |   | 10 | % |   |   | - |   |   |   | - |   |
| Long-run      series, Ukraine                     |   |                | 85     | % |   |   | 15 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Concerts,      documentaries, sports events, etc. |   |                | 100    | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

| · | we      intend to renew the licenses into the foreseeable  future; |
|--------|--------------------------------------------------------------------|

| · | we      have precedents of renewals or reasonable expectation of      renewals; |
|--------|---------------------------------------------------------------------------------|

| · | we      do not expect any substantial cost to be incurred as part of a future      license renewal and no costs have been incurred in the renewals to date;      and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | we      have not experienced any historical evidence of a compelling challenge to      our holding these licenses. |
|--------|--------------------------------------------------------------------------------------------------------------------|

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|                                      |   | For      the Year Ended December 31, 2008 |   |
|-------------------------------------------|--------|-------------------------------------------|--------|
| US$  millions                   |   | As      reported                          |   |   | Impact      of Adoption |   |   | As      Adjusted |   |
| Consolidated      Statement of Operations |   |
| Interest      expense                     |   |                                      | (68.5  | ) |   |   | (14.0 | ) |   |   | (82.5 | ) |

|                                           |   | As      at December 31, 2008 |     |
|------------------------------------------------|--------|------------------------------|----------|
| US$  millions                        |   | As      reported             |     |   | Impact      of Adoption |   |   | As      Adjusted |   |
| Consolidated      Balance Sheet                |   |                         |     |   |   |   |   |   |   |
| Other      current assets                      |   |                         | 98.7     |   |   |   | (0.6 | ) |   |   | 98.1 |   |
| Other      non-current assets                  |   |                         | 20.7     |   |   |   | (1.5 | ) |   |   | 19.2 |   |
| Senior      Debt                               |   |                         | (1,024.7 | ) |   |   | 96.2 |   |   |   | (928.5 | ) |
| Additional      paid-in capital                |   |                         | 1,018.5  |   |   |   | 108.1 |   |   |   | 1,126.6 |   |
| (Accumulated      deficit) / Retained Earnings |   |                         | (224.1   | ) |   |   | (14.0 | ) |   |   | (238.1 | ) |

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|                                                                                                                                                                                                                                                                                                                                                                              |   | Fair      Value on Acquisition |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                              |   |                           |    |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                    |   |                           | 353     |   |
| Other      net assets                                                                                                                                                                                                                                                                                                                                                             |   |                           | (15,311 | ) |
| Broadcasting      licenses subject to amortization (1)                                                                                                                                                                                                                                                                                                                            |   |                           | 95,114  |   |
| Other      intangible assets subject to amortization (2)                                                                                                                                                                                                                                                                                                                          |   |                           | 8,161   |   |
| Goodwill      (3)                                                                                                                                                                                                                                                                                                                                                                 |   |                           | 74,137  |   |
| Deferred      tax liability                                                                                                                                                                                                                                                                                                                                                       |   |                           | (10,114 | ) |
| Total      purchase price (4)                                                                                                                                                                                                                                                                                                                                                     |   |                           | 152,340 |   |
|                                                                                                                                                                                                                                                                                                                                                                              |   |                           |    |   |
| (1)      The broadcasting licenses subject to amortization comprise television      broadcasting licenses of US$ 94.4 million, which are being amortized on a      straight-line basis over 16.5 years, and radio broadcasting licenses of      US$ 0.7 million, which are being amortized on a straight-line basis over      17.4 years.                                         |   |
| (2)      The other intangible assets subject to amortization comprise a favorable      advertising sales contract with a leading Bulgarian advertising agency of      US$ 7.5 million, which is being amortized on a straight-line basis over      5.3 years and trademarks of US$ 0.7 million, which are being amortized      over two years using the declining balance method. |   |
| (3)      No goodwill is expected to be deductible for tax purposes.                                                                                                                                                                                                                                                                                                               |   |
| (4)      The total purchase price includes US$ 4.5 million of additional retention      amount and US$ 0.8 million of capitalized acquisition    costs.                                                                                                                                                                                                                           |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                     |   | Fair      Value on Acquisition |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           |   |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                           |   | $                              | 727    |   |
| Other      net assets                                                                                                                                                                                                                                                                                                                                                                                    |   |                           | 618    |   |
| Property,      plant and equipment                                                                                                                                                                                                                                                                                                                                                                       |   |                           | 3,744  |   |
| Intangible      assets not subject to amortization (1)                                                                                                                                                                                                                                                                                                                                                   |   |                           | 9,124  |   |
| Contingent      consideration liability (2)                                                                                                                                                                                                                                                                                                                                                              |   |                           | (160   | ) |
| Deferred      tax liability                                                                                                                                                                                                                                                                                                                                                                              |   |                           | (2,462 | ) |
| Total      purchase price (3)                                                                                                                                                                                                                                                                                                                                                                            |   | $                              | 11,591 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           |   |   |
| (1)      Intangible assets not subject to amortization comprise      trademarks.                                                                                                                                                                                                                                                                                                                         |   |
| (2)      Since the aggregate value of the assets and liabilities acquired exceeds      the purchase price without considering any additional amounts we may have      to pay that are contingent upon meeting operational targets, we have      recognized this excess, which is lower than the maximum amount of      contingent consideration that may become payable, as if it were a      liability. |   |
| (3)      The total purchase price includes US$ 0.5 million of capitalized      acquisition costs, initial cash payments of approximately US$ 9.4 million      and consideration payable of CZK 27.0 million (approximately US$ 1.7      million at the date of acquisition).                                                                                                                             |   |

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|                                                                                                                                              |   | Fair      Value on Acquisition |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                              |   |                           |   |
| Property,      plant and equipment                                                                                                                |   | $                              | 2,561  |   |
| Intangible      assets not subject to amortization (1)                                                                                            |   |                           | 15,892 |   |
| Goodwill      (2)                                                                                                                                 |   |                           | 2,394  |   |
| Total      purchase price (3)                                                                                                                     |   | $                              | 20,847 |   |
|                                                                                                                                              |   |                           |   |   |
| (1)      Intangible assets not subject to amortization comprise trademarks of US$      1.7 million and broadcasting licenses of US$ 14.2 million. |   |
| (2)      No goodwill is expected to be deductible for tax purposes.                                                                               |   |
| (3)      The total purchase price includes US$ 0.2 million of capitalized      acquisition costs.                                                 |   |

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|                                                                                                                                                                                                                                                              |   | Fair      Value on Acquisition |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                              |   |                           |   |
|                                                                                                                                                                                                                                                              |   |                           |   |
| Property,      plant and equipment                                                                                                                                                                                                                                |   | $                              | 410    |   |
| Intangible      assets subject to amortization (1)                                                                                                                                                                                                                |   |                           | 1,709  |   |
| Other      assets                                                                                                                                                                                                                                                 |   |                           | 827    |   |
| Goodwill                                                                                                                                                                                                                                                          |   |                           | 17,253 |   |
| Deferred      tax liability                                                                                                                                                                                                                                       |   |                           | (273   | ) |
| Other      liabilities                                                                                                                                                                                                                                            |   |                           | (3,417 | ) |
| Total      purchase price (2)                                                                                                                                                                                                                                     |   | $                              | 16,509 |   |
| (1)      The intangible assets subject to amortization is a Trademark and      Programming Agreement with MTV NE which allows MTS access to MTV      programming and to broadcast using the MTV name. This agreement is being      amortized over 4.3 years. |   |
| (2)      Includes acquisition costs of approximately US$ 0.4    million.                                                                                                                                                                                          |   |

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|                                                                                                                                                                                                                                               |   | Fair      Value on Acquisition |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                               |   |                           |   |
|                                                                                                                                                                                                                                               |   |                           |   |
| Property,      plant and equipment                                                                                                                                                                                                                 |   | $                              | 35     |   |
| Intangible      assets subject to amortization (1)                                                                                                                                                                                                 |   |                           | 4,784  |   |
| Intangible      assets not subject to amortization (2)                                                                                                                                                                                             |   |                           | 8,974  |   |
| Other      assets                                                                                                                                                                                                                                  |   |                           | 2,904  |   |
| Goodwill                                                                                                                                                                                                                                           |   |                           | 2,311  |   |
| Deferred      tax liability                                                                                                                                                                                                                        |   |                           | (1,575 | ) |
| Other      liabilities                                                                                                                                                                                                                             |   |                           | (6,398 | ) |
| Total      purchase price                                                                                                                                                                                                                          |   | $                              | 11,035 |   |
| (1)      The intangible assets subject to amortization comprise customer      relationships, which are being amortized over one to twenty years      (weighted average: 15.5 years) and trademarks, which are being amortized      over two years. |   |
| (2)      Intangible assets not subject to amortization represent television      broadcast licenses.                                                                                                                                               |   |

|                                                                                                                                                                                  |   | Fair      Value on Acquisition |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                  |   |                           |   |
| Intangible      assets subject to amortization (1)                                                                                                                                    |   | $                              | 4,517  |   |
| Intangible      assets not subject to amortization (2)                                                                                                                                |   |                           | 23,597 |   |
| Goodwill                                                                                                                                                                              |   |                           | 23,974 |   |
| Deferred      tax liability                                                                                                                                                           |   |                           | (4,498 | ) |
| Minority      interests                                                                                                                                                               |   |                           | 4,029  |   |
| Total      purchase price                                                                                                                                                             |   | $                              | 51,619 |   |
| (1)      The intangible assets subject to amortization comprise customer      relationships, which are being amortized over one to ten years (weighted      average: 8.3 years).      |   |
| (2)      Intangible assets not subject to amortization comprise approximately US$      9.2 million in trademarks and US$ 14.4 million relating to television      broadcast licenses. |   |

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|                                                                                                                                                                                                                                                                                                                                     |   | Fair      Value on Acquisition |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                     |   |                           |   |
| Property      Plant and Equipment                                                                                                                                                                                                                                                                                                        |   | $                              | 2,425  |   |
| Intangible      assets subject to amortization (1)                                                                                                                                                                                                                                                                                       |   |                           | 46,906 |   |
| Intangible      assets not subject to amortization (2)                                                                                                                                                                                                                                                                                   |   |                           | 2,405  |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                 |   |                           | 26,757 |   |
| Deferred      tax liability                                                                                                                                                                                                                                                                                                              |   |                           | (9,761 | ) |
| Minority      interest                                                                                                                                                                                                                                                                                                                   |   |                           | 10,268 |   |
| Other      liabilities                                                                                                                                                                                                                                                                                                                   |   |                           | (357   | ) |
| Total      purchase price (3)                                                                                                                                                                                                                                                                                                            |   | $                              | 78,643 |   |
| (1)      The intangible assets subject to amortization includes US$ 8.7      million relating to television broadcasting licenses, which are being      amortized over 13 years and US$ 37.9 million in customer      relationships, which are being amortized over one to fourteen years      (weighted average: 13.8 years). |   |
| (2)      Intangible assets not subject to amortization comprise      trademarks.                                                                                                                                                                                                                                                         |   |
| (3)      Total purchase price includes US$ 0.1 million of capitalized acquisition      costs.                                                                                                                                                                                                                                            |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Fair      value on acquisition |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | June      30, 2008             |    |   | October      17, 2008 |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                           |    |   |   |   |   |   |   |
| Intangible      assets subject to amortization (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                              | 41,480  |   |   | $ | 3,266 |   |   | $ | 44,746 |   |
| Intangible      assets not subject to amortization (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           | 35,652  |   |   |   | 3,019 |   |   |   | 38,671 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                           | 208,964 |   |   |   | 42,245 |   |   |   | 251,209 |   |
| Deferred      tax liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                           | (19,284 | ) |   |   | (1,571 | ) |   |   | (20,855 | ) |
| Minority      interests (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                           | 14,398  |   |   |   | 62,383 |   |   |   | 76,781 |   |
| Total      purchase price (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                              | 281,210 |   |   | $ | 109,342 |   |   | $ | 390,552 |   |
| (1)      The intangible assets subject to amortization acquired on June 30, 2008      comprise broadcasting licenses of US$ 40.9 million, which are being      amortized on a straight-line basis over 18 years, and customer      relationships of US$ 0.6 million, which are being amortized on a      straight-line basis over nine years. The intangible assets subject to      amortization on October 17, 2008 comprise broadcasting licenses of US$ 3.2      million, which are being amortized on a straight-line basis over 17.8      years. |   |
| (2)      Intangible assets not subject to amortization comprise      trademarks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| (3)      As a result of granting Messrs.      Rodnyansky and Fuchsmann options to      put their remaining      10.0% interests to us we accounted for the remaining 10.0%      interest as a redeemable minority interest. Before performing the purchase      price      allocation in      respect of the October 17, 2008 acquisition, we reversed the outstanding      redeemable minority interest up to the amount then recognized in retained      earnings.                                                                                  |   |
| (4)      The      total purchase price on June 30, 2008 included US$ 3.6 million of      capitalized acquisition costs, cash payments to Messrs. Rodnyansky and      Fuchsmann of US$ 79.6 million, cash payments of US$ 140.0 million to Mr.      Kolomoisky and the fair value of options granted to Messrs. Rodnyansky and      Fuchsmann of US$ 58.0 million. The total purchase price on October 17,      2008 included US$ 0.2 million of capitalized acquisition      costs.                                                                        |   |

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|                      |   | Balance       Dec 31, 2006 |    |   | Additions |   |   | Allocation      / Adjustment |   |   | Impairment charge |   |   | Foreign       currency movement |   |   | Balance       Dec 31, 2007 |   |
|---------------------------|--------|---------------------------------|---------|--------|-----------|--------|--------|-----------------------------------|--------|--------|------------------------|--------|--------|--------------------------------------|--------|--------|---------------------------------|--------|
|                      |   |                            |    |   |      |   |   |                              |   |   |                   |   |   |                                 |   |   |                            |   |
| Bulgaria                  |   | $                               | -       |   |      | $      | -      |                              |   | $      | -                      |   |   | $                                    | -      |   |                            | $      | - |   |   | $ | - |   |
| Croatia                   |   |                            | -       |   |      |   | 712    |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | 61 |   |   |   | 773 |   |
| Czech Republic       |   |                            | 823,786 |   |      |   | -      |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | 127,500 |   |   |   | 951,286 |   |
| Romania                   |   |                            | 31,130  |   |      |   | 43,537 |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | - |   |   |   | 74,667 |   |
| Slovak Republic      |   |                            | 25,483  |   |      |   | 26,757 |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | 5,395 |   |   |   | 57,635 |   |
| Slovenia                  |   |                            | 16,458  |   |      |   | -      |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | 1,935 |   |   |   | 18,393 |   |
| Ukraine      (STUDIO 1+1) |   |                            | 4,096   |   |      |   | -      |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | - |   |   |   | 4,096 |   |
| Ukraine      (KINO, CITI) |   |                            | 4,627   |   |      |   | 2,870  |                              |   |   | -                      |   |   |                                 | -      |   |                            |   | - |   |   |   | 7,497 |   |
| Total                     |   | $                               | 905,580 |   |      | $      | 73,876 |                              |   | $      | -                      |   |   | $                                    | -      |   |                            | $      | 134,891 |   |   | $ | 1,114,347 |   |

|                      |   | Balance       Dec 31, 2007 |      |   | Additions |   |    | Allocation      / Adjustment |   |   | Impairment charge |   |   | Foreign       currency movement |     |   | Balance       Dec 31, 2008 |   |
|---------------------------|--------|---------------------------------|-----------|--------|-----------|--------|---------|-----------------------------------|--------|--------|------------------------|--------|--------|--------------------------------------|----------|--------|---------------------------------|--------|
|                      |   |                            |      |   |      |   |    |                              |   |   |                   |   |   |                                 |     |   |                            |   |
| Bulgaria                  |   | $                               | -         |   |      |   | 74,137  |                              |   |   | -                      |   |   |                                 | (64,044  | )      |                            |   | (10,093 | ) |   |   | - |   |
| Croatia                   |   |                            | 773       |   |      |   | -       |                              |   |   | -                      |   |   |                                 | -        |   |                            |   | (34 | ) |   |   | 739 |   |
| Czech Republic       |   |                            | 951,286   |   |      |   | -       |                              |   |   | -                      |   |   |                                 | -        |   |                            |   | (62,350 | ) |   |   | 888,936 |   |
| Romania                   |   |                            | 74,667    |   |      |   | 2,394   |                              |   |   | (525                   | )      |   |                                 | -        |   |                            |   | (4,200 | ) |   |   | 72,336 |   |
| Slovak Republic      |   |                            | 57,635    |   |      |   | -       |                              |   |   | -                      |   |   |                                 | -        |   |                            |   | 4,007 |   |   |   | 61,642 |   |
| Slovenia                  |   |                            | 18,393    |   |      |   | -       |                              |   |   | -                      |   |   |                                 | -        |   |                            |   | (1,005 | ) |   |   | 17,388 |   |
| Ukraine      (STUDIO 1+1) |   |                            | 4,096     |   |      |   | 251,209 |                              |   |   | -                      |   |   |                                 | (255,305 | )      |                            |   | - |   |   |   | - |   |
| Ukraine      (KINO, CITI) |   |                            | 7,497     |   |      |   | -       |                              |   |   | (59                    | )      |   |                                 | (7,438   | )      |                            |   | - |   |   |   | - |   |
| Total                     |   | $                               | 1,114,347 |   |      | $      | 327,740 |                              |   | $      | (584                   | )      |   | $                                    | (326,787 | )      |                            | $      | (73,675 | ) |   | $ | 1,041,041 |   |

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|                            |   | Indefinite-Lived      Broadcast Licenses |   |   | Amortized      Broadcast Licenses |   |    | Trademarks |   |   | Customer      Relationships |   |   | Other  |   |   | Total  |   |
|---------------------------------|--------|------------------------------------------|--------|--------|-----------------------------------|--------|---------|------------|--------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
| Balance,      December 31, 2006 |   | $                                        | 26,344 |   |                              | $      | 172,386 |       |   | $      | 44,026                      |   |   | $      | 27,213 |   |   | $      | 453 |   |   | $ | 270,422 |   |
| Additions                       |   |                                     | 23,321 |   |                              |   | 8,974   |       |   |   | 12,192                      |   |   |   | 46,554 |   |   |   | 2,126 |   |   |   | 93,167 |   |
| Amortization                    |   |                                     | -      |   |                              |   | (18,960 | )          |   |   | (265                        | )      |   |   | (5,244 | )      |   |   | (501 | ) |   |   | (24,970 | ) |
| Foreign      currency movements |   |                                     | 1,083  |   |                              |   | 24,778  |       |   |   | 4,131                       |   |   |   | 4,744  |   |   |   | 67 |   |   |   | 34,803 |   |
| Balance,      December 31, 2007 |   | $                                        | 50,748 |   |                              | $      | 187,178 |       |   | $      | 60,084                      |   |   | $      | 73,267 |   |   | $      | 2,145 |   |   | $ | 373,422 |   |
| Reallocation      (1)           |   |                                     | -      |   |                              |   | -       |       |   |   | -                           |   |   |   | -      |   |   |   | 624 |   |   |   | 624 |   |
| Additions                       |   |                                     | 14,177 |   |                              |   | 139,235 |       |   |   | 50,198                      |   |   |   | 598    |   |   |   | 7,473 |   |   |   | 211,681 |   |
| Impairment                      |   |                                     | -      |   |                              |   | (637    | )          |   |   | (8,703                      | )      |   |   | -      |   |   |   | (625 | ) |   |   | (9,965 | ) |
| Amortization                    |   |                                     | -      |   |                              |   | (25,088 | )          |   |   | (1,054                      | )      |   |   | (8,155 | )      |   |   | (1,084 | ) |   |   | (35,381 | ) |
| Foreign      currency movements |   |                                     | (5,069 | )      |                              |   | (18,630 | )          |   |   | (3,478                      | )      |   |   | 2,570  |   |   |   | (1,042 | ) |   |   | (25,649 | ) |
| Balance,      December 31, 2008 |   | $                                        | 59,856 |   |                              | $      | 282,058 |       |   | $      | 97,047                      |   |   | $      | 68,280 |   |   | $      | 7,491 |   |   | $ | 514,732 |   |

|                                                           |   | December      31,2008 |    |   | December      31, 2007 |   |
|----------------------------------------------------------------|--------|-----------------------|---------|--------|------------------------|--------|
|                                                           |   |                  |    |   |                   |   |
| Gross      value                                               |   | $                     | 549,140 |   |                   | $      | 388,350 |   |
| Accumulated      amortization                                  |   |                  | (94,264 | )      |                   |   | (65,676 | ) |
| Net      book value of amortized intangible assets             |   | $                     | 454,876 |   |                   | $      | 322,674 |   |
| Indefinite-lived      broadcast licenses                       |   |                  | 59,856  |   |                   |   | 50,748 |   |
| Total      broadcast licenses and other intangible assets, net |   | $                     | 514,732 |   |                   | $      | 373,422 |   |

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|                      |   | Long-Lived      Assets    |   |   | Goodwill      and Indefinite-Lived Intangible Assets |   |   |                         |   |
|---------------------------|--------|---------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------|--------|
|                      |   | Amortized      Trademarks |   |   | Amortized      Broadcast Licenses                    |   |   | Other      Intangible Assets |   |   | Indefinite-Lived      Trademarks |   |   | Goodwill |   |   | Total |   |
| Bulgaria                  |   | $                         | 222    |   |                                                 | $      | -      |                         |   | $ | 625 |   |   | $ | - |   |   | $ | 64,044 |   |   | $ | 64,891 |   |
| Ukraine      (STUDIO 1+1) |   |                      | -      |   |                                                 |   | -      |                         |   |   | - |   |   |   | 8,481 |   |   |   | 255,305 |   |   |   | 263,786 |   |
| Ukraine      (KINO, CITI) |   |                      | -      |   |                                                 |   | 637    |                         |   |   | - |   |   |   | - |   |   |   | 7,438 |   |   |   | 8,075 |   |
| Total                     |   | $                         | 222    |   |                                                 | $      | 637    |                         |   | $ | 625 |   |   | $ | 8,481 |   |   | $ | 326,787 |   |   | $ | 336,752 |   |

|   | · | Growing      uncertainty in all of our markets over future growth or contraction in the      advertising markets; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | A      rapid deepening of the global economic crisis, including a widespread      withdrawal of investment funding from the Central and Eastern European      markets and companies with investments in them, particularly Ukraine,      Bulgaria and Romania; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Significant      and rapid falls in the price of our shares of Class A common stock, beyond      the point at which the carrying value of our net assets exceeded the      market value of our shares, which were sustained throughout the      period; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An      unprecedented spike in sovereign debt yields in our markets, suggesting a      fundamental re-pricing of risk by investors;and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An      escalation of the economic and political crisis in Ukraine following its      receipt of a US$ 16.5 billion emergency loan from the IMF, including a      dispute with Russia over natural gassupplies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Measurement                           | Valuation      Method               |
|---------------------------------------|-------------------------------------|
| Recoverability      of cash flows     | Undiscounted      future cash flows |
| Fair      value of broadcast licenses | Build-out      method               |
| Fair      value of trademarks         | Relief      from royalty method     |
| Fair      value of reporting units    | Discounted      cash flow model     |

| 10%      Adverse Change in        | Long-Lived      Assets | Indefinite-Lived      Trademarks | Indefinite-Lived      Broadcast Licenses | Goodwill |
|-----------------------------------|------------------------|----------------------------------|------------------------------------------|----------|
| Cost      of Capital              | None                   | Ukraine      (STUDIO 1+1)        | Romania,      Slovenia                   | None     |
|                              |                   |                             |                                     |     |
| Total      Advertising Market     | Bulgaria               | Ukraine      (STUDIO 1+1)        | Slovenia                                 | Croatia  |
|                              |                   |                             |                                     |     |
| Market      Share                 | Bulgaria               | Ukraine      (STUDIO 1+1)        | Slovenia                                 | Croatia  |
|                              |                   |                             |                                     |     |
| Forecast      operating costs     | Bulgaria               | Not      applicable              | Romania,      Slovenia                   | Croatia  |
|                              |                   |                             |                                     |     |
| Forecast      capital expenditure | None                   | Not      applicable              | None                                     | None     |
|                              |                   |                             |                                     |     |
| Perpetuity      Growth rate       | Not      applicable    | Ukraine      (STUDIO 1+1)        | None                                     | None     |

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|           |                        |   |                                |   |   | Carrying      value    |   |
|----------------|-----------------------------|--------|-------------------------------------|--------|--------|------------------------|--------|
|           | Type      of Affiliate      |   | Effective Voting      interest |   |   | December      31, 2008 |   |   | December      31, 2007 |   |
|           |                        |   |                                |   |   |                   |   |   |   |   |
| Media      Pro | Cost      Method Investment |   |                                | 8.7    | %      |                   | $      | 16,559 |   |   | $ | 16,559 |   |
|           |                        |   |                                |   |   |                   | $      | 16,559 |   |   | $ | 16,559 |   |

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|                                                  |   | Carrying      Value         |      |   | Fair      Value        |   |
|-------------------------------------------------------|--------|-----------------------------|-----------|--------|------------------------|--------|
|                                                  |   | December 31,      2008 |      |   | December      31, 2007 |   |   | December      31, 2008 |   |   | December      31, 2007 |   |
|                                                  |   |                        |      |   |                   |   |   |   |   |   |   |   |
| EUR      245.0 million 8.25% Senior Notes             |   | $                           | 340,966   |   |                   | $      | 360,664 |   |   | $ | 233,562 |   |   | $ | 366,976 |   |
| EUR      150.0 million Floating Rate Senior Notes     |   |                        | 208,755   |   |                   |   | 220,815 |   |   |   | 125,253 |   |   |   | 204,806 |   |
| USD      475.0 million 3.50% Senior Convertible Notes |   |                        | 475,000   |   |                   |   | - |   |   |   | 230,375 |   |   |   | - |   |
|                                                  |   | $                           | 1,024,721 |   |                   | $      | 581,479 |   |   | $ | 589,190 |   |   | $ | 571,782 |   |

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| From:                             | Fixed      Rate NotesRedemption      Price |
|-----------------------------------|--------------------------------------------|
|                              |                                       |
| May      15, 2009 to May 14, 2010 | 104.125%                                   |
| May      15, 2010 to May 14, 2011 | 102.063%                                   |
| May      15, 2011 and thereafter  | 100.000%                                   |

| From:                             | Floating      Rate  NotesRedemption      Price |
|-----------------------------------|----------------------------------------------------------|
|                              |                                                     |
| May      15, 2008 to May 14, 2009 | 101.000%                                                 |
| May      15, 2009 and thereafter  | 100.000%                                                 |

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| Stock      Price       |   |   | Shares      issued on conversion of Convertible Notes |   |       | Shares      received on exercise of capped call options |   |   | Net      shares issued |   |   | Value      of shares issued (US$ ‘000) |       |
|------------------------|--------|--------|-------------------------------------------------------|--------|------------|---------------------------------------------------------|--------|--------|------------------------|--------|--------|----------------------------------------------|------------|
| $105.00      and below |   |   |                                                  | -      |       |                                                    |   | -      |                   |   |   | -                                            |       |   | $ | - |   |
| $                      | 110.00 |   |                                                  |   | (205,628   | )                                                       |   |   | 133,658                |   |   |                                         | (71,970    | ) |   | $ | (7,917 | ) |
| $                      | 120.00 |   |                                                  |   | (565,476   | )                                                       |   |   | 367,559                |   |   |                                         | (197,917   | ) |   | $ | (23,750 | ) |
| $                      | 130.00 |   |                                                  |   | (869,963   | )                                                       |   |   | 565,475                |   |   |                                         | (304,488   | ) |   | $ | (39,583 | ) |
| $                      | 140.00 |   |                                                  |   | (1,130,951 | )                                                       |   |   | 735,118                |   |   |                                         | (395,833   | ) |   | $ | (55,417 | ) |
| $                      | 151.20 |   |                                                  |   | (1,382,274 | )                                                       |   |   | 898,478                |   |   |                                         | (483,796   | ) |   | $ | (73,150 | ) |
| $                      | 200.00 |   |                                                  |   | (2,148,807 | )                                                       |   |   | 679,248                |   |   |                                         | (1,469,559 | ) |   | $ | (293,912 | ) |

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|                                               |   | December      31, 2008 |    |   | December      31, 2007 |   |
|----------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
| Third-party      customers                         |   | $                      | 227,253 |   |                   | $      | 231,128 |   |
| Less      allowance for bad debts and credit notes |   |                   | (14,663 | )      |                   |   | (13,863 | ) |
| Related      parties                               |   |                   | 8,913   |   |                   |   | 8,165 |   |
| Less      allowance for bad debts and credit notes |   |                   | (53     | )      |                   |   | (717 | ) |
| Total      accounts receivable                     |   | $                      | 221,450 |   |                   | $      | 224,713 |   |

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|                            |   | December      31,2008 |   |   | December      31, 2007 |   |
|---------------------------------|--------|-----------------------|--------|--------|------------------------|--------|
| Current:                        |   |                  |   |   |                   |   |
| Prepaid      programming        |   | $                     | 54,301 |   |                   | $      | 50,914 |   |
| Other      prepaid expenses     |   |                  | 7,286  |   |                   |   | 11,656 |   |
| Productions      in progress    |   |                  | 14,080 |   |                   |   | 5,724 |   |
| VAT      recoverable            |   |                  | 3,460  |   |                   |   | 3,891 |   |
| Deferred      tax               |   |                  | 5,898  |   |                   |   | 3,652 |   |
| Capitalized      debt costs     |   |                  | 5,275  |   |                   |   | 3,104 |   |
| Loan      to related party      |   |                  | -      |   |                   |   | 1,924 |   |
| Restricted      cash            |   |                  | 821    |   |                   |   | 1,286 |   |
| Income      taxes recoverable   |   |                  | 1,216  |   |                   |   | 1,234 |   |
| Assets      held for sale       |   |                  | 5,484  |   |                   |   | 6,385 |   |
| Other                           |   |                  | 904    |   |                   |   | 685 |   |
| Total      other current assets |   | $                     | 98,725 |   |                   | $      | 90,455 |   |

|                                |   | December      31,2008 |   |   | December      31, 2007 |   |
|-------------------------------------|--------|-----------------------|--------|--------|------------------------|--------|
| Non-current:                        |   |                  |   |   |                   |   |
| Capitalized      debt costs         |   | $                     | 14,760 |   |                   | $      | 10,310 |   |
| Deferred  tax             |   |                  | 2,108  |   |                   |   | 2,123 |   |
| Other                               |   |                  | 3,875  |   |                   |   | 2,912 |   |
| Total      other non-current assets |   | $                     | 20,743 |   |                   | $      | 15,345 |   |

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|                                                          |   | December      31, 2008 |     |   | December      31, 2007 |   |
|---------------------------------------------------------------|--------|------------------------|----------|--------|------------------------|--------|
|                                                          |   |                   |     |   |                   |   |
| Land      and buildings                                       |   | $                      | 92,421   |   |                   | $      | 82,039 |   |
| Station      machinery, fixtures and equipment                |   |                   | 190,090  |   |                   |   | 170,200 |   |
| Other      equipment                                          |   |                   | 35,470   |   |                   |   | 31,138 |   |
| Software      licenses                                        |   |                   | 30,219   |   |                   |   | 21,312 |   |
| Construction      in progress                                 |   |                   | 11,293   |   |                   |   | 11,406 |   |
| Total      cost                                               |   | $                      | 359,493  |   |                   |   | 316,095 |   |
| Less:  Accumulated      depreciation                |   |                   | (152,826 | )      |                   |   | (140,787 | ) |
| Total      net book value                                     |   | $                      | 206,667  |   |                   | $      | 175,308 |   |
| Assets      held under capital leases (included in the above) |   |                   |     |   |                   |   |   |   |
| Land      and buildings                                       |   | $                      | 5,855    |   |                   | $      | 6,193 |   |
| Station      machinery, fixtures and equipment                |   |                   | 1,917    |   |                   |   | 800 |   |
| Total      cost                                               |   |                   | 7,772    |   |                   |   | 6,993 |   |
| Less:  Accumulated      depreciation                |   |                   | (1,644   | )      |                   |   | (1,368 | ) |
| Net      book value                                           |   | $                      | 6,128    |   |                   | $      | 5,625 |   |

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|                                                |   | December      31, 2008 |    |   | December      31, 2007 |   |
|-----------------------------------------------------|--------|-----------------------------|---------|--------|------------------------|--------|
| Accounts      payable                               |   | $                           | 35,778  |   |                   | $      | 37,924 |   |
| Programming      liabilities                        |   |                        | 44,251  |   |                   |   | 49,457 |   |
| Duties      and other taxes payable                 |   |                        | 22,635  |   |                   |   | 29,945 |   |
| Accrued      staff costs                            |   |                        | 27,318  |   |                   |   | 29,202 |   |
| Income      taxes payable                           |   |                        | 7,399   |   |                   |   | 27,705 |   |
| Accrued      production costs                       |   |                        | 6,531   |   |                   |   | 4,982 |   |
| Accrued      interest payable                       |   |                        | 10,531  |   |                   |   | 5,768 |   |
| Authors’      rights                          |   |                        | 4,734   |   |                   |   | 5,522 |   |
| Other      accrued liabilities                      |   |                        | 15,708  |   |                   |   | 12,808 |   |
| Total      accounts payable and accrued liabilities |   | $                           | 174,885 |   |                   | $      | 203,313 |   |

|                                                  |   |   |   |                 | December      31, 2008 |   |    | December      31, 2007 |   |
|-------------------------------------------------------|--------|--------|--------|----------------------|-----------------------------|--------|---------|------------------------|--------|
| Credit      facilities:                               |   |   |   |                 |                        |   |    |                   |   |
| Corporate                                             |   |   |   | (a)      – (b) |                        | $      | 57,180  |                   |   | $ | - |   |
| Czech Republic                                   |   |   |   | (c)      – (e) |                        |   | 12,923  |                   |   |   | 13,829 |   |
| Romania                                               |   |   |   | (f)                  |                        |   | 104     |                   |   |   | 683 |   |
| Slovak Republic                                  |   |   |   | (g)                  |                        |   | -       |                   |   |   | - |   |
| Slovenia                                              |   |   |   | (h)                  |                        |   | -       |                   |   |   | - |   |
| Ukraine      (STUDIO 1+1)                             |   |   |   | (i)                  |                        |   | 172     |                   |   |   |   |   |
| Total      credit facilities                          |   |   |   |                 |                        | $      | 70,379  |                   |   | $ | 14,512 |   |
|                                                  |   |   |   |                 |                        |   |    |                   |   |   |   |   |
| Capital      leases:                                  |   |   |   |                 |                        |   |    |                   |   |   |   |   |
| Bulgaria      operations, net of interest             |   |   |   |                 |                        | $      | 689     |                   |   | $ | - |   |
| Romania      operations, net of interest              |   |   |   |                 |                        |   | 289     |                   |   |   | 242 |   |
| Slovak Republic      operations, net of interest |   |   |   |                 |                        |   | 36      |                   |   |   | 86 |   |
| Slovenia      operations, net of interest             |   |   |   |                 |                        |   | 3,867   |                   |   |   | 4,412 |   |
| Total      capital leases                             |   |   |   |                 |                        | $      | 4,881   |                   |   | $ | 4,740 |   |
|                                                  |   |   |   |                 |                        |   |    |                   |   |   |   |   |
| Total      credit facilities and capital leases       |   |   |   |                 |                        | $      | 75,260  |                   |   | $ | 19,252 |   |
| Less      current maturities                          |   |   |   |                 |                        |   | (36,502 | )                      |   |   | (15,090 | ) |
| Total      non-current maturities                     |   |   |   |                 |                        | $      | 38,758  |                   |   | $ | 4,162 |   |

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| 2009                     |   | $      | 35,587    |   |
|--------------------------|--------|--------|-----------|--------|
| 2010                     |   |   | -         |   |
| 2011                     |   |   | 34,792    |   |
| 2012                     |   |   | 340,966   |   |
| 2013                     |   |   | 475,000   |   |
| 2014      and thereafter |   |   | 208,755   |   |
| Total                    |   | $      | 1,095,100 |   |

| 2009                                             |   | $      | 1,146  |   |
|--------------------------------------------------|--------|--------|--------|--------|
| 2010                                             |   |   | 704    |   |
| 2011                                             |   |   | 611    |   |
| 2012                                             |   |   | 598    |   |
| 2013                                             |   |   | 3,237  |   |
| 2014      and thereafter                         |   |   | -      |   |
|                                             |   | $      | 6,296  |   |
| Less:      amount representing interest          |   |   | (1,415 | )      |
| Present      value of net minimum lease payments |   | $      | 4,881  |   |

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|                                                            |   | December      31, 2008 |   |   | December      31, 2007 |   |
|-----------------------------------------------------------------|--------|-----------------------------|--------|--------|------------------------|--------|
| Current:                                                        |   |                        |   |   |                   |   |
| Deferred      revenue                                           |   | $                           | 7,684  |   |                   | $      | 7,011 |   |
| Consideration      payable – Bulgaria                     |   |                        | 4,500  |   |                   |   | - |   |
| Consideration      payable - Romania                            |   |                        | 724    |   |                   |   | 2,208 |   |
| Dividends      payable to minority shareholders in subsidiaries |   |                        | -      |   |                   |   | 1,226 |   |
| Onerous      contracts                                          |   |                        | 1,994  |   |                   |   | 2,832 |   |
| Deferred      tax                                               |   |                        | 177    |   |                   |   | 272 |   |
| Liability      held for sale                                    |   |                        | 2,207  |   |                   |   | 2,030 |   |
| Obligation      to repurchase shares                            |   |                        | -      |   |                   |   | 488 |   |
| Total      other current liabilities                            |   | $                           | 17,286 |   |                   | $      | 16,067 |   |

|                                                   |   | December      31, 2008 |    |   | December      31, 2007 |   |
|--------------------------------------------------------|--------|-----------------------------|---------|--------|------------------------|--------|
| Non-current:                                           |   |                        |    |   |                   |   |
| Deferred      tax                                      |   | $                           | 89,126  |   |                   | $      | 73,340 |   |
| Income      taxes payable                              |   |                        | 1,070   |   |                   |   | 2,495 |   |
| Fair      value of derivatives                         |   |                        | 9,882   |   |                   |   | 16,242 |   |
| Program      rights                                    |   |                        | 9,922   |   |                   |   | 23 |   |
| Consideration      payable – Czech Republic |   |                        | 1,396   |   |                   |   | - |   |
| Other                                                  |   |                        | 819     |   |                   |   | 3,262 |   |
| Total      other non-current liabilities               |   | $                           | 112,215 |   |                   | $      | 95,362 |   |

| Level      1 | Unadjusted      quoted prices in active markets that are accessible at the measurement      date for identical, unrestrictedinstruments. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------|

| Level      2 | Quoted      prices in markets that are not considered to be active or valuations of      financial instruments for which all significant inputs are observable,      either directly or indirectly. |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Level      3 | Prices      or valuations that require inputs that are both significant to the fair      value measurement and unobservable. |
|--------------|------------------------------------------------------------------------------------------------------------------------------|

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|     |   | For      the Years Ended December 31, |     |
|----------|--------|---------------------------------------|----------|
|     |   | 2008                                  |     |   | 2007 |   |   | 2006 |   |
| Domestic |   |                                  | (15,795  | ) |   | $ | (102,532 | ) |   | $ | (43,777 | ) |
| Foreign  |   |                                  | (199,368 | ) |   |   | 233,559 |   |   |   | 94,523 |   |
|     |   | $                                     | (215,163 | ) |   | $ | 131,027 |   |   | $ | 50,746 |   |

|                                                                                |   | For      the Years Ended December 31, |   |
|-------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
| Income      tax expense from continuing operations                                  |   | $                                     | 34,525 |   |   | $ | 20,822 |   |   | $ | 14,952 |   |
| Income      tax expense from discontinued operations                                |   |                                  | (64    | ) |   |   | (29 | ) |   |   | 4,873 |   |
| Currency      translation adjustment in accumulated other comprehensive      income |   |                                  | -      |   |   |   | 20,202 |   |   |   | 22,878 |   |
| Total      tax charge                                                               |   | $                                     | 34,461 |   |   | $ | 40,995 |   |   | $ | 42,703 |   |

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|                                   |   | For      the Years Ended December 31, |    |
|----------------------------------------|--------|---------------------------------------|---------|
|                                   |   | 2008                                  |    |   | 2007 |   |   | 2006 |   |
| Current      income tax expense:       |   |                                  |    |   |   |   |   |   |   |
| Domestic                               |   | $                                     | 253     |   |   | $ | (20,046 | ) |   | $ | (22,745 | ) |
| Foreign                                |   |                                  | 49,431  |   |   |   | 51,806 |   |   |   | 36,000 |   |
|                                   |   | $                                     | 49,684  |   |   | $ | 31,760 |   |   | $ | 13,255 |   |
| Deferred      tax expense / (benefit): |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Domestic                               |   | $                                     | 21      |   |   | $ | - |   |   | $ | 1,467 |   |
| Foreign                                |   |                                  | (15,180 | ) |   |   | (10,938 | ) |   |   | 230 |   |
|                                   |   | $                                     | (15,159 | ) |   | $ | (10,938 | ) |   | $ | 1,697 |   |
|                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes        |   | $                                     | 34,525  |   |   | $ | 20,822 |   |   | $ | 14,952 |   |

|                                                                                              |   | For      the Years Ended December 31, |    |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                              |   | 2008                                  |    |   | 2007 |   |   | 2006 |   |
| Income      taxes at Netherlands rates (2008 and 2007: 25.5%,      2006:  29.6%)        |   | $                                     | (54,855 | ) |   | $ | 33,409 |   |   | $ | 15,018 |   |
| Jurisdictional      differences in tax rates                                                      |   |                                  | 715     |   |   |   | (15,971 | ) |   |   | (10,445 | ) |
| Tax      effect of impairment losses                                                              |   |                                  | 73,092  |   |   |   | - |   |   |   | 149 |   |
| Effect      of change in tax law relating to investment allowances claimed in previous      years |   |                                  | -       |   |   |   | - |   |   |   | (2,065 | ) |
| Interest      expense disallowed                                                                  |   |                                  | 1,150   |   |   |   | 4,347 |   |   |   | 7,365 |   |
| Tax      effect of other permanent differences                                                    |   |                                  | 6,724   |   |   |   | 2,597 |   |   |   | (656 | ) |
| Effect      of changes in tax rates                                                               |   |                                  | 9       |   |   |   | (9,271 | ) |   |   | 89 |   |
| Change      in valuation allowance                                                                |   |                                  | 7,192   |   |   |   | 9,803 |   |   |   | 5,418 |   |
| Other                                                                                             |   |                                  | 498     |   |   |   | (4,092 | ) |   |   | 79 |   |
|                                                                                              |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes                                                                   |   | $                                     | 34,525  |   |   | $ | 20,822 |   |   | $ | 14,952 |   |

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|                                                           |   | December      31, 2008 |    |   | December      31, 2007 |   |
|----------------------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
| Assets:                                                        |   |                   |    |   |                   |   |
| Tax      benefit of loss carry-forwards and other tax credits  |   | $                      | 48,384  |   |                   | $      | 28,247 |   |
| Programming      rights                                        |   |                   | 3,119   |   |                   |   | 3,734 |   |
| Property,      plant and equipment                             |   |                   | 1,899   |   |                   |   | 1,607 |   |
| Accrued      expense                                           |   |                   | 4,613   |   |                   |   | 4,959 |   |
| Other                                                          |   |                   | 4,684   |   |                   |   | 1,500 |   |
| Gross      deferred tax assets                                 |   |                   | 62,699  |   |                   | $      | 40,047 |   |
| Valuation      allowance                                       |   |                   | (47,392 | )      |                   |   | (28,896 | ) |
| Net      deferred tax assets                                   |   |                   | 15,307  |   |                   | $      | 11,151 |   |
|                                                           |   |                   |    |   |                   |   |   |   |
| Liabilities:                                                   |   |                   |    |   |                   |   |   |   |
| Broadcast      licenses, trademarks and customer relationships |   | $                      | (86,670 | )      |                   | $      | (67,606 | ) |
| Property,      plant and equipment                             |   |                   | (6,219  | )      |                   |   | (3,688 | ) |
| Temporary      difference due to timing                        |   |                   | (3,714  | )      |                   |   | (7,694 | ) |
| Total      deferred tax liabilities                            |   | $                      | (96,603 | )      |                   | $      | (78,988 | ) |
| Net      deferred income tax liability                         |   | $                      | (81,296 | )      |                   | $      | (67,837 | ) |

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|                                      |   | December      31, 2008 |    |   | December      31, 2007 |   |
|-------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                      |   |                   |    |   |                   |   |
| Current      deferred tax assets          |   | $                      | 5,898   |   |                   | $      | 3,652 |   |
| Non-current      deferred tax assets      |   |                   | 2,109   |   |                   |   | 2,123 |   |
|                                      |   |                   | 8,007   |   |                   | $      | 5,775 |   |
|                                      |   |                   |    |   |                   |   |   |   |
| Current      deferred tax liabilities     |   |                   | (177    | )      |                   |   | (272 | ) |
| Non-current      deferred tax liabilities |   |                   | (89,126 | )      |                   |   | (73,340 | ) |
|                                      |   | $                      | (89,303 | )      |                   | $      | (73,612 | ) |
|                                      |   |                   |    |   |                   |   |   |   |
| Net      deferred income tax liability    |   | $                      | (81,296 | )      |                   | $      | (67,837 | ) |

|                               |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|
| Balance      at December 31, 2007  |   | $      | 28,896 |   |
| Charged      to costs and expenses |   |   | 7,192  |   |
| Charged      to other accounts     |   |   | 11,880 |   |
| Foreign      exchange              |   |   | (576   | )      |
| Balance      at December 31, 2008  |   | $      | 47,392 |   |

| Year                |   | 2009   |   |   | 2010   |   |   | 2011   |   |   | 2012  |   |   | 2013   |   |   | Indefinite |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|--------|--------|--------|--------|------------|--------|
| Austria             |   |   | -      |   |   |   | -      |   |   |   | -     |   |   |   | -      |   |       |   | - |   |   |   | 12,472 |   |
| Bulgaria            |   |   | -      |   |   |   | -      |   |   |   | -     |   |   |   | 8,581  |   |       |   | 10,653 |   |   |   | - |   |
| Croatia             |   |   | -      |   |   |   | 442    |   |   |   | 9,330 |   |   |   | 25,877 |   |       |   | 14,479 |   |   |   | - |   |
| Czech Republic |   |   | 1,548  |   |   |   | 2,904  |   |   |   | 29    |   |   |   | 46     |   |       |   | 14 |   |   |   | - |   |
| Slovenia            |   |   | -      |   |   |   | -      |   |   |   | -     |   |   |   | -      |   |       |   | - |   |   |   | 11,880 |   |
| Ukraine             |   |   | -      |   |   |   | -      |   |   |   | -     |   |   |   | -      |   |       |   | - |   |   |   | 17,412 |   |
| Cyprus              |   |   | -      |   |   |   | -      |   |   |   | -     |   |   |   | -      |   |       |   | - |   |   |   | 361 |   |
| Romania             |   |   | -      |   |   |   | -      |   |   |   | -     |   |   |   | -      |   |       |   | 181 |   |   |   | - |   |
| Total               |   |   | 1,548  |   |   |   | 3,346  |   |   |   | 9,359 |   |   |   | 34,504 |   |       |   | 25,327 |   |   |   | 42,125 |   |

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|                                                                   |   |   |   |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|
| Balance      at December 31, 2007                                      |   | $      | 1,723  |   |
| Increases      for tax positions taken during a prior period           |   |   | 1,130  |   |
| Increases      for tax positions taken during the current period       |   |   | 1,999  |   |
| Decreases      resulting from the expiry of the statute of limitations |   |   | (495   | )      |
| Other                                                                  |   |   | (54    | )      |
| Balance      at December 31, 2008                                      |   | $      | 4,303  |   |

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| Country              | Year |
|----------------------|------|
| Bulgaria             | 2002 |
| Croatia              | 2005 |
| Czech Republic  | 2006 |
| Germany              | 2005 |
| Netherlands          | 2007 |
| Romania              | 2004 |
| Slovak      Republic | 2003 |
| Slovenia             | 2003 |
| Ukraine              | 2005 |
| United      States   | 2005 |

|                                                 |   | For      the Years Ended December 31, |   |
|------------------------------------------------------|--------|---------------------------------------|--------|
|                                                 |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                 |   |                                  |   |   |   |   |   |   |   |
| Interest      on Senior Notes                        |   | $                                     | 43,962 |   |   | $ | 41,549 |   |   | $ | 39,032 |   |
| Interest      on Convertible Notes                   |   |                                  | 13,439 |   |   |   | - |   |   |   | - |   |
| Loss      on redemption of Senior Notes              |   |                                  | -      |   |   |   | 6,853 |   |   |   | - |   |
| Amortization      of capitalized debt issuance costs |   |                                  | 4,976  |   |   |   | 2,871 |   |   |   | 2,478 |   |
| Interest      on capital leases                      |   |                                  | 384    |   |   |   | 336 |   |   |   | 304 |   |
| Other      interest and fees                         |   |                                  | 5,714  |   |   |   | 3,327 |   |   |   | 2,398 |   |
| Total      interest expense                          |   | $                                     | 68,475 |   |   | $ | 54,936 |   |   | $ | 44,212 |   |

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|                                                    |   | For      the Years Ended December 31, |   |
|---------------------------------------------------------|--------|---------------------------------------|--------|
|                                                    |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
| Stock-based      compensation charged under SFAS 123(R) |   |                                  | 6,107  |   |   |   | 5,734 |   |   |   | 3,575 |   |
| Income      tax benefit recognized                      |   |                                  | (641   | ) |   |   | (479 | ) |   |   | (482 | ) |

|   | · | Expected forfeitures.      FAS 123(R) requires that compensation cost only be calculated on      those instruments that are expected to vest in the future. The number of      options that actually vest will usually differ from the total number      issued because employees forfeit options when they do not meet the service      conditions stipulated in the agreement. Since all forfeitures result from      failure to meet service conditions, we have calculated the forfeiture rate      by reference to the historical employee turnover  rate. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Expected volatility.      Expected volatility has been calculated based on an analysis of the      historical stock price volatility of the company and its peers for the      preceeding period corresponding to the options’ expected    life. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Expected term. The      expected term of options granted has been calculated following the      “shortcut” method as outlined in section D 2, question 6 of SEC Staff      Accounting Bulletin No. 107 “Share Based      Compensation” because our options meet the definition of “plain vanilla”      therein. Since insufficient data about holder exercise behavior is      available to make estimates of expected term, we have continued to apply      the shortcut method in accordance with SAB110. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                             |   | For      the Years Ended December 31, |   |
|----------------------------------|--------|---------------------------------------|--------|
|                             |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
| Risk-free      interest rate     |   |                                  | 1.51   | % |   |   | 3.62 | % |   |   | 4.76 | % |
| Expected      term (years)       |   |                                  | 4.60   |   |   |   | 4.93 |   |   |   | 5.89 |   |
| Expected      volatility         |   |                                  | 45.18  | % |   |   | 36.15 | % |   |   | 43.44 | % |
| Dividend      yield              |   |                                  | 0      | % |   |   | 0 | % |   |   | 0 | % |
| Weighted-average      fair value |   | $                                     | 12.31  |   |   | $ | 40.48 |   |   | $ | 31.67 |   |

|                                  |   | 2008   |      |   | 2007                                            |   |   | 2006   |   |
|---------------------------------------|--------|--------|-----------|--------|-------------------------------------------------|--------|--------|--------|--------|
|                                  |   | Shares |      |   | Weighted      Average Exercise Price (US$) |   |   | Shares |   |   | Weighted      Average Exercise Price (US$) |   |   | Shares |   |   | Weighted      Average Exercise Price (US$) |   |
| Outstanding      at beginning of year |   |   | 1,176,117 |   |                                            | $      | 56.72  |   |   |   | 1,288,575 |   |   | $ | 35.51 |   |   |   | 1,118,275 |   |   | $ | 22.23 |   |
| Awards      granted                   |   |   | 342,000   |   |                                            |   | 35.92  |   |   |   | 246,000 |   |   |   | 108.48 |   |   |   | 388,500 |   |   |   | 65.19 |   |
| Awards      exercised                 |   |   | (21,075   | )      |                                            |   | 57.97  |   |   |   | (315,833 | ) |   |   | 12.98 |   |   |   | (195,450 | ) |   |   | 18.54 |   |
| Awards      expired                   |   |   | -         |   |                                            |   | -      |   |   |   | (20,000 | ) |   |   | 23.00 |   |   |   | - |   |   |   | - |   |
| Awards      forfeited                 |   |   | (58,000   | )      |                                            |   | 80.39  |   |   |   | (22,625 | ) |   |   | 51.79 |   |   |   | (22,750 | ) |   |   | 40.38 |   |
| Outstanding      at end of year       |   |   | 1,439,042 |   |                                            | $      | 50.81  |   |   |   | 1,176,117 |   |   | $ | 56.72 |   |   |   | 1,288,575 |   |   | $ | 35.51 |   |

|                          |                 |   | Options      outstanding |      |
|-------------------------------|----------------------|--------|--------------------------|-----------|
| Range      of exercise prices |                 |   | Shares                   |      |   | Average      remaining contractual life (years) |   |   | Aggregate      intrinsic value (US$) |   |   | Weighted      average exercise price (US$) |   |
| $                             | 0.01      - 20.00    |   |                     |      | 261,000 |   |   |   | 4.79 |   |   |   | 1,458 |   |   |   | 16.13 |   |
| $                             | 20.01      - 40.00   |   |                     |      | 412,042 |   |   |   | 6.84 |   |   |   | - |   |   |   | 23.78 |   |
| $                             | 40.01      - 60.00   |   |                     |      | 255,500 |   |   |   | 6.93 |   |   |   | - |   |   |   | 52.67 |   |
| $                             | 60.01      - 80.00   |   |                     |      | 241,625 |   |   |   | 5.94 |   |   |   | - |   |   |   | 67.83 |   |
| $                             | 80.01      - 100.00  |   |                     |      | 38,125 |   |   |   | 3.82 |   |   |   | - |   |   |   | 90.22 |   |
| $                             | 100.01      - 120.00 |   |                     |      | 230,750 |   |   |   | 6.33 |   |   |   | - |   |   |   | 111.88 |   |
| Total                         |                 |   |                     | 1,439,042 |   |   |   | 6.17 |   |   |   | 1,458 |   |   |   | 50.81 |   |
| Expected      to vest         |                 |   |                     | 1,323,370 |   |   |   | 6.10 |   |   |   | 1,414 |   |   |   | 50.33 |   |

----

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|                         |                 |   | Options      exercisable |    |
|------------------------------|----------------------|--------|--------------------------|---------|
| Range      of exercise price |                 |   | Shares                   |    |   | Average      remaining contractual life (years) |   |   | Aggregate      intrinsic value (US$) |   |   | Weighted      average exercise price (US$) |   |
| $                            | 0.01      - 20.00    |   |                     |    | 261,000 |   |   |   | 4.79 |   |   |   | 1,458 |   |   |   | 16.13 |   |
| $                            | 20.01      - 40.00   |   |                     |    | 127,542 |   |   |   | 5.60 |   |   |   | - |   |   |   | 26.21 |   |
| $                            | 40.01      - 60.00   |   |                     |    | 161,375 |   |   |   | 6.84 |   |   |   | - |   |   |   | 51.55 |   |
| $                            | 60.01      - 80.00   |   |                     |    | 85,375 |   |   |   | 7.54 |   |   |   | - |   |   |   | 71.16 |   |
| $                            | 80.01      - 100.00  |   |                     |    | 38,125 |   |   |   | 3.82 |   |   |   | - |   |   |   | 90.22 |   |
| $                            | 100.01      - 120.00 |   |                     |    | 49,813 |   |   |   | 6.41 |   |   |   | - |   |   |   | 113.56 |   |
| Total                        |                 |   |                     | 723,230 |   |   |   | 5.78 |   |   |   | 1,458 |   |   |   | 42.93 |   |

|                                                                   |   | For      the Years Ended December 31, |     |
|------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                   |   | 2008                                  |     |   | 2007 |   |   | 2006 |   |
| Net      (loss) / income available for common shareholders             |   | $                                     | (255,544 | ) |   | $ | 88,568 |   |   | $ | 20,424 |   |
|                                                                   |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Weighted      average outstanding shares of common stock (000’s) |   |                                  | 42,328   |   |   |   | 41,384 |   |   |   | 40,027 |   |
| Dilutive      effect of employee stock options (000’s)           |   |                                  | -        |   |   |   | 449 |   |   |   | 573 |   |
| Common      stock and common stock equivalents                         |   |                                  | 42,328   |   |   |   | 41,833 |   |   |   | 40,600 |   |
|                                                                   |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Earnings      per share:                                               |   |                                  |     |   |   |   |   |   |   |   |   |   |
| Basic                                                                  |   | $                                     | (6.04    | ) |   | $ | 2.14 |   |   | $ | 0.51 |   |
| Diluted                                                                |   | $                                     | (6.04    | ) |   | $ | 2.12 |   |   | $ | 0.50 |   |

----

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| · | expenses      presented as corporate operating costs in our Consolidated Statements of      Operations and ComprehensiveIncome; |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | stock-based      compensation charges; |
|--------|----------------------------------------|

| · | foreign      currency exchange gains and losses; |
|--------|--------------------------------------------------|

| · | changes      in fair value of derivatives; and |
|--------|------------------------------------------------|

| · | certain      unusual or infrequent items (e.g., extraordinary gains and losses,      impairments of assets orinvestments). |
|--------|----------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                       |   | SEGMENT      FINANCIAL INFORMATION    |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                                                                                                                                       |   | For      the Years Ended December 31, |      |
|                                                                                                                                                                                       |   | Segment      Net Revenues (1)         |      |   | Segment      EBITDA |   |
|                                                                                                                                                                                       |   | 2008                                  |      |   | 2007 |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Country                                                                                                                                                                                    |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bulgaria      (TV2, RING TV) (2)                                                                                                                                                           |   | $                                     | 1,263     |   |   | $ | - |   |   | $ | - |   |   | $ | (10,185 | ) |   | $ | - |   |   | $ | - |   |
| Croatia      (NOVA TV)                                                                                                                                                                     |   |                                  | 54,651    |   |   |   | 37,193 |   |   |   | 22,310 |   |   |   | (5,415 | ) |   |   | (13,882 | ) |   |   | (14,413 | ) |
| Czech Republic      (3)                                                                                                                                                               |   |                                  | 376,546   |   |   |   | 279,237 |   |   |   | 208,387 |   |   |   | 208,655 |   |   |   | 156,496 |   |   |   | 100,488 |   |
| Romania      (4)                                                                                                                                                                           |   |                                  | 274,627   |   |   |   | 215,402 |   |   |   | 148,616 |   |   |   | 111,783 |   |   |   | 93,075 |   |   |   | 65,860 |   |
| Slovak Republic      (TV MARKIZA)                                                                                                                                                     |   |                                  | 132,693   |   |   |   | 110,539 |   |   |   | 73,420 |   |   |   | 50,228 |   |   |   | 41,532 |   |   |   | 20,805 |   |
| Slovenia      (POP TV and KANAL A)                                                                                                                                                         |   |                                  | 80,696    |   |   |   | 69,647 |   |   |   | 54,534 |   |   |   | 25,413 |   |   |   | 22,767 |   |   |   | 19,842 |   |
| Ukraine      (STUDIO 1+1)                                                                                                                                                                  |   |                                  | 96,738    |   |   |   | 125,323 |   |   |   | 96,413 |   |   |   | (32,944 | ) |   |   | 27,000 |   |   |   | 29,973 |   |
| Ukraine      (KINO, CITI) (5)                                                                                                                                                              |   |                                  | 2,720     |   |   |   | 1,515 |   |   |   | 726 |   |   |   | (1,855 | ) |   |   | (3,536 | ) |   |   | (1,795 | ) |
| Total      Segment Data                                                                                                                                                                    |   | $                                     | 1,019,934 |   |   | $ | 838,856 |   |   | $ | 604,406 |   |   | $ | 345,680 |   |   | $ | 323,452 |   |   | $ | 220,760 |   |
| Reconciliation      to Consolidated Statement of Operations and Comprehensive      Income:                                                                                                 |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      Net Revenues / (Loss) / income before provision for income taxes, minority      interest, equity in income of unconsolidated affiliates and discontinued      operations |   | $                                     | 1,019,934 |   |   | $ | 838,856 |   |   | $ | 602,646 |   |   | $ | (215,163 | ) |   | $ | 131,027 |   |   | $ | 50,746 |   |
| Corporate      operating costs                                                                                                                                                             |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 49,676 |   |   |   | 55,373 |   |   |   | 34,104 |   |
| Impairment      charge                                                                                                                                                                     |   |                                  |      |   |   |   |   |   |   |   | - |   |   |   | 336,752 |   |   |   | - |   |   |   | 748 |   |
| Unconsolidated      equity affiliates (6)                                                                                                                                                  |   |                                  | -         |   |   |   | - |   |   |   | 1,760 |   |   |   | - |   |   |   | - |   |   |   | (1,292 | ) |
| Depreciation      of station property, plant and equipment                                                                                                                                 |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 51,668 |   |   |   | 32,653 |   |   |   | 25,430 |   |
| Amortization      of broadcast licenses and other intangibles                                                                                                                              |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 35,381 |   |   |   | 24,970 |   |   |   | 18,799 |   |
| Interest      income                                                                                                                                                                       |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | (10,006 | ) |   |   | (5,728 | ) |   |   | (6,359 | ) |
| Interest      expense                                                                                                                                                                      |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 68,475 |   |   |   | 54,936 |   |   |   | 44,212 |   |
| Change      in fair value of derivatives                                                                                                                                                   |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | (6,360 | ) |   |   | 3,703 |   |   |   | 12,539 |   |
| Foreign      currency exchange loss, net                                                                                                                                                   |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 37,877 |   |   |   | 34,409 |   |   |   | 44,892 |   |
| Other      income                                                                                                                                                                          |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | (2,620 | ) |   |   | (7,891 | ) |   |   | (3,059 | ) |
| Total      Segment Data                                                                                                                                                                    |   | $                                     | 1,019,934 |   |   | $ | 838,856 |   |   | $ | 604,406 |   |   | $ | 345,680 |   |   | $ | 323,452 |   |   | $ | 220,760 |   |

| (1)      All net revenues are derived from external customers.  There are      no inter-segmental revenues.                                                                                                                                                                                                                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)      We acquired our Bulgaria operations on August 1, 2008.                                                                                                                                                                                                                                                                                                                                            |
| (3)      Our Czech Republic operations comprise TV NOVA, NOVA SPORT and NOVA      CINEMA, which was launched in December 2007.                                                                                                                                                                                                                                                                        |
| (4)      Romanian channels are PRO TV, PRO CINEMA, ACASA, SPORT.RO, MTV ROMANIA and      PRO TV INTERNATIONAL for the years ended December 31, 2008 and 2007.      SPORT.RO was acquired on February 20, 2007 and MTV ROMANIA was acquired on      December 12, 2007. For the year ended December 31, 2006 Romanian      channels  were PRO TV, PRO CINEMA, ACASA and PRO TV      INTERNATIONAL. |
| (5)      We acquired our Ukraine (KINO, CITI) operations in January      2006.                                                                                                                                                                                                                                                                                                                             |
| (6)      Unconsolidated equity affiliates were STS and Markiza in the      Slovak Republic until January 23,2006.                                                                                                                                                                                                                                                                                     |

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|                                                                                                                            |   | For      the Years Ended December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
| Depreciation      of station property, plant & equipment and amortization of broadcast      licenses and other intangibles: |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                            |   |                                  |   |   |   |   |   |   |   |
| Bulgaria                                                                                                                        |   | $                                     | 3,421  |   |   | $ | - |   |   | $ | - |   |
| Croatia                                                                                                                         |   |                                  | 6,198  |   |   |   | 3,630 |   |   |   | 2,920 |   |
| Czech Republic                                                                                                             |   |                                  | 41,165 |   |   |   | 28,810 |   |   |   | 24,274 |   |
| Romania                                                                                                                         |   |                                  | 15,148 |   |   |   | 10,511 |   |   |   | 5,811 |   |
| Slovak Republic                                                                                                            |   |                                  | 10,988 |   |   |   | 6,784 |   |   |   | 4,070 |   |
| Slovenia                                                                                                                        |   |                                  | 5,526  |   |   |   | 4,650 |   |   |   | 4,004 |   |
| Ukraine      (STUDIO 1+1)                                                                                                       |   |                                  | 4,490  |   |   |   | 3,148 |   |   |   | 3,216 |   |
| Ukraine      (KINO, CITI)                                                                                                       |   |                                  | 113    |   |   |   | 90 |   |   |   | 111 |   |
| Total                                                                                                                           |   | $                                     | 87,049 |   |   | $ | 57,623 |   |   | $ | 44,406 |   |
|                                                                                                                            |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      to Consolidated Statement of Operations:                                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Unconsolidated      equity affiliates                                                                                           |   |                                  | -      |   |   |   | - |   |   |   | (177 | ) |
|                                                                                                                            |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Total      consolidated depreciation and amortization                                                                           |   | $                                     | 87,049 |   |   | $ | 57,623 |   |   | $ | 44,229 |   |
| Represented      as follows:                                                                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Depreciation      of station property, plant & equipment                                                                    |   |                                  | 51,668 |   |   |   | 32,653 |   |   |   | 25,430 |   |
| Amortization      of broadcast licenses and other intangibles                                                                   |   |                                  | 35,381 |   |   |   | 24,970 |   |   |   | 18,799 |   |

|                      |   | For      the Years Ended December 31, |   |
|---------------------------|--------|---------------------------------------|--------|
| Capital      expenditure: |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                      |   |                                  |   |   |   |   |   |   |   |
| Corporate                 |   | $                                     | 708    |   |   | $ | 185 |   |   | $ | 1,990 |   |
| Bulgaria                  |   |                                  | 3,607  |   |   |   | - |   |   |   | - |   |
| Croatia                   |   |                                  | 7,417  |   |   |   | 6,836 |   |   |   | 2,114 |   |
| Czech Republic       |   |                                  | 19,847 |   |   |   | 35,903 |   |   |   | 16,608 |   |
| Romania                   |   |                                  | 18,343 |   |   |   | 16,981 |   |   |   | 24,363 |   |
| Slovak Republic      |   |                                  | 15,062 |   |   |   | 8,954 |   |   |   | 6,777 |   |
| Slovenia                  |   |                                  | 10,809 |   |   |   | 8,492 |   |   |   | 2,506 |   |
| Ukraine      (STUDIO 1+1) |   |                                  | 2,872  |   |   |   | 2,592 |   |   |   | 6,029 |   |
| Ukraine      (KINO, CITI) |   |                                  | -      |   |   |   | - |   |   |   | - |   |
| Total                     |   | $                                     | 78,665 |   |   | $ | 79,943 |   |   | $ | 60,387 |   |

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|                                               |   | As      at December 31, |      |
|----------------------------------------------------|--------|-------------------------|-----------|
| Total      assets (1):                             |   | 2008                    |      |   | 2007 |   |
|                                               |   |                    |      |   |   |   |
| Bulgaria                                           |   | $                       | 107,805   |   |   | $ | - |   |
| Croatia                                            |   |                    | 50,431    |   |   |   | 44,787 |   |
| Czech Republic                                |   |                    | 1,306,997 |   |   |   | 1,429,256 |   |
| Romania                                            |   |                    | 387,845   |   |   |   | 360,144 |   |
| Slovak Republic                               |   |                    | 240,899   |   |   |   | 203,302 |   |
| Slovenia                                           |   |                    | 93,022    |   |   |   | 89,984 |   |
| Ukraine      (STUDIO 1+1)                          |   |                    | 118,647   |   |   |   | 90,064 |   |
| Ukraine      (KINO, CITI)                          |   |                    | 10,943    |   |   |   | 11,469 |   |
| Total      segment assets                          |   | $                       | 2,316,589 |   |   | $ | 2,229,006 |   |
|                                               |   |                    |      |   |   |   |   |   |
| Reconciliation      to Consolidated Balance Sheet: |   |                    |      |   |   |   |   |   |
| Corporate                                          |   |                    | 86,660    |   |   |   | 103,044 |   |
| Assets      held for sale(1)                       |   |                    | 5,484     |   |   |   | 6,385 |   |
| Total      assets                                  |   | $                       | 2,408,733 |   |   | $ | 2,338,435 |   |

|                         |   | As      at December 31, |    |
|------------------------------|--------|-------------------------|---------|
| Long-lived      assets (2):  |   | 2008                    |    |   | 2007 |   |
|                         |   |                    |    |   |   |   |
| Bulgaria                     |   | $                       | 6,404   |   |   | $ | - |   |
| Croatia                      |   |                    | 13,450  |   |   |   | 12,144 |   |
| Czech Republic          |   |                    | 61,463  |   |   |   | 58,809 |   |
| Romania                      |   |                    | 52,193  |   |   |   | 44,808 |   |
| Slovak Republic         |   |                    | 40,025  |   |   |   | 29,345 |   |
| Slovenia                     |   |                    | 24,932  |   |   |   | 21,524 |   |
| Ukraine      (STUDIO 1+1)    |   |                    | 7,083   |   |   |   | 7,380 |   |
| Ukraine      (KINO, CITI)    |   |                    | -       |   |   |   | - |   |
| Total      long-lived assets |   | $                       | 205,550 |   |   | $ | 174,010 |   |

| Reconciliation      to Consolidated Balance Sheet:                                                                                              |   |   |    |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Corporate                                                                                                                                       |   |   | 1,117   |   |   |   | 1,298 |   |
| Total      Long-lived assets                                                                                                                    |   | $      | 206,667 |   |   | $      | 175,308 |   |
| (1)      Assets held for sale include the assets of the CITI channel, which has      been recognized as a discontinued operation in allperiods. |   |
| (2)      Segment assets exclude any inter-company investments, loans, payables and      receivables.                                            |   |

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|                                            |   | For      the Years Ended December 31, |   |
|-------------------------------------------------|--------|---------------------------------------|--------|
|                                            |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                            |   |                                  |   |   |   |   |   |   |   |
| Ukraine(KINO,      CITI)                        |   |                                  |   |   |   |   |   |   |   |
| Pre      tax loss from discontinued operations  |   | $                                     | (3,849 | ) |   | $ | (4,509 | ) |   | $ | (2,354 | ) |
| Tax      on result of discontinued operations   |   |                                  | 64     |   |   |   | 29 |   |   |   | - |   |
|                                            |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Czech Republic                             |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Tax      on disposal of discontinued operations |   |                                  | -      |   |   |   | - |   |   |   | (4,863 | ) |
| Net      loss from discontinued operations      |   | $                                     | (3,785 | ) |   | $ | (4,480 | ) |   | $ | (7,217 | ) |

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|                                                                                           |   | December      31, 2008 |    |
|------------------------------------------------------------------------------------------------|--------|------------------------|---------|
| Bulgaria                                                                                       |   | $                      | 53,040  |   |
| Croatia                                                                                        |   |                   | 3,369   |   |
| Czech Republic                                                                            |   |                   | 100,141 |   |
| Romania                                                                                        |   |                   | 69,874  |   |
| Slovak Republic                                                                           |   |                   | 28,403  |   |
| Slovenia                                                                                       |   |                   | 9,249   |   |
| Ukraine      (STUDIO 1+1)                                                                      |   |                   | 15,527  |   |
| Ukraine      (KINO, CITI)                                                                      |   |                   | 864     |   |
| Total      (1)                                                                                 |   | $                      | 280,467 |   |
| (1)      Of the amounts in the table above, US$ 213.7 million is payable within one      year. |   |

|                     |   | December      31, 2008 |   |
|--------------------------|--------|------------------------|--------|
| 2009                     |   | $                      | 6,514  |   |
| 2010                     |   |                   | 3,961  |   |
| 2011                     |   |                   | 1,815  |   |
| 2012                     |   |                   | 1,284  |   |
| 2013                     |   |                   | 2,452  |   |
| 2014      and thereafter |   |                   | 2,526  |   |
| Total                    |   | $                      | 18,552 |   |

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| d) | Other |
|----|-------|

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| Bulgaria        | The      license of TV2 expires in February 2010.                                                                                                                                                                                                                                                                                                                  |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Croatia              | The      license of NOVA TV (Croatia) expires in March 2010.                                                                                                                                                                                                                                                                                                       |
| Czech Republic  | The      license of TV NOVA (Czech Republic) expires in January 2017. The NOVA      SPORT license expires in September 2020. The satellite license for      NOVA CINEMA expires in November 2019.                                                                                                                                                        |
| Romania              | Licenses      expire on dates ranging from April 2009 to May 2017.                                                                                                                                                                                                                                                                                                 |
| Slovak Republic | The      license of TV MARKIZA expires in September 2019.                                                                                                                                                                                                                                                                                                     |
| Slovenia             | The      licenses of POP TV and KANAL A expire in August 2012.                                                                                                                                                                                                                                                                                                     |
| Ukraine              | The      15-hour prime time and off prime time license of STUDIO 1+1 expires in      December 2016. The license to broadcast for the remaining nine hours in      off prime time expires in July 2014. The satellite license expires in      April 2018. Licenses used for the KINO and CITI channels expire on dates      ranging from March 2010 to April 2016.  |

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|                                                                                                                                                               |   | For      the Year ended December 31, 2008     |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                                                                                                               |   | First      Quarter(Unaudited)                 |    |   | Second      Quarter(Unaudited) |   |   | Third      Quarter(Unaudited) |   |   | Fourth      Quarter(Unaudited) |   |
|                                                                                                                                                               |   | (US$      000’s, except per share data) |    |
| Consolidated      Statement of Operations data:                                                                                                                    |   |                                          |    |   |   |   |   |   |   |   |   |   |
| Net      revenues                                                                                                                                                  |   | $                                             | 223,023 |   |   | $ | 304,808 |   |   | $ | 200,603 |   |   |   | 291,500 |   |
| Cost      of revenue                                                                                                                                               |   |                                          | 146,886 |   |   |   | 174,812 |   |   |   | 158,862 |   |   |   | 189,903 |   |
| Operating      income                                                                                                                                              |   |                                          | 45,474  |   |   |   | 98,743 |   |   |   | 7,156 |   |   |   | (279,170 | )  |
| Net      income / (loss) from continuing operations                                                                                                                |   |                                          | 15,645  |   |   |   | 68,361 |   |   |   | (13,726 | )  |   |   | (322,039 | ) |
| Net      income / (loss) from discontinued operations                                                                                                              |   |                                          | (750    | ) |   |   | (758 | ) |   |   | (1,027 | )  |   |   | (1,250 | ) |
| Net      income / (loss)                                                                                                                                           |   | $                                             | 14,895  |   |   | $ | 67,604 |   |   | $ | (14,754 | ) |   | $ | (323,289 | ) |
|                                                                                                                                                               |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income / (loss) per share:                                                                                                                                |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      EPS                                                                                                                                                     |   | $                                             | 0.35    |   |   | $ | 1.60 |   |   | $ | (0.35 | ) |   | $ | (7.64 | ) |
| Effect      of dilutive securities                                                                                                                                 |   |                                          | -       |   |   |   | (0.02 | ) |   |   | - |   |   |   | - |   |
| Diluted      EPS                                                                                                                                                   |   | $                                             | 0.35    |   |   | $ | 1.58 |   |   | $ | (      0.35 | ) |   | $ | (7.64 | ) |
| Note:      The amounts shown above reflect the reclassification of the results of the      CITI channel as a discontinued operation for all periods      presented |   |

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|                                                                                                                                                                |   | For      the Year ended December 31, 2007     |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                                                                                                                |   | First      Quarter(Unaudited)                 |    |   | Second      Quarter(Unaudited) |   |   | Third      Quarter(Unaudited) |   |   | Fourth      Quarter(Unaudited) |   |
|                                                                                                                                                                |   | (US$      000’s, except per share data) |    |
| Consolidated      Statement of Operations data:                                                                                                                     |   |                                          |    |   |   |   |   |   |   |   |   |   |
| Net      revenues                                                                                                                                                   |   | $                                             | 147,712 |   |   | $ | 215,992 |   |   | $ | 174,600 |   |   | $ | 300,552 |   |
| Cost      of revenue                                                                                                                                                |   |                                          | 103,079 |   |   |   | 125,353 |   |   |   | 107,399 |   |   |   | 165,881 |   |
| Operating      income                                                                                                                                               |   |                                          | 14,237  |   |   |   | 67,653 |   |   |   | 29,371 |   |   |   | 99,195 |   |
| Net      income / (loss) from continuing operations                                                                                                                 |   |                                          | 709     |   |   |   | 35,670 |   |   |   | (17,749 | ) |   |   | 74,418 |   |
| Net      income / (loss) from discontinued operations                                                                                                               |   |                                          | (959    | ) |   |   | (1,080 | ) |   |   | (1,014 | ) |   |   | (1,427 | ) |
| Net      income / (loss)                                                                                                                                            |   |                                          | (250    | ) |   |   | 34,590 |   |   |   | (18,763 | ) |   |   | 72,991 |   |
|                                                                                                                                                                |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income / (loss) per share:                                                                                                                                 |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      EPS                                                                                                                                                      |   | $                                             | (0.01   | ) |   | $ | 0.84 |   |   | $ | (0.45 | ) |   | $ | 1.73 |   |
| Effect      of dilutive securities                                                                                                                                  |   |                                          | -       |   |   |   | (0.01 | ) |   |   | - |   |   |   | (0.02 | ) |
| Diluted      EPS                                                                                                                                                    |   | $                                             | (0.01   | ) |   | $ | 0.83 |   |   | $ | (0.45 | ) |   | $ | 1.71 |   |
| Note:      The amounts shown above reflect the reclassification of the results of the      CITI channel as a discontinued operation for all periods      presented. |   |

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ANG

NTR

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ORMA

IRECT

XECUTI

CURI

RTAI

INCIP

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HIBIT

|   | · | Report      of Independent Registered Public Accounting  Firm; |
|--------|--------|----------------------------------------------------------------|

|   | · | Consolidated      Balance Sheets as of December 31, 2008 and2007; |
|--------|--------|-------------------------------------------------------------------|

|   | · | Consolidated      Statements of Operations and Comprehensive Income for the years ended      December 31, 2008, 2007 and 2006; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | Consolidated      Statement of Shareholders’ Equity for the years ended December 31, 2008,      2007 and 2006; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Consolidated      Statements of Cash Flows for the years ended December 31, 2008, 2007 and      2006; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Notes      to Consolidated FinancialStatements. |
|--------|--------|-------------------------------------------------|

| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                           |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                  |
| 3.01*               |   | Memorandum      of Association (incorporated by reference to Exhibit 3.01 to the Company’s      Registration Statement No. 3380344 on Form S-1, filed June 17,      1994).                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                  |
| 3.02                |   | Bye-Laws      of Central European Media Enterprises Ltd., as amended and restated on      June 3, 2008.                                                                                                                                                                                               |
|                |   |                                                                                                                                                                                                                                                                                                  |
| 3.03*               |   | Memorandum      of Increase of Share Capital (incorporated by reference to Exhibit 3.03 to      Amendment No. 1 to the Company’s Registration Statement No. 33-80344 on      Form S-1, filed August 19, 1994).                                                                                  |
|                |   |                                                                                                                                                                                                                                                                                                  |
| 3.04*               |   | Memorandum      of Reduction of Share Capital (incorporated by reference to Exhibit 3.04      to Amendment No. 2 to the Company’s Registration Statement No. 33-80344 on      Form S-1, filed September 14, 1994).                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                  |
| 3.05*               |   | Certificate      of Deposit of Memorandum of Increase of Share Capital executed by the      Registrar of Companies on May 20, 1997 (incorporated by reference to      Exhibit 3.1 to the Company’s Quarterly Report on Form 10­-Q for the      quarterly period ended September 30, 1997). |
|                |   |                                                                                                                                                                                                                                                                                                  |
| 4.01*               |   | Specimen      Class A Common Stock Certificate (incorporated by reference to Exhibit      4.01 to Amendment No. 1 to the Company’s Registration Statement No.      33-80344 on Form S-1, filed August 19,1994).                                                                                 |

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| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.02*               |   | Indenture      among Central European Media Enterprises Ltd. as Issuer, Central European      Media Enterprises N.V. and CME Media Enterprises B.V. as Subsidiary      Guarantors, BNY Corporate Trustee Services Limited as Trustee, The Bank of      New York as Security Trustee, Principal Paying Agent and Transfer Agent      and The Bank of New York (Luxembourg) S.A. as Registrar, Luxembourg      Transfer Agent and Luxembourg Paying Agent, dated May 16, 2007      (incorporated by reference to Exhibit 10.65 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended June 30,      2007). |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.03*               |   | Registration      Rights Agreement among Central European Media Enterprises Ltd., Lehman      Brothers Inc., J.P. Morgan Securities Inc., Deutsche Bank Securities Inc.,      BNP Paribas and ING Bank N.V., London Branch, dated March 10, 2008      (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended March 31,      2008).                                                                                                                                                                                                                             |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.04*               |   | Indenture      among Central European Media Enterprises Ltd., Central European Media      Enterprises N.V., CME Media Enterprises B.V. and The Bank of New York,      dated March 10, 2008 (incorporated by reference to Exhibit 4.2 to the      Company’s Quarterly Report on Form 10-Q for the quarterly period ended      March 31, 2008).                                                                                                                                                                                                                                                                                        |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.01+              |   | Central      European Media Enterprises Ltd. 1995 Amended and Restated 2005 Stock      Incentive Plan, as amended on April 25, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.02*              |   | Agreement      between CME Media Enterprises B.V. and the Tax and Customs Administration      of The Netherlands, dated March 24, 2004 (incorporated by reference to the      Company’s Quarterly Report on Form 10-Q for the quarterly period ended      March 31, 2004).                                                                                                                                                                                                                                                                                                                                                           |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.03*              |   | Pro      TV S.A. put-option between CME Romania B.V., Adrian Sarbu and Rootland      Trading Ltd. (incorporated by reference to the Company’s Quarterly Report      on Form 10-Q for the quarterly period ended September 30,      2004).                                                                                                                                                                                                                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.04*              |   | MPI      S.A. put-option between CME Romania B.V., Adrian Sarbu and Rootland      Trading Ltd. (incorporated by reference to the Company’s Quarterly Report      on Form 10-Q for the quarterly period ended September 30,      2004).                                                                                                                                                                                                                                                                                                                                                                                               |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.05*+             |   | Employee      Stock Option Form (incorporated by reference to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended September 30,      2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.06*              |   | Framework      Agreement among CME Media Enterprises B.V., Central European Media      Enterprises Ltd. and PPF (Cyprus) Ltd., dated December 13, 2004      (incorporated by reference to the Company’s Annual Report on Form 10-K for      the period ended December 31, 2004).                                                                                                                                                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.07*              |   | Agreement      on Settlement of Disputes and Transfer of Ownership Interest between      Mr. Peter Kršák and CME Media Enterprises B.V., dated February 24, 2005      (incorporated by reference to the Company’s Annual Report on Form 10-K for      the period ended December 31, 2004).                                                                                                                                                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.08*              |   | Subscription      Agreement between Central European Media Enterprises Ltd. and PPF (Cyprus)      Ltd., dated May 2, 2005 (incorporated by reference to the Company’s      Quarterly Report on Form 10-Q for the quarterly period ended March 30,      2005).                                                                                                                                                                                                                                                                                                                                                                        |

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| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.10*              |   | Deed      of Guarantee among PPF a.s., Central European Media Enterprises Ltd. and      CME Media Enterprises B.V., dated May 2, 2005 (incorporated by reference      to the Company’s Quarterly Report on Form 10-Q for the quarterly period      ended March 30, 2005).                                                                                                               |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.12*              |   | PPF      Group Guarantee among PPF Group N.V., Central European Media Enterprises      Ltd. and CME Media Enterprises B.V., dated May 2, 2005 (incorporated by      reference to the Company’s Quarterly Report on Form 10-Q for the quarterly      period ended March 30, 2005).                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.13*              |   | Indenture      among Central European Media Enterprises Ltd., Central European Media      Enterprises N.V., CME Media Enterprises B.V., J.P. Morgan Chase Bank N.A.,      London Branch and J.P. Morgan Bank Luxembourg S.A., dated May 5, 2005      (incorporated by reference to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended March 30, 2005).     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.14*              |   | €37.5      million Facility Agreement, between Produkcija Plus Storitveno Podjetje      d.o.o., ING Bank N.V., Nova Ljubljanska banka d.d. and Bank Austria      Creditanstalt d.d., dated July 29, 2005 (incorporated by reference to the      Company’s Quarterly Report on Form 10-Q for the quarterly period ended      June 30, 2005).                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.15*              |   | Credit      Line Agreement No. 2644105/LCD between Ceska Sporitelna a.s. and CET 21      spol. s r.o., dated October 27, 2005 (incorporated by reference to the      Company’s Annual Report on Form 10-K for the period ended December 31,      2005).                                                                                                                                 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.16*              |   | Loan      Agreement between Central European Media Enterprises Ltd. and European      Bank for Reconstruction and Development, dated July 21, 2006 (incorporated      by reference to the Company’s Quarterly Report on Form 10-Q for the      quarterly period ended June 30, 2006).                                                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.17*              |   | Pledge      Agreement on Shares in Central European Media Enterprises N.V. among      Central European Media Enterprises Ltd., European Bank for Reconstruction      and Development and Central European Media Enterprises N.V., dated July      21, 2006 (incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarterly period ended June 30,2006). |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.18*              |   | Pledge      of Shares in CME Media Enterprises B.V. among Central European Media      Enterprises N.V., European Bank for Reconstruction and Development and CME      Media Enterprises B.V., dated July 21, 2006 (incorporated by reference to      the Company’s Quarterly Report on Form 10-Q for the quarterly period ended      June 30, 2006).                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.19*              |   | Deed      of Guarantee and Indemnity between Central European Media Enterprises N.V.      and European Bank for Reconstruction and Development, dated July 21, 2006      (incorporated by reference to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended June 30, 2006).                                                                                  |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.20*              |   | Deed      of Guarantee and Indemnity between CME Media Enterprises B.V. and European      Bank for Reconstruction and Development, dated July 21, 2006 (incorporated      by reference to the Company’s Quarterly Report on Form 10-Q for the      quarterly period ended June 30,2006).                                                                                                |

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| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.21*              |   | Contract      Assignment between CME Media      Enterprises B.V., Central European Media Enterprises Ltd. and European      Bank for Reconstruction and Development, dated July 21, 2006 (incorporated      by reference to the Company’s Quarterly Report on Form 10-Q for the      quarterly period ended June 30, 2006).                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.22*+             |   | Amendment      of Employment Agreement (dated March 30, 2004) between Michael Garin,      Chief Executive Officer, and CME Development Corporation, dated July 28,      2006 (incorporated by reference to the Company’s Quarterly Report on Form      10-Q for the quarterly period ended June 30, 2006).                                                                                                                                                                                          |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.23*+             |   | Amended      and Restated Contract of Employment between Marina Williams, Executive      Vice President, and CME Development Corporation, dated October 5, 2006      (incorporated by reference to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended September 30, 2006).                                                                                                                                                                                             |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.24*+             |   | Amended      and Restated Contract of Employment between Wallace Macmillan, Chief      Financial Officer, and CME Development Corporation, dated October 6, 2006      (incorporated by reference to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended September 30, 2006).                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.25*              |   | Subscription      Agreement between Central European Media Enterprises Ltd. and Igor      Kolomoisky, dated August 24, 2007 (incorporated by reference to Exhibit      4.02 to the Company’s Quarterly Report on Form 10-Q for the quarterly      period ended September 30, 2007).                                                                                                                                                                                                                 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.26*              |   | Registration      Rights Agreement between Central European Media Enterprises Ltd. and Igor      Kolomoisky, dated as of August 24, 2007 (incorporated by reference to      Exhibit 4.03 to the Company’s Quarterly Report on Form 10-Q for the      quarterly period ended September 30, 2007).                                                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.27*              |   | Supplemental      Agreement Relating to the Loan Agreement dated July 21, 2006 (as amended      by an amending Letter Agreement dated November 16, 2006) between Central      European Media Enterprises Ltd. and European Bank for Reconstruction and      Development, dated August 22, 2007 (incorporated by reference to Exhibit      10.68 to the Company’s Quarterly Report on Form 10-Q for the quarterly      period ended September 30, 2007).                                             |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.28*              |   | Loan      Agreement between Central European Media Enterprises Ltd. and European      Bank for Reconstruction and Development, dated August 22, 2007      (incorporated by reference to Exhibit 10.69 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended September 30,      2007).                                                                                                                                                                                  |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.29*              |   | Agreement on      Transfer of Participation Interest in Media Invest, spol. s.r.o. between      Mr. Jan Kovàčik      and CME Slovak Holdings B.V., dated July 13, 2007 (incorporated by      reference to Exhibit 10.70 to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended September 30,  2007).                                                                                                                                                          |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.30*              |   | Agreement on      Consideration between Mr. Jan Kovàčik      and CME Slovak Holdings B.V., dated July 13, 2007 (incorporated by      reference to Exhibit 10.71 to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended September 30, 2007).                                                                                                                                                                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.31*              |   | Purchase      Agreement among Central European Media Enterprises Ltd. as Issuer, Central      European Media Enterprises N.V. and CME Media Enterprises B.V. as      Guarantors and J.P. Morgan Securities Ltd., Lehman Brothers International      (Europe) and ING Bank N.V., London Branch as the Initial Purchasers, dated      May 9, 2007 (incorporated by reference to Exhibit 10.63 to the Company’s      Quarterly Report on Form 10-Q for the quarterly period ended June 30,      2007). |

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| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.32*              |   | Amended      and Restated Registration Rights Agreement between Central European Media      Enterprises Ltd. and Testora Ltd., dated May 11, 2007 (incorporated by      reference to Exhibit 10.64 to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended June 30, 2007).                                                                                                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.33*              |   | Sale-Purchase      Contract for Shares in Pro TV S.A. between Rootland Trading Ltd. and CME      Romania B.V., dated June 1, 2007 (incorporated by reference to Exhibit      10.66 to the Company’s Quarterly Report on Form 10-Q for the quarterly      period ended June 30, 2007).                                                                                                                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.34*              |   | Sale-Purchase      Contract for Shares in Media Pro International S.A. between Rootland      Trading Ltd. and CME Romania B.V., dated June 1, 2007 (incorporated by      reference to Exhibit 10.67 to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended June 30, 2007).                                                                                                                                                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.35*+             |   | Employment      Agreement between CME Development Corporation and Michael Garin, dated      March 30, 2004 (incorporated by reference to Exhibit 10.9 to the Company’s      Quarterly Report on Form 10-Q for the quarterly period ended September 30,      2008).                                                                                                                                                                                                                                                                                                                                             |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.35A*+            |   | Letter      of Amendment, dated November 15, 2007, to the Employment Agreement between      CME Development Corporation and Michael Garin, dated March 30,      2004 (incorporated by reference to Exhibit 10.36A to the Company’s      Annual Report on Form 10-K for the fiscal year ended December 31,      2007).                                                                                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.36*+             |   | Contract      of Employment between CME Development Corporation and Adrian Sarbu, dated      December 27, 2007 (incorporated by reference to Exhibit 10.37 to the      Company’s Annual Report on Form 10-K for the fiscal year ended December      31, 2007).                                                                                                                                                                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.37*+             |   | Contract      for the Performance of the Office between Pro TV SA and Adrian Sarbu,      dated December 27, 2007 (incorporated by reference to Exhibit 10.38      to the Company’s Annual Report on Form 10-K for the fiscal year ended      December 31, 2007).                                                                                                                                                                                                                                                                                                                                          |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.38*              |   | Framework      Agreement among Aleksandr Rodnyansky, Boris Fuchsmann, International      Teleservices Ltd., Central European Media Enterprises Ltd., CME Media      Enterprises B.V., CME Ukraine Holding GmbH, CET 21 spol. s r.o., Ukrainian      Media Services LLC, Studio 1+1 LLC, Foreign Enterprise Inter-Media,      Innova Film GmbH, International Media Services Ltd. and TV Media Planet      Ltd., dated January 31, 2008 (incorporated by reference to Exhibit      10.39 to the Company’s Annual Report on Form 10-K for the fiscal year      ended December 31, 2007).               |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.39*              |   | Termination      Agreement by and between Aleksandr Rodnyansky, Boris Fuchsmann,      International Teleservices Ltd., Central European Media Enterprises Ltd.,      CME Media Enterprises B.V., CME Ukraine Holding GmbH, CET 21 spol.      s r.o., Ukrainian Media Services LLC, Studio 1+1 LLC, Foreign      Enterprise Inter-Media, Innova Film GmbH, International Media Services Ltd      and TV Media Planet Ltd., dated January 31, 2008 (incorporated by      reference to Exhibit 10.40 to the Company’s Annual Report on Form 10-K for      the fiscal year ended December 31,2007). |

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| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.40*              |   | Assignment      Agreement among Igor Kolomoisky, Manita Investments Limited, Global Media      Group Ltd., Torcensta Holding Ltd., Central European Media Enterprises      Ltd., CME Media Enterprises B.V., CME Ukraine Holding GmbH and Ukrainian      Media Services LLC, dated January 31, 2008 (incorporated by reference      to Exhibit 10.41 to the Company’s Annual Report on Form 10-K for the      fiscal year ended December 31, 2007).                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.41*              |   | Agreement      between Mr. Richard Anthony Sheldon and Nova TV d.d., dated November 26,      2007 (incorporated by reference to Exhibit 10.42 to the Company’s      Annual Report on Form 10-K for the fiscal year ended December 31,      2007).                                                                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.42*              |   | Agreement      among Global Komunikacije d.o.o., Nova TV d.d. and Operativna Kompanija      d.o.o., dated November 26, 2007 (incorporated by reference to Exhibit      10.43 to the Company’s Annual Report on Form 10-K for the fiscal year      ended December 31, 2007).                                                                                                                                                                                                                                           |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.43*              |   | Agreement      among Narval A.M. d.o.o., Studio Millenium d.o.o. and Nova TV d.d., dated      November 26, 2007 (incorporated by reference to Exhibit 10.44 to the      Company’s Annual Report on Form 10-K for the fiscal year ended December      31, 2007).                                                                                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.44*              |   | Purchase      Agreement among Central European Media Enterprises Ltd., Lehman Brothers      Inc., J.P. Morgan Securities Inc., Deutsche Bank Securities Inc., BNP      Paribas and ING Bank N.V., London Branch, dated March 4, 2008      (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended March 31,      2008).                                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.45*              |   | Deed      of Amendment to the Intercreditor Agreement dated July 21, 2006, as      amended, among Central European Media Enterprises Ltd., Central European      Media Enterprises N.V., CME Media Enterprises B.V., The Bank of New York,      BNY Corporate Trustee Services Limited and European Bank for      Reconstruction and Development, dated March 10, 2008 (incorporated by      reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q      for the quarterly period ended March 31, 2008). |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.46*              |   | Security      Assignment between Central European Media Enterprises Ltd., CME Media      Enterprises B.V. and The Bank of New York, dated March 10, 2008      (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended March 31,      2008).                                                                                                                                                                                                          |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.47*              |   | Pledge      Agreement among Central European Media Enterprises Ltd., Central European      Media Enterprises N.V. and The Bank of New York, dated March 10, 2008      (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended March 31,      2008).                                                                                                                                                                                                  |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.48*              |   | Deed      of Pledge of Shares among Central European Media Enterprises N.V., CME      Media Enterprises B.V. and The Bank of New York, dated March 10, 2008      (incorporated by reference to Exhibit 10.5  to the Company’s      Quarterly Report on Form 10-Q for the quarterly period ended March 31,      2008).                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.49*              |   | Agreement      to Provide Advertising Services between Video International-Prioritet LLC      and Broadcasting Company “Studio 1+1” LLC dated November 30, 2006      (incorporated by reference to Exhibit 10.25  to the Company’s      Annual Report on Form 10-K for the fiscal year ended December 31,      2007).                                                                                                                                                                                |

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Table of Contents

| Exhibit      Number |   | Description                                                                                                                                                                                                                                                                                                                              |
|---------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 10.50*              |   | Capped      Call Transaction between Central European Media Enterprises Ltd., Deutsche      Bank AG, London Branch and Deutsche Bank Securities Inc., dated March 4,      2008 (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly      Report on Form 10-Q for the quarterly period ended March 31,      2008). |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 10.51*              |   | Capped      Call Transaction between Central European Media Enterprises Ltd. and BNP      Paribas, dated March 4, 2008 (incorporated by reference to Exhibit 10.8 to      the Company’s Quarterly Report on Form 10-Q for the quarterly period ended      March 31, 2008).                                                         |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 10.52*              |   | Master      Share Purchase Agreement between CME Media Enterprises B.V. and Top Tone      Media Holdings Limited, dated July 28, 2008 (incorporated by reference to      Exhibit 10.10 to the Company’s Quarterly Report on Form 10-Q for the      quarterly period ended September 30, 2008).                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 10.53*              |   | TV2      Group Shareholders Agreement between CME Media Enterprises B.V., Top Tone      Media Holdings Limited and Equip Limited (incorporated by reference to      Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the      quarterly period ended September 30, 2008).                                          |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 10.54*              |   | Separation      Agreement between CME Development Corporation and Michael Garin, dated      December 14, 2008 (incorporated by reference to Exhibit 10.1 to the      Company’s Current Report on Form 8-K filed on December 16,      2008).                                                                                        |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 21.01               |   | List      of subsidiaries.                                                                                                                                                                                                                                                                                                               |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 23.01               |   | Consent      of Deloitte LLP.                                                                                                                                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 24.01               |   | Power      of Attorney, dated as of February 25, 2009.                                                                                                                                                                                                                                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 31.01               |   | Certification      of President and Chief Operating Officer pursuant to Exchange Act Rules      13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 31.02               |   | Certification      of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and      15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                     |
| 32.01               |   | Certifications      of President and Chief Operating Officer and Chief Financial Officer      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 (furnishedonly).                                                                                                             |

| * | Previously      filed exhibits |
|---|--------------------------------|

| + | Exhibit      is a management contract or compensatoryplan |
|---|-----------------------------------------------------------|

| b) | Exhibits:      See (a)(3) above for a listing of the exhibits included as part of this      report. |
|----|-----------------------------------------------------------------------------------------------------|

| c) | Report      of Independent Registered Public Accountants on Schedule II - Schedule of      Valuation Allowances.  (See page S-1 of this Annual Report on      Form 10-K.) |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

TURES

| Date:  February      25, 2009 |   | /s/      Adrian      SarbuAdrian      SarbuPresident      and Chief Operating Officer (Principal      Executive Officer)                  |
|-----------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |   |                                                                                                                                      |
| Date:  February      25, 2009 |   | /s/      Wallace      MacmillanWallace      MacmillanChief      Financial Officer(Principal      Financial Officer and AccountingOfficer) |

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Table of Contents

| Signature                  |   | Title                                                                    |   | Date                   |
|----------------------------|--------|--------------------------------------------------------------------------|--------|------------------------|
|                       |   |                                                                     |   |                   |
| *                          |   | Chairman      of the Board of Directors                                  |   | February      25, 2009 |
| Ronald      S. Lauder      |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Vice-Chairman      of the Board of Directors                             |   | February      25, 2009 |
| Herbert      A. Granath    |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| /s/      Adrian Sarbu      |   | President      and Chief Operating Officer                               |   | February      25, 2009 |
| Adrian      Sarbu          |   | (Principal      Executive Officer)                                       |   |                   |
|                       |   |                                                                     |   |                   |
| /s/      Wallace Macmillan |   | Chief      Financial Officer                                             |   | February      25, 2009 |
| Wallace      Macmillan     |   | (Principal      Financial Officer and Principal      Accounting Officer) |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Frank      Ehmer           |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Charles      Frank         |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Herbert      Kloiber       |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Igor      Kolomoisky       |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Alfred      W. Langer      |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Bruce      Maggin          |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Ann      Mather            |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Christian      Stahl       |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Duco      Sickinghe        |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
| *                          |   | Director                                                                 |   | February      25, 2009 |
| Eric      Zinterhofer      |   |                                                                     |   |                   |
|                       |   |                                                                     |   |                   |
|                       |   | *By                                                                      |   |                   |
|                       |   | /s/Wallace      MacmillanWallace      MacmillanAttorney-in-fact          |   |                   |

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Table of Contents

|                                                                                                                                                                                         |   | Bad      debt and credit note provision |   |   | Deferred      tax allowance |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------|--------|
| Balance      at December 31, 2005                                                                                                                                                            |   |                                    | 9,250  |   |                        |   | 11,934 |   |
| Charged      to costs and expenses                                                                                                                                                           |   |                                    | 1,981  |   |                        |   | 5,418 |   |
| Charged      to other accounts (1)                                                                                                                                                           |   |                                    | 1,524  |   |                        |   | (1,168 | ) |
| Foreign      exchange                                                                                                                                                                        |   |                                    | (115   | )      |                        |   | (299 | ) |
| Balance      at December 31, 2006                                                                                                                                                            |   |                                    | 12,640 |   |                        |   | 15,885 |   |
| Charged      to costs and expenses                                                                                                                                                           |   |                                    | 1,852  |   |                        |   | 9,803 |   |
| Charged      to other accounts (1)                                                                                                                                                           |   |                                    | (602   | )      |                        |   | 2,000 |   |
| Foreign      exchange                                                                                                                                                                        |   |                                    | 691    |   |                        |   | 1,208 |   |
| Balance      at December 31, 2007                                                                                                                                                            |   |                                    | 14,581 |   |                        |   | 28,896 |   |
| Charged      to costs and expenses                                                                                                                                                           |   |                                    | 2,541  |   |                        |   | 7,192 |   |
| Charged      to other accounts (1)                                                                                                                                                           |   |                                    | (2,021 | )      |                        |   | 11,880 |   |
| Foreign      exchange                                                                                                                                                                        |   |                                    | (385   | )      |                        |   | (576 | ) |
| Balance      at December 31, 2008                                                                                                                                                            |   |                                    | 14,716 |   |                        |   | 47,392 |   |
| (1) Charged      to other accounts for the bad debt and credit note provision consist      primarily of accounts receivable written off and opening balance of      acquired companies. |   |

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