----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended September 30, 2005**

| **o** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

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

**(441)-296-1431**

| Class                                                | Outstanding                as of October 31, 2005 |
|------------------------------------------------------|---------------------------------------------------|
| Class                A Common Stock, par value $0.08 | 30,629,134                                        |
| Class                B Common Stock, par value $0.08 | 7,334,768                                         |

----

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**FORM      10-Q**

**For      the quarterly period ended September 30, 2005**

**INDEX**

|                                               | Page                                                                                                                                |
|----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| **Part                  I. Financial information** |                                                                                                                                |
|                                               | **Item                  1. Financial Statements**                                                                                   |   |
|                                               |                                                                                                                                | Consolidated                  Balance Sheets as at September 30, 2005 and                  December 31, 2004 | 3 |
|                                               |                                                                                                                                | Consolidated                  Statements of Operations for the Three Months                  and Nine Months Ended September 30, 2005 and 2004 | 5 |
|                                               |                                                                                                                                | Consolidated                  Statement of Shareholders' Equity for the Nine                  Months from December 31, 2004 to September 30, 2005 | 7 |
|                                               |                                                                                                                                | Consolidated                  Statements of Cash Flows for the Nine Months                  Ended September 30, 2005 and 2004 | 8 |
|                                               |                                                                                                                                | Notes                  to the Consolidated Financial                  Statements | 9 |
|                                               | **Item                  2. Management's Discussion and Analysis of Financial                  Condition and Results of Operations** | 37 |
|                                               | **Item                  3. Quantitative and Qualitative Disclosures About                  Market Risk**                            | 64 |
|                                               | **Item                  4. Controls and                  Procedures**                                                               | 65 |
| **Part                  II. Other Information**    |                                                                                                                                |
|                                               | **Item                  1. Legal Proceedings**                                                                                      | 66 |
|                                               | **Item                  5. Other Information**                                                                                      | 70 |
|                                               | **Item                  6. Exhibits**                                                                                               | 70 |
| **Signatures**                                     | 71                                                                                                                                  |
| **Exhibit                  Index**                 | 71                                                                                                                                  |

----

*Index*

**Part      I. Financial Information**

**Item      1. Financial Statements**

**CENTRAL      EUROPEAN MEDIA ENTERPRISES      LTD.**

**CONSOLIDATED      BALANCE SHEETS**

**(US$000s,      except share and per share data)**

**(Unaudited)**

|                                                                                                                 |   | **September                30,****2005** |          | **December                31,  2004** |   |
|----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------------|--------------------------------------------|--------|
| **ASSETS**                                                                                                           |   |                                |          |                                  |   |
| **Current                Assets**                                                                                    |   |                                |          |                                  |   |
| Cash                and cash equivalents                                                                             |   | $                                        | 100,375       |                                       | $      | 152,568 |   |
| Restricted                cash (Note 4)                                                                              |   |                                     | 34,115        |                                       |   | 15,574 |   |
| Accounts                receivable (net of allowances of $8,612, $6,140,                respectively)                |   |                                     | 76,099        |                                       |   | 45,170 |   |
| Other                receivables (Note 5)                                                                            |   |                                     | -             |                                       |   | 18,368 |   |
| Program                rights                                                                                        |   |                                     | 30,337        |                                       |   | 22,055 |   |
| Loans                to related parties                                                                              |   |                                     | 950           |                                       |   | 300 |   |
| Other                current assets (Note 8)                                                                         |   |                                     | 46,155        |                                       |   | 11,014 |   |
| **Total                Current Assets**                                                                              |   |                                     | **288,031**   |                                       |   | **265,049** |   |
| **Non-Current                Assets**                                                                                |   |                                     |          |                                       |   |   |   |
| Loans                to related parties                                                                              |   |                                     | 2,008         |                                       |   | 2,525 |   |
| Investments                in associated companies                                                                   |   |                                     | 29,372        |                                       |   | 28,558 |   |
| Acquisition                costs (Note 17)                                                                           |   |                                     | -             |                                       |   | 10,770 |   |
| Property,                plant and equipment (net of depreciation of $109,364, $63,882,                respectively) |   |                                     | 57,009        |                                       |   | 31,548 |   |
| Program                rights                                                                                        |   |                                     | 45,855        |                                       |   | 18,299 |   |
| Goodwill                (Note 7)                                                                                     |   |                                     | 763,882       |                                       |   | 59,092 |   |
| Other                intangibles (Note 7)                                                                            |   |                                     | 204,557       |                                       |   | 27,331 |   |
| Other                Non-current assets (Note 8)                                                                     |   |                                     | 16,448        |                                       |   | 1,467 |   |
| **Total                Non-Current Assets**                                                                          |   |                                     | **1,119,131** |                                       |   | **179,590** |   |
| **Total                Assets**                                                                                      |   | **$**                                    | **1,407,162** |                                       | **$**  | **444,639** |   |

*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONSOLIDATED      BALANCE SHEETS (continued)**

**(US$000s,      except share and per share data)**

**(Unaudited)**

|                                                                                                                                                                                                                                 |   | **September                30,****2005** |          | **December                31,****2004** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------------|-----------------------------------------|--------|
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                        |   |                                     |               |                                    |   |  |   |
| **Current                Liabilities:**                                                                                                                                                                                              |   |                                     |          |                                    |   |   |   |
| Accounts                payable and accrued liabilities (Note 9)                                                                                                                                                                     |   | $                                        | 107,360       |                                    | $      | 67,042 |   |
| Duties                and other taxes payable                                                                                                                                                                                        |   |                                     | 26,917        |                                    |   | 20,243 |   |
| Income                taxes payable                                                                                                                                                                                                  |   |                                     | 13,886        |                                    |   | 4,658 |   |
| Credit                facilities and obligations under capital leases                                                                                                                                                                |   |                                     | 18,146        |                                    |   | 10,472 |   |
| Settlement                liability (Note 10)                                                                                                                                                                                        |   |                                     | 1,060         |                                    |   | - |   |
| Deferred                consideration - Croatia (Note 5)                                                                                                                                                                             |   |                                     | 3,671         |                                    |   | 6,384 |   |
| Deferred                consideration - Czech Republic (Note 5)                                                                                                                                                                      |   |                                     | 24,453        |                                    |   | - |   |
| Deferred                tax                                                                                                                                                                                                          |   |                                     | 1,047         |                                    |   | 946 |   |
| **Total                Current Liabilities**                                                                                                                                                                                         |   |                                     | **196,540**   |                                    |   | **109,745** |   |
| **Non-Current                Liabilities**                                                                                                                                                                                           |   |                                     |          |                                    |   |   |   |
| Accounts                payable and accrued liabilities (Note 9)                                                                                                                                                                     |   |                                     | 5,289         |                                    |   | 734 |   |
| Credit                facilities and obligations under capital leases                                                                                                                                                                |   |                                     | 4,944         |                                    |   | 8,898 |   |
| Settlement                liability (Note 10)                                                                                                                                                                                        |   |                                     | 50,475        |                                    |   | - |   |
| Euro                245.0 million 8.25% Senior Notes due 2012 (Note 11)                                                                                                                                                              |   |                                     | 295,395       |                                    |   | - |   |
| Euro                125.0 million floating rate Senior Notes due 2012 (Note                11)                                                                                                                                       |   |                                     | 150,711       |                                    |   | - |   |
| Income                taxes payable                                                                                                                                                                                                  |   |                                     | 5,500         |                                    |   | 3,120 |   |
| Provision                for losses in investments in associated companies                                                                                                                                                           |   |                                     | 161           |                                    |   | - |   |
| Deferred                tax                                                                                                                                                                                                          |   |                                     | 45,702        |                                    |   | 6,213 |   |
| **Total                Non-Current Liabilities**                                                                                                                                                                                     |   |                                     | **558,177**   |                                    |   | **18,965** |   |
| **Minority                interests in consolidated subsidiaries**                                                                                                                                                                   |   |                                     | **8,425**     |                                    |   | **4,861** |   |
| **SHAREHOLDERS'                EQUITY:**                                                                                                                                                                                             |   |                                     |          |                                    |   |   |   |
| Class                A Common Stock, $0.08 par value:                                                                                                                                                                                |   |                                     |          |                                    |   |   |   |
| Authorized:                100,000,000 shares at September 30, 2005 and December 31, 2004; issued                and                outstanding: 30,629,134 at September 30, 2005 and 21,049,400 at December                31, 2004 |   |                                     | 2,450         |                                    |   | 1,684 |   |
| Class                B Common Stock, $0.08 par value:                                                                                                                                                                                |   |                                     |          |                                    |   |   |   |
| Authorized:                15,000,000 shares at September 30, 2005 and December 31, 2004; issued                and                outstanding: 7,334,768 at September 30, 2005 and December 31,                2004                 |   |                                     | 587           |                                    |   | 587 |   |
| Preferred                Stock, $0.08 par value:                                                                                                                                                                                     |   |                                     |          |                                    |   |   |   |
| Authorized                5,000,000 shares at September 30, 2005 and December 31, 2004; issued                and                outstanding: none at September 30, 2005 and December 31,                2004                        |   |                                     |          |                                    |   |   |   |
| Additional                paid-in capital                                                                                                                                                                                            |   |                                     | 745,349       |                                    |   | 387,305 |   |
| Retained                earnings/(accumulated deficit)                                                                                                                                                                               |   |                                     | (79,572       | )                                       |   | (87,468 | ) |
| Accumulated                other comprehensive (loss)/income                                                                                                                                                                         |   |                                     | (24,794       | )                                       |   | 8,960 |   |
| **Total                shareholders' equity**                                                                                                                                                                                        |   |                                     | **644,020**   |                                    |   | **311,068** |   |
| **Total                liabilities and shareholders' equity**                                                                                                                                                                        |   | **$**                                    | **1,407,162** |                                    | **$**  | **444,639** |   |

*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**(US$000s,      except share and per share data)**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                                                                                           |   | **For                the Three Months****Ended                September 30,** |       | **For                the Nine Months****Ended                September 30,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                           |   | **2005**                                                                      |       | **2004**                                                                     |   | **2005** |   | **2004** |   |
| **Net                revenues**                                                                                                                                                                                                                                                                                                                                                                                |   | **$**                                                                         | **87,067** |                                                                         | **$**  | **36,543** |   | **$** | **248,480** |   | **$** | **117,277** |   |
| Operating                costs                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                          | 15,331     |                                                                         |   | 9,055 |   |   | 44,733 |   |   | 22,464 |   |
| Cost                of programming                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                          | 40,470     |                                                                         |   | 17,266 |   |   | 94,873 |   |   | 46,829 |   |
| Depreciation                of station fixed assets and other intangibles                                                                                                                                                                                                                                                                                                                                      |   |                                                                          | 8,908      |                                                                         |   | 2,080 |   |   | 15,903 |   |   | 4,940 |   |
| **Total                station operating costs and expenses**                                                                                                                                                                                                                                                                                                                                                  |   |                                                                          | **64,709** |                                                                         |   | **28,401** |   |   | **155,509** |   |   | **74,233** |   |
| Station                selling, general and administrative expenses                                                                                                                                                                                                                                                                                                                                            |   |                                                                          | 12,766     |                                                                         |   | 6,676 |   |   | 32,256 |   |   | 14,560 |   |
| Corporate                operating costs (including non-cash stock-based compensation (see                Note 15)                of $ 0.6 million and $ 2.7 million for the three months ended September                30, 2005 and 2004, respectively and $ 2.3 million and $ 7.0 million                for                the nine months ended September 30, 2005 and 2004,                respectively) |   |                                                                          | 4,800      |                                                                         |   | 8,202 |   |   | 15,982 |   |   | 20,426 |   |
| Impairment                charge (Note 6)                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                          | -          |                                                                         |   | - |   |   | 35,331 |   |   | - |   |
| **Operating                income/(loss)**                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                          | **4,792**  |                                                                         |   | **(6,736** | **)** |   | **9,402** |   |   | **8,058** |   |
| Interest                income                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                          | 1,716      |                                                                         |   | 960 |   |   | 3,354 |   |   | 3,200 |   |
| Interest                expense                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                          | (11,574    | )                                                                            |   | (599 | ) |   | (18,305 | ) |   | (1,484 | ) |
| Foreign                currency exchange gain/(loss), net                                                                                                                                                                                                                                                                                                                                                      |   |                                                                          | 856        |                                                                         |   | 1,133 |   |   | 30,286 |   |   | (789 | ) |
| Other                expense                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                          | (840       | )                                                                            |   | (159 | ) |   | (4,529 | ) |   | (940 | ) |
| **Income/(loss)                before provision for income taxes, minority interest, equity in                income/(loss) of unconsolidated affiliates and discontinued                operations**                                                                                                                                                                                                          |   |                                                                          | **(5,050** | **)**                                                                        |   | **(5,401** | **)** |   | **20,208** |   |   | **8,045** |   |
| Provision                for income taxes                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                          | (2,206     | )                                                                            |   | (1,120 | ) |   | (8,112 | ) |   | (8,059 | ) |
| **Income/(loss)                before minority interest, equity in income/(loss) of unconsolidated                affiliates and discontinued operations**                                                                                                                                                                                                                                                     |   |                                                                          | **(7,256** | **)**                                                                        |   | **(6,521** | **)** |   | **12,096** |   |   | **(14** | **)** |
| Minority                interest in income/(loss) of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                 |   |                                                                          | 1,037      |                                                                         |   | (153 | ) |   | (3,644 | ) |   | (610 | ) |
| Equity                in income/(loss) of unconsolidated affiliates                                                                                                                                                                                                                                                                                                                                            |   |                                                                          | (63        | )                                                                            |   | 84 |   |   | 4,820 |   |   | 5,283 |   |
| **Net                income****/(loss)                from continuing operations**                                                                                                                                                                                                                                                                                                                             |   |                                                                          | **(6,282** | **)**                                                                        |   | **(6,590** | **)** |   | **13,272** |   |   | **4,659** |   |
| Discontinued                operations - Czech Republic:                                                                                                                                                                                                                                                                                                                                                       |   |                                                                          |       |                                                                         |   |   |   |   |   |   |   |   |   |
| Pre-tax                income from discontinued operations                                                                                                                                                                                                                                                                                                                                                     |   |                                                                          | -          |                                                                         |   | 107 |   |   | 164 |   |   | 62 |   |
| Tax                on disposal of discontinued operations                                                                                                                                                                                                                                                                                                                                                      |   |                                                                          | (3,332     | )                                                                            |   | 836 |   |   | (5,540 | ) |   | 836 |   |
| **Net                income****/(loss)                from discontinued operations**                                                                                                                                                                                                                                                                                                                           |   |                                                                          | **(3,332** | **)**                                                                        |   | **943** |   |   | **(5,376** | **)** |   | **898** |   |
| **Net                income/(loss)**                                                                                                                                                                                                                                                                                                                                                                           |   | **$**                                                                         | **(9,614** | **)**                                                                        | **$**  | **(5,647** | **)** | **$** | **7,896** |   | **$** | **5,557** |   |

** **
*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONSOLIDATED      STATEMENTS OF OPERATIONS (continued)**

**(US$      000's, except share and per share data) **

**(Unaudited)**

|                                                                                                     |   | **For                the Three Months****Ended                September 30,** |   | **For                the Nine Months****Ended                September 30,** |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                                                                     |   | **2005**                                                                      |   | **2004**                                                                     |   | **2005** |   | **2004** |   |
|                                                                                                     |   |                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| PER                SHARE DATA:                                                                           |   |                                                                          |        |                                                                         |   |  |   |   |  |   |   |  |   |
| Net                income per share (Note 14)                                                            |   |                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Continuing                operations - Basic (1)                                                         |   | $                                                                             | (0.16  | )                                                                            | $      | (0.23 | ) | $ | 0.40 |   | $ | 0.17 |   |
| Continuing                operations - Diluted (1)                                                       |   | $                                                                             | (0.16  | )                                                                            | $      | (0.23 | ) | $ | 0.39 |   | $ | 0.16 |   |
| Discontinued                operations - Basic                                                           |   | $                                                                             | (0.09  | )                                                                            | $      | 0.03 |   | $ | (0.16 | ) | $ | 0.03 |   |
| Discontinued                operations - Diluted                                                         |   | $                                                                             | (0.09  | )                                                                            | $      | 0.03 |   | $ | (0.16 | ) | $ | 0.03 |   |
| Net                income - Basic (1)                                                                    |   | $                                                                             | (0.25  | )                                                                            | $      | (0.20 | ) | $ | 0.24 |   | $ | 0.20 |   |
| Net                income - Diluted (1)                                                                  |   | $                                                                             | (0.25  | )                                                                            | $      | (0.20 | ) | $ | 0.23 |   | $ | 0.19 |   |
|                                                                                                     |   |                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares used in computing per share amounts                (000s): |   |                                                                          |        |                                                                         |   |  |   |   |  |   |   |  |   |
| Continuing                operations - Basic (as restated) (1)                                           |   |                                                                          | 37,883 |                                                                         |   | 28,167 |   |   | 33,549 |   |   | 27,705 |   |
| Continuing                operations - Diluted (as restated) (1)                                         |   |                                                                          | 37,883 |                                                                         |   | 28,167 |   |   | 34,378 |   |   | 29,021 |   |
| Discontinued                operations - Basic (as restated) (1)                                         |   |                                                                          | 37,883 |                                                                         |   | 28,167 |   |   | 33,549 |   |   | 27,705 |   |
| Discontinued                operations - Diluted (as restated) (1)                                       |   |                                                                          | 37,883 |                                                                         |   | 28,167 |   |   | 34,378 |   |   | 29,021 |   |
| Net                income - Basic (as restated) (1)                                                      |   |                                                                          | 37,883 |                                                                         |   | 28,167 |   |   | 33,549 |   |   | 27,705 |   |
| Net                income - Diluted (as restated) (1)                                                    |   |                                                                          | 37,883 |                                                                         |   | 28,167 |   |   | 34,378 |   |   | 29,021 |   |
|                                                                                                     |   |                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| (1)                See Note 14, “Earnings Per Share”.                                        |

** **
*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONSOLIDATED      STATEMENT OF SHAREHOLDERS' EQUITY**

**(US$      000’s)**

**(Unaudited)**

|                                              |   | **Comprehensive****Income/(loss)** |    | **Class                A****Common****Stock** |   | **Class                B****Common****Stock** |   | **Additional****Paid-In****Capital** |    | **Accumulated****Deficit** |   | **Accumulated****Other****Comprehensive****Income/(Loss)** |   | **Total****Shareholders'****Equity** |        |
|---------------------------------------------------|--------|------------------------------------|---------|-----------------------------------------------|--------|-----------------------------------------------|--------|--------------------------------------|---------|----------------------------|--------|------------------------------------------------------------|--------|--------------------------------------|-------------|
| **BALANCE,                December 31, 2004**     |   |                               |    |                                          | **$**  | **1,684**                                     |   | **$**                                | **587** |                       | **$**  | **387,305**                                                |   | **$**                                | **(87,468** | **)** | **$** | **8,960** |   | **$** | **311,068** |   |
| Stock-based                compensation           |   |                               |    |                                          |   |                                          |   |                                 |    |                       |   | 2,298                                                      |   |                                 |        |   |   |   |   |   | 2,298 |   |
| New                stock issued                   |   |                               |    |                                          |   | 712                                           |   |                                 |    |                       |   | 350,775                                                    |   |                                 |        |   |   |   |   |   | 351,487 |   |
| Stock                options exercised            |   |                               |    |                                          |   | 54                                            |   |                                 |    |                       |   | 4,971                                                      |   |                                 |        |   |   |   |   |   | 5,025 |   |
| Comprehensive                income/(loss):       |   |                               |    |                                          |   |                                          |   |                                 |    |                       |   |                                                       |   |                                 |        |   |   |   |   |   |   |   |
| Net                income                         |   | $                                  | 7,896   |                                          |   |                                          |   |                                 |    |                       |   |                                                       |   |                                 | 7,896       |   |   |   |   |   | 7,896 |   |
| Other                comprehensive income/(loss): |   |                               |    |                                          |   |                                          |   |                                 |    |                       |   |                                                       |   |                                 |        |   |   |   |   |   |   |   |
| Cumulative                translation adjustments |   |                               | (33,754 | )                                             |   |                                          |   |                                 |    |                       |   |                                                       |   |                                 |        |   |   | (33,754 | ) |   | (33,754 | ) |
| Comprehensive                loss                 |   | $                                  | (25,858 | )                                             |   |                                          |   |                                 |    |                       |   |                                                       |   |                                 |        |   |   |   |   |   |   |   |
| **BALANCE,                September 30, 2005**    |   |                               |    |                                          | **$**  | **2,450**                                     |   | **$**                                | **587** |                       | **$**  | **745,349**                                                |   | **$**                                | **(79,572** | **)** | **$** | **(24,794** | **)** | **$** | **644,020** |   |

** **
*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS **

**(US$      000’s)**

**(Unaudited)**

|                                                                                                            |   | **For                  the Nine Months****Ended                  September 30,** |         |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------------|
|                                                                                                            |   | **2005**                                                                         |         | **2004** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                      |   |                                                                             |         |   |   |
| **Net                  income**                                                                                 |   | **$**                                                                            | **7,896**    |   | **$** | **5,557** |   |
| Adjustments                  to reconcile net income to net cash used in operating                  activities: |   |                                                                             |         |   |   |   |   |
| (Income)/loss                  from discontinued operations                                                     |   |                                                                             | 5,376        |   |   | (898 | ) |
| Equity                  in income, net of dividends received                                                    |   |                                                                             | (655         | ) |   | (1,048 | ) |
| Depreciation                  and amortization                                                                  |   |                                                                             | 64,538       |   |   | 33,045 |   |
| Impairment                  charge                                                                              |   |                                                                             | 35,331       |   |   | - |   |
| Interest                  receivable                                                                            |   |                                                                             | (132         | ) |   | (863 | ) |
| Loss                  on disposal of fixed assets                                                               |   |                                                                             | 564          |   |   | - |   |
| Stock-based                  compensation (Note 15)                                                             |   |                                                                             | 2,298        |   |   | 6,963 |   |
| Minority                  interest in income of consolidated subsidiaries                                       |   |                                                                             | 3,644        |   |   | 610 |   |
| Foreign                  currency exchange (gain)/loss, net                                                     |   |                                                                             | (30,286      | ) |   | 789 |   |
| Net                  change in (net of effects of acquisitions and disposals of                  businesses):   |   |                                                                             |         |   |   |   |   |
| Accounts                  receivable                                                                            |   |                                                                             | 23,329       |   |   | 5,606 |   |
| Program                  rights costs                                                                           |   |                                                                             | (69,603      | ) |   | (34,383 | ) |
| Other                  assets                                                                                   |   |                                                                             | 2,759        |   |   | (4,349 | ) |
| Advances                  from affiliates                                                                       |   |                                                                             | -            |   |   | (2,503 | ) |
| Accounts                  payable and accrued liabilities                                                       |   |                                                                             | 7,958        |   |   | (3,024 | ) |
| Change                  in fair value of derivatives                                                            |   |                                                                             | (643         | ) |   | - |   |
| Short                  term payables to bank                                                                    |   |                                                                             | -            |   |   | - |   |
| Income                  and other taxes payable                                                                 |   |                                                                             | (7,831       | ) |   | (1,862 | ) |
| **Net                  cash generated from continuing operating                  activities**                   |   |                                                                             | **44,543**   |   |   | **3,640** |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                      |   |                                                                             |         |   |   |   |   |
| Restricted                  cash                                                                                |   |                                                                             | (19,336      | ) |   | (9,459 | ) |
| Acquisition                  of fixed assets                                                                    |   |                                                                             | (17,547      | ) |   | (9,490 | ) |
| Proceeds                  from disposal of fixed assets                                                         |   |                                                                             | 124          |   |   | - |   |
| Investments                  in subsidiaries and affiliates (1)                                                 |   |                                                                             | (30,293      | ) |   | (36,196 | ) |
| Acquisition                  of TV Nova (Czech Republic) Group                                                  |   |                                                                             | (218,053     | ) |   | - |   |
| Loans                  and advances to related parties                                                          |   |                                                                             | -            |   |   | 400 |   |
| License                  costs, other assets and intangibles                                                    |   |                                                                             | -            |   |   | 712 |   |
| **Net                  cash used in continuing investing activities**                                           |   |                                                                             | **(285,105** | **)** |   | **(54,033** | **)** |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                      |   |                                                                             |         |   |   |   |   |
| Cash                  facilities and payments under capital leases                                              |   |                                                                             | (17,172      | ) |   | (1,447 | ) |
| Net                  proceeds from issuance of Senior Notes                                                     |   |                                                                             | 474,292      |   |   | - |   |
| Repayment                  of notes for acquisition of TV Nova (Czech Republic) Group                           |   |                                                                             | (491,703     | ) |   | - |   |
| Repayment                  of liabilities on acquisition of Galaxie Sport                                       |   |                                                                             | (3,000       | ) |   | - |   |
| Issuance                  of stock                                                                              |   |                                                                             | 235,629      |   |   | 4,127 |   |
| Dividends                  paid to minority shareholders                                                        |   |                                                                             | (217         | ) |   | - |   |
| **Net                  cash received from financing activities**                                                |   |                                                                             | **197,829**  |   |   | **2,680** |   |
| **NET                  CASH USED IN DISCONTINUED OPERATIONS - OPERATING**                                       |   |                                                                             | **(2,000**   | **)** |   | **(9,606** | **)** |
| **NET                  CASH RECEIVED FROM DISCONTINUED OPERATIONS -                  INVESTING**                |   |                                                                             | **-**        |   |   | **20,349** |   |
| **IMPACT                  OF EXCHANGE RATE FLUCTUATIONS ON CASH**                                               |   |                                                                             | **(7,460**   | **)** |   | **(740** | **)** |
| Net                  decrease in cash and cash equivalents                                                      |   |                                                                             | (52,193      | ) |   | (37,710 | ) |
| **CASH                  AND CASH EQUIVALENTS, beginning of period**                                             |   |                                                                             | **152,568**  |   |   | **192,246** |   |
| **CASH                  AND CASH EQUIVALENTS, end of period**                                                   |   | **$**                                                                            | **100,375**  |   | **$** | **154,536** |   |
| SUPPLEMENTAL                  CASH FLOW INFORMATION:                                                            |   |                                                                             |         |   |   |   |   |
| Cash                  paid for interest                                                                         |   | $                                                                                | 627          |   | $ | 373 |   |
| Cash                  paid for income taxes (net of refunds)                                                    |   | $                                                                                | 4,936        |   | $ | 15,552 |   |
| Exchange                  of 3.5 million Class A Common Stock (Note 5)                                          |   | $                                                                                | 120,883      |   | $ | - |   |
| Notes                  taken out for acquisition of TV Nova (Czech Republic) Group (Note                  5)    |   | $                                                                                | 491,703      |   | $ | - |   |
| Exchange                  of Other Receivable (Note 5)                                                          |   | $                                                                                | 18,541       |   | $ | - |   |
| Purchase                  of Krsak interest financed with payable                                               |   | $                                                                                | 24,683       |   | $ | - |   |

*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

*Index*

**CENTRALEUROPEAN      MEDIA ENTERPRISES LTD.**

**Notes      to the Consolidated Financial Statements**

**September      30, 2005**

| **1.** | **Basis                of Presentation** |
|--------|------------------------------------------|

----

*Index*

***Pro      Forma Disclosures***

|                                                                                                                                                                            |   |   |                             | **For                the Three Months Ended September 30,** |   | **For                the Nine Months Ended September 30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------|-------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                            |   |   |                             | **(US$                000’s, except per share data)** |   |
|                                                                                                                                                                            |   |   |                             | **2005**                                                    |   | **2004**                                                   |   | **2005** |   | **2004** |   |
|                                                                                                                                                                            |   |   |                             |                                                        |   |                                                       |   |   |   |   |   |
| Net                Income/(Loss)                                                                                                                                                |   |   | As                Reported       |                                                        | $      | (9,614                                                     | )      | $ | (5,647 | ) | $ | 7,896 |   | $ | 5,557 |   |
| Add:                Stock-based compensation expense included in reported net income,                net of                related tax effects                                  |   |   | As                Reported       |                                                        |   | 616                                                        |   |   | 2,710 |   |   | 2,298 |   |   | 6,963 |   |
| Deduct:                Total stock-based compensation expense determined under fair value                based                method for all awards, net of related tax effects |   |   | Pro                Forma Expense |                                                        |   | (625                                                       | )      |   | (2,764 | ) |   | (2,352 | ) |   | (7,124 | ) |
| Net                Income/(Loss)                                                                                                                                                |   |   | Pro                Forma         |                                                        | **$**  | **(9,623**                                                 | **)**  | **$** | **(5,701** | **)** | **$** | **7,842** |   | **$** | **5,396** |   |
|                                                                                                                                                                            |   |   |                             |                                                        |   |                                                       |   |   |   |   |   |   |   |   |   |   |
| Net                Income Per Common Share - Basic:                                                                                                                             |   |   | As                Reported       |                                                        | $      | (0.25                                                      | )      | $ | (0.20 | ) | $ | 0.24 |   | $ | 0.20 |   |
|                                                                                                                                                                            |   |   | Pro                Forma    |                                                        | $      | (0.25                                                      | )      | $ | (0.20 | ) | $ | 0.23 |   | $ | 0.19 |   |
|                                                                                                                                                                            |   |   |                             |                                                        |   |                                                       |   |   |   |   |   |   |   |   |   |   |
| Net                Income Per Common Share -Diluted:                                                                                                                            |   |   | As                Reported       |                                                        | $      | (0.25                                                      | )      | $ | (0.20 | ) | $ | 0.23 |   | $ | 0.19 |   |
|                                                                                                                                                                            |   |   | Pro                Forma    |                                                        | $      | (0.25                                                      | )      | $ | (0.20 | ) | $ | 0.23 |   | $ | 0.19 |   |

| **2.** | **Group                Operations** |
|--------|-------------------------------------|

----

*Index*

| **Key                      Subsidiaries and Affiliates as at****September                      30, 2005** |   | **Voting****Interest** |   | **Share                      of****Profits** |   | **Accounting****Treatment**                     |   | **TV                      Channels**                                                                              |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------|--------|----------------------------------------------|--------|-------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
| **Continuing                      Operations**                                                            |   |                   |   |                                         |   |                                            |   |                                                                                                              |
|                                                                                                      |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| ***Croatia***                                                                                             |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Operating                      Company:                                                                   |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Operativna                      Kompanija d.o.o. (OK)                                                     |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   |                                                                                                              |
| License                      Company:                                                                     |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Nova                      TV d.d. (Nova TV Croatia)                                                       |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   | NOVA                      TV (Croatia)                                                                            |
|                                                                                                      |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| ***Czech                      Republic***                                                                 |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Operating                      Companies:                                                                 |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Ceska                      Produkcni 2000 a.s. (CP 2000)                                                  |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   |                                                                                                              |
| MAG                      MEDIA 99 a.s. (Mag Media)                                                        |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   |                                                                                                              |
| License                      Companies:                                                                   |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| CET                      21 s.r.o. (CET 21)                                                               |   | 96.5%                  |   | 96.5%                                        |   | Consolidated                      Subsidiary    |   | TV                      NOVA (Czech                      Republic)                                                |
| Galaxie                      Sport s.r.o. (Galaxie Sport)                                                 |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   | GALAXIE                      SPORT                                                                                |
|                                                                                                      |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| ***Romania***                                                                                             |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Operating                      Companies:                                                                 |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Media                      Pro InternationalS.A.                      (MPI)                               |   | 85%                    |   | 85%                                          |   | Consolidated                      Subsidiary    |   |                                                                                                              |
| Media                      Vision S.R.L. (Media Vision)                                                   |   | 70%                    |   | 70%                                          |   | Consolidated                      Subsidiary    |   |                                                                                                              |
| License                      Companies:                                                                   |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Pro                      TV S.A. - formerly Pro TV S.R.L. (Pro TV)                                        |   | 85%                    |   | 85%                                          |   | Consolidated                      Subsidiary    |   | PRO                      TV, ACASA, PRO                      CINEMA and PRO                      TV INTERNATIONAL |
| Radio                      Pro S.R.L. - formerly Media Pro S.R.L (Radio Pro)                              |   | 20%                    |   | 20%                                          |   | Equity                      Accounted Affiliate |   | PRO                      FM (radio), INFOPRO                                                                      |
|                                                                                                      |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| ***Slovenia***                                                                                            |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Operating                      Company:                                                                   |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Produkcija                      Plus d.o.o. (Pro Plus)                                                    |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   |                                                                                                              |
| License                      Companies:                                                                   |   |                   |   |                                         |   |                                            |   |                                                                                                              |
| Pop                      TV d.o.o. (Pop TV)                                                               |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   | POP                      TV                                                                                       |
| Kanal                      A d.o.o. (Kanal A)                                                             |   | 100%                   |   | 100%                                         |   | Consolidated                      Subsidiary    |   | KANAL                      A                                                                                      |

----

*Index*

| **Key                  Subsidiaries and Affiliates as at****September                  30, 2005** |   | **Voting****Interest** |   | **Share                  of****Profits** |   | **Accounting****Treatment**                                             |   | **TV                  Channels** |
|---------------------------------------------------------------------------------------------------|--------|------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------------------|--------|----------------------------------|
| **Continuing                  Operations**                                                        |   |                   |   |                                     |   |                                                                    |   |                             |
|                                                                                              |   |                   |   |                                     |   |                                                                    |   |                             |
| ***Slovak                  Republic***                                                            |   |                   |   |                                     |   |                                                                    |   |                             |
| Operating                  Company:                                                               |   |                   |   |                                     |   |                                                                    |   |                             |
| Slovenska                  Televizna Spolocnost s.r.o. (STS)                                      |   | 49%                    |   | 70%                                      |   | Equity                  Accounted Affiliate                             |   |                             |
| License                  Company:                                                                 |   |                   |   |                                     |   |                                                                    |   |                             |
| Markiza-Slovakia                  s.r.o. (Markiza)                                                |   | 34%                    |   | 0.1%                                     |   | Equity                  Accounted Affiliate                             |   | MARKIZA                  TV      |
|                                                                                              |   |                   |   |                                     |   |                                                                    |   |                             |
| ***Ukraine***                                                                                     |   |                   |   |                                     |   |                                                                    |   |                             |
| Operating                  Companies:                                                             |   |                   |   |                                     |   |                                                                    |   |                             |
| Innova                  Film GmbH (Innova)                                                        |   | 60%                    |   | 60%                                      |   | Consolidated                  Subsidiary                                |   |                             |
| International                  Media Services Ltd. (IMS)                                          |   | 60%                    |   | 60%                                      |   | Consolidated                  Subsidiary                                |   |                             |
| Enterprise                  "Inter-Media" (Inter-Media)                                           |   | 60%                    |   | 60%                                      |   | Consolidated                  Subsidiary                                |   |                             |
| License                  Company:                                                                 |   |                   |   |                                     |   |                                                                    |   |                             |
| Broadcasting                  Company "Studio 1+1" (Studio 1+1)                                   |   | 18%                    |   | 60%                                      |   | Consolidated                  Variable                  Interest Entity |   | STUDIO                  1+1      |

----

*Index*

----

*Index*

*Croatia*

*Czech      Republic*

*Romania*

*Slovenia*

*Slovak      Republic*

*Ukraine*

----

*Index*

| **3.** | **Recent                Accounting Pronouncements** |
|--------|-----------------------------------------------------|

*Stock-based      compensation*

| **4.** | **Restricted                Cash** |
|--------|------------------------------------|

| **5.** | **Acquisitions                and Disposals** |
|--------|-----------------------------------------------|

*Czech      Republic*

*Acquisition      - TV Nova*

----

*Index*

|                                                         |   | **Book                Value****on                Acquisition** |     | **Fair                Value****Adjustment** |   | **                 Fair Value****on                Acquisition** |   |
|--------------------------------------------------------------|--------|----------------------------------------------------------------|----------|---------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                                         |   | **US$                000’s**                             |     |
| Cash                                                         |   | $                                                              | 35,592   |                                        | $      | -                                                                     |   | $ | 35,592 |   |
| Receivables                                                  |   |                                                           | 56,832   |                                        |   | -                                                                     |   |   | 56,832 |   |
| Property,                plant and equipment                 |   |                                                           | 12,977   |                                        |   | 4,402                                                                 |   |   | 17,379 |   |
| Program                library                               |   |                                                           | 28,200   |                                        |   | 1,477                                                                 |   |   | 29,677 |   |
| Intangible                assets subject to amortization     |   |                                                           | 19,666   |                                        |   | 140,559                                                               |   |   | 160,225 |   |
| Intangible                assets not subject to amortization |   |                                                           | 516      |                                        |   | 14,250                                                                |   |   | 14,766 |   |
| Goodwill                                                     |   |                                                           | -        |                                        |   | 739,782                                                               |   |   | 739,782 |   |
| Other                assets                                  |   |                                                           | 20,874   |                                        |   | 2,345                                                                 |   |   | 23,219 |   |
| Liabilities                                                  |   |                                                           | (120,817 | )                                           |   | (2,605                                                                | )      |   | (123,422 | ) |
| Deferred                tax liability                        |   |                                                           | (3,276   | )                                           |   | (39,118                                                               | )      |   | (42,394 | ) |
| Minority                interest                             |   |                                                           | (2,200   | )                                           |   | -                                                                     |   |   | (2,200 | ) |
| **Total                purchase price**                      |   |                                                           |     |                                        |   |                                                                  |   | **$** | **909,456** |   |

----

*Index*

|                                                            |   | **For                the Three Months****Ended                September 30,** |   | **For                the Nine Months****Ended                September 30,** |   |
|-----------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                            |   | **2005**                                                                      |   | **2004**                                                                     |   | **2005** |   | **2004** |   |
| Pro-forma                                                       |   | **(US$                000's, except per share data)**                         |   |
| Net                revenues                                     |   | $                                                                             | 87,067 |                                                                         | $      | 73,117 |   | $ | 330,604 |   | $ | 258,088 |   |
| Net                income/(loss) from continuing operations     |   | $                                                                             | (6,282 | )                                                                            | $      | (7,118 | ) | $ | 29,515 |   | $ | 25,328 |   |
| Net                income/(loss)                                |   | $                                                                             | (9,614 | )                                                                            | $      | (6,175 | ) | $ | 24,139 |   | $ | 26,226 |   |
|                                                            |   |                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Per                Share Data:                                  |   |                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Net                income                -                Basic |   | $                                                                             | (0.25  | )                                                                            | $      | (0.17 | ) | $ | 0.64 |   | $ | 0.72 |   |
| Net                income - Diluted                             |   | $                                                                             | (0.25  | )                                                                            | $      | (0.17 | ) | $ | 0.63 |   | $ | 0.69 |   |

*Acquisition      - Galaxie Sport*

*Romania*

*Acquisition      - MPI and Pro TV*

----

*Index*

*Croatia*

*Acquisition      - Nova TV*

*Slovenia*

*Acquisition      - Pro Plus*

| **6.** | **Impairment                charge** |
|--------|--------------------------------------|

----

*Index*

| **7.** | **Goodwill                and Intangible Assets** |
|--------|---------------------------------------------------|

*Goodwill:*

|                                     |   | **Carrying****amount                as at****December                31,****2004** | ** ** | **Additions                in****the                period** | ** ** | **Allocation** | ** ** | **Impairment** | ** **  | **Foreign****Exchange****movements** | ** ** | **Carrying****amount                as at****September                30,****2005** |   |
|------------------------------------------|--------|------------------------------------------------------------------------------------|------------|--------------------------------------------------------------|------------|----------------|------------|----------------|-------------|--------------------------------------|------------|-------------------------------------------------------------------------------------|--------|
|                                     |   | (US$                000’s)                                                   |       |
| Slovenian                operations      |   | $                                                                                  | 14,724     |                                                         |       | 2,300          |       |           | -           |                                 |       | -                                                                                   |   |   | (1,641 | ) | $ | 15,383 |   |
| Ukrainian                operations      |   | $                                                                                  | 4,096      |                                                         |       | -              |       |           | -           |                                 |       | -                                                                                   |   |   | - |   | $ | 4,096 |   |
| Romanian                operations       |   | $                                                                                  | 8,826      |                                                         |       | 10,928         |       |           | -           |                                 |       | -                                                                                   |   |   | - |   | $ | 19,754 |   |
| Croatian                operations       |   | $                                                                                  | 31,446     |                                                         |       | -              |       |           | (18,817     | )                                    |       | (9,706                                                                              | )      |   | (2,221 | ) | $ | 702 |   |
| Czech                Republic operations |   | $                                                                                  | -          |                                                         |       | 743,582        |       |           | -           |                                 |       | -                                                                                   |   |   | (19,635 | ) | $ | 723,947 |   |
| **Total**                                |   | **$**                                                                              | **59,092** |                                                         | **$**      | **756,810**    |       |           | **(18,817** | **)**                                |       | **(9,706**                                                                          | **)**  |   | **(23,497** | **)** | **$** | **763,882** |   |

*Other      intangibles:*

|                                    |   | **Carrying****amount                as at****December                31,****2004** | ** ** | **Additions                /****Allocations                in****the                period** | ** ** | **Impairment** | ** ** | **Amortization                in****the                period** | ** **  | **Foreign****exchange****movements** | ** ** | **Carrying****amount                as at****September                30,****2005** |   |
|-----------------------------------------|--------|------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------|------------|----------------|------------|-----------------------------------------------------------------|-------------|--------------------------------------|------------|-------------------------------------------------------------------------------------|--------|
|                                    |   | (US$                000’s)                                                   |       |
| License                acquisition cost |   | $                                                                                  | 1,506      |                                                                                         |       | -              |       |                                                            | -           |                                 |       | -                                                                                   |   |   | - |   | $ | 1,506 |   |
| Broadcast                license        |   | $                                                                                  | 13,069     |                                                                                         |       | 175,126        |       |                                                            | (18,604     | )                                    |       | (5,057                                                                              | )      |   | (4,978 | ) | $ | 159,556 |   |
| Trademarks                              |   | $                                                                                  | 10,519     |                                                                                         |       | 26,802         |       |                                                            | (7,021      | )                                    |       | -                                                                                   |   |   | (773 | ) | $ | 29,527 |   |
| Customer                relationships   |   | $                                                                                  | 2,237      |                                                                                         |       | 12,847         |       |                                                            | -           |                                 |       | (779                                                                                | )      |   | (337 | ) | $ | 13,968 |   |
| **Total**                               |   | **$**                                                                              | **27,331** |                                                                                         | **$**      | **214,775**    |       | **$**                                                           | **(25,625** | **)**                                | **$**      | **(5,836**                                                                          | **)**  | **$** | **(6,088** | **)** | **$** | **204,557** |   |

----

*Index*

| **8.** | **Other                Assets** |
|--------|---------------------------------|

|                                   |   | **As                at September****30,                2005** |       | **As                at****December****31,                2004** |   |
|----------------------------------------|--------|---------------------------------------------------------------|------------|-----------------------------------------------------------------|--------|
|                                   |   | **US$                000’s**                            |       | **US$                000’s**                              |   |
| Current:                               |   |                                                          |       |                                                            |   |
| Prepaid                programming     |   | $                                                             | 16,829     |                                                            | $      | 2,837 |   |
| Other                prepaid expenses  |   |                                                          | 9,985      |                                                            |   | 6,189 |   |
| VAT                recoverable         |   |                                                          | 5,429      |                                                            |   | 664 |   |
| Income                taxes receivable |   |                                                          | 4,656      |                                                            |   | - |   |
| Capitalized                debt costs  |   |                                                          | 2,237      |                                                            |   | - |   |
| Assets                held for sale    |   |                                                          | 245        |                                                            |   | - |   |
| Other                                  |   |                                                          | 6,774      |                                                            |   | 1,324 |   |
|                                   |   | **$**                                                         | **46,155** |                                                            | **$**  | **11,014** |   |
|                                   |   |                                                          |       |                                                            |   |   |   |
| Non-Current:                           |   |                                                          |       |                                                            |   |   |   |
| Capitalized                debt costs  |   | $                                                             | 12,164     |                                                            | $      | - |   |
| Other                                  |   |                                                          | 4,284      |                                                            |   | 1,467 |   |
|                                   |   | **$**                                                         | **16,448** |                                                            | **$**  | **1,467** |   |

| **9.** | **Accounts                Payable and Accrued                Liabilities** |
|--------|----------------------------------------------------------------------------|

|                                       |   | **As                  at September****30,****2005** |        | **As                  at December 31, 2004** |   |
|--------------------------------------------|--------|-----------------------------------------------------|-------------|----------------------------------------------|--------|
| Current:                                   |   | **US$                  000’s**                |        | **US$                  000’s**         |   |
| Accounts                  payable          |   | $                                                   | 20,665      |                                         | $      | 16,642 |   |
| Programming                  liabilities   |   |                                                | 31,200      |                                         |   | 22,156 |   |
| Accrued                  interest payable  |   |                                                | 15,165      |                                         |   | - |   |
| Other                  accrued liabilities |   |                                                | 40,330      |                                         |   | 28,244 |   |
|                                       |   | **$**                                               | **107,360** |                                         | **$**  | **67,042** |   |
|                                       |   |                                                |        |                                         |   |   |   |
| Non-Current:                               |   |                                                |        |                                         |   |   |   |
| Programming                  liabilities   |   | $                                                   | 4,689       |                                         | $      | 734 |   |
| Other                                      |   |                                                | 600         |                                         |   | - |   |
|                                       |   | **$**                                               | **5,289**   |                                         | **$**  | **734** |   |

----

*Index*

| **10.** | **Settlement                Liability** |
|---------|-----------------------------------------|

|                                        |   | **As                  at September****30,                  2005** |   | **As                  at December 31, 2004** |   |
|---------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                        |   | **US$                  000’s**                              |   | **US$                  000’s**         |   |
| Current:                                    |   |                                                              |   |                                         |   |
| Settlement                  liability       |   | $                                                                 | 1,060  |                                         | $      | - |   |
|                                        |   |                                                              |   |                                         |   |   |   |
| Long-term:                                  |   |                                                              |   |                                         |   |   |   |
| Settlement                  liability  |   | $                                                                 | 50,475 |                                         | $      | - |   |

| **11.** | **Senior                Notes** |
|---------|---------------------------------|

----

*Index*

|                                       |   | **Euro                245 million 8.25%****Senior                Notes** |   |                                       |   | **Euro                125 million floating****rate                Senior Notes** |
|--------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------------------------------------------|--------|----------------------------------------------------------------------------------|
| **From:**                                  |   | **Redemption                Price**                                      |   | **From:**                                  |   | **Redemption                Price**                                              |
| May                15, 2009                |   | 104.125%                                                                 |   | May                15, 2007                |   | 102.000%                                                                         |
| May                15, 2010                |   | 102.063%                                                                 |   | May                15, 2008                |   | 101.000%                                                                         |
| May                15, 2011 and thereafter |   | 100.00%                                                                  |   | May                15, 2009 and thereafter |   | 100.000%                                                                         |

| **12.** | **Segment                Data** |
|---------|---------------------------------|

----

*Index*

| · | expenses                presented as corporate expenses in our consolidated statements of                operations (i.e., corporate operating costs, stock-based compensation                and                amortization of intangibles); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

*Index*

|                                                                                                                                                                                                                                                      |   | **SEGMENT                FINANCIAL INFORMATION****For                the Three Months Ended September 30,****(US                $000's)** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                                                                                                                                      |   | **Segment                Net Revenues (1)**                                                                                               |       | **Segment                EBITDA** |   |
|                                                                                                                                                                                                                                                      |   | **2005**                                                                                                                                  |       | **2004** |   | **2005** |   | **2004** |   |
| **Country**                                                                                                                                                                                                                                               |   |                                                                                                                                      |       |   |   |   |   |   |   |
| Croatia                (NOVA TV)                                                                                                                                                                                                                          |   | $                                                                                                                                         | 4,183      |   | $ | 3,740 |   | $ | (4,786 | ) | $ | (1,648 | ) |
| Czech                Republic (TV NOVA, GALAXIE SPORT)                                                                                                                                                                                                    |   |                                                                                                                                      | 40,883     |   |   | - |   |   | 11,940 |   |   | - |   |
| Romania                (2)                                                                                                                                                                                                                                |   |                                                                                                                                      | 21,138     |   |   | 16,089 |   |   | 7,831 |   |   | 4,432 |   |
| Slovak                Republic (MARKIZA TV)                                                                                                                                                                                                               |   |                                                                                                                                      | 11,720     |   |   | 9,892 |   |   | 876 |   |   | 122 |   |
| Slovenia                (POP TV and KANAL A)                                                                                                                                                                                                              |   |                                                                                                                                      | 7,655      |   |   | 7,576 |   |   | 1,032 |   |   | 1,073 |   |
| Ukraine                (STUDIO 1+1)                                                                                                                                                                                                                       |   |                                                                                                                                      | 13,208     |   |   | 9,930 |   |   | 2,483 |   |   | (342 | ) |
| **Total                Segment Data**                                                                                                                                                                                                                     |   | **$**                                                                                                                                     | **98,787** |   | **$** | **47,227** |   | **$** | **19,376** |   | **$** | **3,637** |   |
|                                                                                                                                                                                                                                                      |   |                                                                                                                                      |       |   |   |   |   |   |   |   |   |   |   |
| **Reconciliation                to Consolidated Statement of Operations:**                                                                                                                                                                                |   |                                                                                                                                      |       |   |   |   |   |   |   |   |   |   |   |
| **Consolidated                Net Revenues / Income before provision for income taxes, minority                interest, equity in income of unconsolidated affiliates and discontinued                operations**                                       |   | **$**                                                                                                                                     | **87,067** |   | **$** | **36,543** |   | **$** | **(5,050** | **)** | **$** | **(5,401** | **)** |
| Corporate                operating costs (including non-cash stock-based compensation (see                Note 15)                of $ 0.6 million and $ 2.7 million for the three months ended September                30, 2005 and 2004, respectively) |   |                                                                                                                                      | -          |   |   | - |   |   | 4,800 |   |   | 8,202 |   |
|                                                                                                                                                                                                                                                      |   |                                                                                                                                      |       |   |   |   |   |   |   |   |   |   |   |
| Unconsolidated                equity affiliates (3)                                                                                                                                                                                                       |   |                                                                                                                                      | 11,720     |   |   | 10,684 |   |   | 876 |   |   | 91 |   |
| Station                depreciation                                                                                                                                                                                                                       |   |                                                                                                                                      | -          |   |   | - |   |   | 8,908 |   |   | 2,080 |   |
| Interest                income                                                                                                                                                                                                                            |   |                                                                                                                                      | -          |   |   | - |   |   | (1,716 | ) |   | (960 | ) |
| Interest                expense                                                                                                                                                                                                                           |   |                                                                                                                                      | -          |   |   | - |   |   | 11,574 |   |   | 599 |   |
| Foreign                currency exchange gain, net                                                                                                                                                                                                        |   |                                                                                                                                      | -          |   |   | - |   |   | (856 | ) |   | (1,133 | ) |
| Other                expense                                                                                                                                                                                                                              |   |                                                                                                                                      | -          |   |   | - |   |   | 840 |   |   | 159 |   |
| **Total                Segment Data**                                                                                                                                                                                                                     |   | **$**                                                                                                                                     | **98,787** |   | **$** | **47,227** |   | **$** | **19,376** |   | **$** | **3,637** |   |

----

*Index*

|                                                                                                                                                                                                                                                                    |   | **SEGMENT                FINANCIAL INFORMATION****For                the Nine Months Ended September 30,****(US                $000's)** |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|-------------|
|                                                                                                                                                                                                                                                                    |   | **Segment                Net Revenues (1)**                                                                                              |        | **Segment                EBITDA** |   |
|                                                                                                                                                                                                                                                                    |   | **2005**                                                                                                                                 |        | **2004** |   | **2005** |   | **2004** |   |
| **Country**                                                                                                                                                                                                                                                             |   |                                                                                                                                     |        |   |   |   |   |   |   |
| Croatia                (NOVA TV)                                                                                                                                                                                                                                        |   | $                                                                                                                                        | 16,791      |   | $ | 3,740 |   | $ | (9,547 | ) | $ | (1,648 | ) |
| Czech                Republic (TV NOVA, GALAXIE SPORT)                                                                                                                                                                                                                  |   |                                                                                                                                     | 88,647      |   |   | - |   |   | 40,226 |   |   | - |   |
| Romania                (2)                                                                                                                                                                                                                                              |   |                                                                                                                                     | 66,786      |   |   | 48,875 |   |   | 25,969 |   |   | 14,670 |   |
| Slovak                Republic (MARKIZA TV)                                                                                                                                                                                                                             |   |                                                                                                                                     | 43,990      |   |   | 39,235 |   |   | 11,002 |   |   | 9,846 |   |
| Slovenia                (POP TV and KANAL A)                                                                                                                                                                                                                            |   |                                                                                                                                     | 31,509      |   |   | 30,984 |   |   | 10,202 |   |   | 11,860 |   |
| Ukraine                (STUDIO 1+1)                                                                                                                                                                                                                                     |   |                                                                                                                                     | 44,747      |   |   | 35,284 |   |   | 9,768 |   |   | 8,910 |   |
| **Total                Segment Data**                                                                                                                                                                                                                                   |   | **$**                                                                                                                                    | **292,470** |   | **$** | **158,118** |   | **$** | **87,620** |   | **$** | **43,638** |   |
|                                                                                                                                                                                                                                                                    |   |                                                                                                                                     |        |   |   |   |   |   |   |   |   |   |   |
| **Reconciliation                to Consolidated Statement of Operations:**                                                                                                                                                                                              |   |                                                                                                                                     |        |   |   |   |   |   |   |   |   |   |   |
| **Consolidated                Net Revenues / Income before provision for income taxes, minority                interest, equity in income of unconsolidated affiliates and discontinued                operations**                                                     |   | **$**                                                                                                                                    | **248,480** |   | **$** | **117,277** |   | **$** | **20,208** |   | **$** | **8,045** |   |
| Corporate                operating costs (including non-cash stock-based compensation (see                Note 15)                of $ 2.3 million and $ 7.0 million for the nine months ended September                30,                2005 and 2004, respectively) |   |                                                                                                                                     | -           |   |   | - |   |   | 15,982 |   |   | 20,426 |   |
| Impairment                charge                                                                                                                                                                                                                                        |   |                                                                                                                                     | -           |   |   | - |   |   | 35,331 |   |   | - |   |
| Unconsolidated                equity affiliates (3)                                                                                                                                                                                                                     |   |                                                                                                                                     | 43,990      |   |   | 40,841 |   |   | 11,002 |   |   | 10,214 |   |
| Station                depreciation                                                                                                                                                                                                                                     |   |                                                                                                                                     | -           |   |   | - |   |   | 15,903 |   |   | 4,940 |   |
| Interest                income                                                                                                                                                                                                                                          |   |                                                                                                                                     | -           |   |   | - |   |   | (3,354 | ) |   | (3,200 | ) |
| Interest                expense                                                                                                                                                                                                                                         |   |                                                                                                                                     | -           |   |   | - |   |   | 18,305 |   |   | 1,484 |   |
| Foreign                currency exchange (gain)/loss, net                                                                                                                                                                                                               |   |                                                                                                                                     | -           |   |   | - |   |   | (30,286 | ) |   | 789 |   |
| Other                expense                                                                                                                                                                                                                                            |   |                                                                                                                                     | -           |   |   | - |   |   | 4,529 |   |   | 940 |   |
| **Total                Segment Data**                                                                                                                                                                                                                                   |   | **$**                                                                                                                                    | **292,470** |   | **$** | **158,118** |   | **$** | **87,620** |   | **$** | **43,638** |   |

----

*Index*

| **13.** | **Summary                Financial Information for Significant Unconsolidated                Affiliates** |
|---------|-----------------------------------------------------------------------------------------------------------|

|                                   |   | **STS                (MARKIZA TV)**            |       |
|----------------------------------------|--------|------------------------------------------------|------------|
|                                   |   | **As                at September 30,****2005** |       | **As                at December 31, 2004** |   |
|                                   |   | **(US$                000's)**                 |       | **(US$                000's)** |   |
| Current                assets          |   | $                                              | 23,513     |   | $ | 25,548 |   |
| Non-current                assets      |   |                                           | 17,981     |   |   | 16,919 |   |
| Current                liabilities     |   |                                           | (24,363    | ) |   | (15,445 | ) |
| Non-current                liabilities |   |                                           | (115       | ) |   | (149 | ) |
| Net                Assets              |   | **$**                                          | **17,016** |   | **$** | **26,873** |   |

|                                                                     |   | **STS                (MARKIZA TV)**                                           |    |
|--------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------|
|                                                                     |   | **For                the Three Months Ended****September                30,** |    | **For                the Nine Months Ended****September                30,** |   |
|                                                                     |   | **2005**                                                                      |    | **2004** |   | **2005** |   | **2004** |   |
|                                                                     |   | **(US$                000's)**                                                |    |
| Net                revenues                                              |   | $                                                                             | 11,720  |   | $ | 9,892 |   | $ | 43,990 |   | $ | 39,235 |   |
| Operating                costs                                           |   |                                                                          | (11,375 | ) |   | (10,211 | ) |   | (34,628 | ) |   | (30,947 | ) |
| Operating                income                                          |   |                                                                          | 345     |   |   | (319 | ) |   | 9,362 |   |   | 8,288 |   |
| Net                income                                                |   |                                                                          | 101     |   |   | (23 | ) |   | 7,185 |   |   | 7,471 |   |
| Movement                in accumulated other comprehensive income/(loss) |   |                                                                          | (1,193  | ) |   | (109 | ) |   | 188 |   |   | (278 | ) |

| **14.** | **Earnings                Per Share** |
|---------|---------------------------------------|

|                                                         |   | **For                the Three Months Ended September 30,**        |       |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|
|                                                         |   | **Net                Income/(Loss)****(US$                000's)** |       | **Common                Shares (000's)** |   | **Net                Income/(Loss) per****Common                Share** |   |
|                                                         |   | **2005**                                                           |       | **2004** |   | **2005** |   | **2004                (as restated)** |   | **2005** |   | **2004                (as restated)** |   |
| Basic                EPS                                     |   |                                                               |       |   |   |   |   |   |   |   |   |   |   |
| Net                loss attributable to common stock         |   | $                                                                  | (9,614     | ) | $ | (5,647 | ) |   | 37,883 |   |   | 28,167 |   | $ | (0.25 | ) | $ | (0.20 | ) |
| Effect                of dilutive securities : stock options |   |                                                               | -          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Diluted                EPS                                   |   |                                                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss attributable to common stock         |   | **$**                                                              | **(9,614** | **)** | **$** | **(5,647** | **)** |   | **37,883** |   |   | **28,167** |   | **$** | **(0.25** | **)** | **$** | **(0.20** | **)** |

----

*Index*

|                                                         |   | **For                the Nine Months Ended September 30,**  |      |
|--------------------------------------------------------------|--------|-------------------------------------------------------------|-----------|
|                                                         |   | **Net                Income****(US$                000's)** |      | **Common                Shares (000's)** |   | **Net                Income per****Common                Share** |   |
|                                                         |   | **2005**                                                    |      | **2004** |   | **2005** |   | **2004                (as****restated)** |   | **2005** |   | **2004                (as****restated)** |   |
| Basic                EPS                                     |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| Net                income attributable to common stock       |   | $                                                           | 7,896     |   | $ | 5,557 |   |   | 33,549 |   |   | 27,705 |   | $ | 0.24 |   | $ | 0.20 |   |
| Effect                of dilutive securities : stock options |   |                                                        | -         |   |   | - |   |   | 829 |   |   | 1,316 |   |   | (0.01 | ) |   | (0.01 | ) |
| Diluted                EPS                                   |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income attributable to common stock       |   | **$**                                                       | **7,896** |   | **$** | **5,557** |   |   | **34,378** |   |   | **29,021** |   | **$** | **0.23** |   | **$** | **0.19** |   |

*Restatement      of 2004 Earnings Per Share*

----

*Index*

|                                                                                                    |   | **For                the three months****ended                September 30, 2004** |   | **For                the nine months****ended                September 30, 2004** |   |
|---------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|
|                                                                                                    |   | **As****previously****reported**                                                   |   |  **As                restated**                                              |   | **As****previously****reported** |   |  **As                restated** |   |
| Continuing                operations - Basic                                                            |   |                                                                               |   |                                                                              |   |   |   |   |   |
| Income/(loss)                from continuing operations per share                                       |   | $                                                                                  | (0.23  | )                                                                                 | $      | (0.23 | ) | $ | 0.16 |   | $ | 0.17 |   |
| Weighted                average common shares used in computing per share amounts                (000s) |   |                                                                               | 28,359 |                                                                              |   | 28,167 |   |   | 28,359 |   |   | 27,705 |   |
| Continuing                operations - Diluted                                                          |   |                                                                               |   |                                                                              |   |   |   |   |   |   |   |   |   |
| Income/(loss)                from continuing operations per share                                       |   | $                                                                                  | (0.23  | )                                                                                 | $      | (0.23 | ) | $ | 0.15 |   | $ | 0.16 |   |
| Weighted                average common shares used in computing per share amounts                (000s) |   |                                                                               | 28,359 |                                                                              |   | 28,167 |   |   | 30,110 |   |   | 29,021 |   |
| Discontinued                operations - Basic                                                          |   |                                                                               |   |                                                                              |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations per share                                            |   | $                                                                                  | 0.03   |                                                                              | $      | 0.03 |   | $ | 0.03 |   | $ | 0.03 |   |
| Weighted                average common shares used in computing per share amounts                (000s) |   |                                                                               | 28,359 |                                                                              |   | 28,167 |   |   | 28,359 |   |   | 27,705 |   |
| Discontinued                operations - Diluted                                                        |   |                                                                               |   |                                                                              |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations per share                                            |   | $                                                                                  | 0.03   |                                                                              | $      | 0.03 |   | $ | 0.03 |   | $ | 0.03 |   |
| Weighted                average common shares used in computing per share amounts                (000s) |   |                                                                               | 30,110 |                                                                              |   | 28,167 |   |   | 30,110 |   |   | 29,021 |   |
| Net                Income -Basic                                                                        |   |                                                                               |   |                                                                              |   |   |   |   |   |   |   |   |   |
| Net                Income/(loss) per share                                                              |   | $                                                                                  | (0.20  | )                                                                                 | $      | (0.20 | ) | $ | 0.19 |   | $ | 0.20 |   |
| Weighted                average common shares used in computing per share amounts                (000s) |   |                                                                               | 28,359 |                                                                              |   | 28,167 |   |   | 28,359 |   |   | 27,705 |   |
| Net                Income - Diluted                                                                     |   |                                                                               |   |                                                                              |   |   |   |   |   |   |   |   |   |
| Net                Income/(loss) per share                                                              |   | $                                                                                  | (0.20  | )                                                                                 | $      | (0.20 | ) | $ | 0.18 |   | $ | 0.19 |   |
| Weighted                average common shares used in computing per share amounts                (000s) |   |                                                                               | 28,359 |                                                                              |   | 28,167 |   |   | 30,110 |   |   | 29,021 |   |

| **15.** | **Stock-based                Compensation** |
|---------|---------------------------------------------|

**2005      Option Grants**

| **Date                of Option Grant** |   | **Options****granted** |   | **Risk                Free****Interest                Rate** |   | **Expected                life** |   | **Expected****volatility** |
|-----------------------------------------|--------|------------------------|--------|--------------------------------------------------------------|--------|----------------------------------|--------|----------------------------|
| June                2, 2005             |   | 122,000                |   | 3.74%                                                        |   | 6.25                years        |   | 53.24%                     |

----

*Index*

**2004      Option Grants**

| **Date                of Option Grant** |   | **Options****granted** |   | **Risk                Free****Interest                Rate** |   | **Expected                life** |   | **Expected****volatility** |
|-----------------------------------------|--------|------------------------|--------|--------------------------------------------------------------|--------|----------------------------------|--------|----------------------------|
| February                2, 2004         |   | 160,000                |   | 3.18%                                                        |   | 6                years           |   | 51.5%                      |
| May                3, 2004              |   | 10,000                 |   | 3.63%                                                        |   | 6                years           |   | 51.5%                      |
| May                5, 2004              |   | 20,000                 |   | 3.71%                                                        |   | 6                years           |   | 51.5%                      |
| June                2, 2004             |   | 112,000                |   | 3.91%                                                        |   | 6                years           |   | 51.5%                      |

----

*Index*

**Stock-Based      Compensation**

|                                                                                                   |   | **For                the Three****Months                Ended****September                30,** |    | **For                the Nine****Months                Ended****September                30,** |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   | **(US$                000’s)**                                                            |    |
|                                                                                                   |   | **2005**                                                                                        |    | **2004**                                                                                       |   | **2005** |   | **2004** |   |
| Stock-based                compensation charged under FIN 44 (Variable Plan                Accounting) |   | $                                                                                               | -       |                                                                                           | $      | 2,443 |   | $ | 746 |   | $ | 6,316 |   |
| Stock-based                compensation charged under SFAS 123                                         |   |                                                                                            | 616     |                                                                                           |   | 267 |   |   | 1,552 |   |   | 647 |   |
| **Total                stock-based compensation**                                                      |   | **$**                                                                                           | **616** |                                                                                           | **$**  | **2,710** |   | **$** | **2,298** |   | **$** | **6,963** |   |

**Outstanding      Stock Options**

| **16.** | **Commitments                and Contingencies** |
|---------|--------------------------------------------------|

*Litigation*

*General*

*Croatia*

----

*Index*

*Czech      Republic*

*Claims      Relating to the Vilja Shareholding in CET 21*

*Disposition      of the CET 21 Interest Held by CET 21*

----

*Index*

*Claims      brought by Alan, Huncik, Venclik and Gal*

*Claims      Relating to the Interests of CS and CEDC in CET 21*

*Other      Claims*

----

*Index*

*Romania*

*Slovenia*

*Slovak      Republic*

*Ukraine*

----

*Index*

*Financial      Commitments — Existing Entities*

*Licenses*

*Station      Programming Rights Agreements*

*Operating      Lease Commitments *

|                               |   | **As                at September 30,                2005** **(US$                000’s)** |       |
|------------------------------------|--------|------------------------------------------------------------------------------------------------------|------------|
| 2005                               |   | $                                                                                                    | 7,107      |   |
| 2006                               |   |                                                                                                 | 5,289      |   |
| 2007                               |   |                                                                                                 | 1,619      |   |
| 2008                               |   |                                                                                                 | 920        |   |
| 2009                               |   |                                                                                                 | 694        |   |
| 2010                and thereafter |   |                                                                                                 | 272        |   |
| **Total**                          |   | **$**                                                                                                | **15,901** |   |

*Dutch      Tax*

----

*Index*

*Romania      - Put Options*

*Czech      Republic - Guarantee and Factoring of Trade Receivables*

*‘Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities’*

| **17.** | **Acquisition                Costs** |
|---------|--------------------------------------|

|                             |   | **As                at September 30,****2005** |                           | **As                at December 31, 2004** |   |
|----------------------------------|--------|------------------------------------------------|--------------------------------|--------------------------------------------|--------|
|                             |   |                                           | **(US$                000's)** |                                       |   | **(US$                000's)** |   |
| Acquisition                costs |   | **$**                                          | **-**                          |                                       | **$**  | **10,770** |   |

----

*Index*

| **18.** | **Subsequent                Events** |
|---------|--------------------------------------|

----

*Index*

| **Item                2.** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

***Contents***

| ***I.***   | ***Forward-looking                Statements***                                |
|------------|--------------------------------------------------------------------------------|
|       |                                                                           |
| ***II.***  | ***Executive                Summary***                                         |
|       |                                                                           |
| ***III.*** | ***Analysis                of Segment Results***                               |
|       |                                                                           |
| ***IV.***  | ***Analysis                of the Results of Consolidated Operations***        |
|       |                                                                           |
| ***V.***   | ***Liquidity                and Capital Resources***                           |
|       |                                                                           |
| ***VI.***  | ***Critical                Accounting Policies and                Estimates*** |

| ***I.*** | ***Forward-looking                Statements*** |
|----------|-------------------------------------------------|

*This      report contains forward-looking statements, including statements regarding      strategies for expected investments in the Slovak Republic and Ukraine, the      effect of additional investment in Croatia, the growth of television advertising      in our markets, the future economic conditions in our markets, future      investments in television broadcast operations, the growth potential of      advertising spending in our markets, and other business strategies and      commitments. For these statements and all other forward-looking statements,      we      claim the protection of the safe harbor for forward-looking statements contained      in the Private Securities Litigation Reform Act of 1995. Forward-looking      statements are inherently subject to risks and uncertainties, many of which      cannot be predicted with accuracy or are otherwise beyond our control and some      of which might not even be anticipated. Future events and actual results,      affecting our strategic plan as well as our financial position, results of      operations and cash flows, could differ materially from those described in      or      contemplated by the forward-looking statements. Important factors that      contribute to such risks include, but are not limited to*
***,***
*      the      rate of development of advertising markets in countries where we operate,      general market and economic conditions in these countries as well as in the      United States and Western Europe, the renewals of broadcasting licenses, our      ability to acquire programming and the ability to attract audiences, the general      regulatory environments where we operate and application of relevant laws and      regulations.*

| ***II.*** | ***Executive                Summary*** |
|-----------|----------------------------------------|

*Continuing      Operations*

|                                               |   | **For                the Three Months Ended September 30,****(US$                000's)** |       |
|----------------------------------------------------|--------|-------------------------------------------------------------------------------------------|------------|
|                                               |   | **2005**                                                                                  |       | **2004** |   | ***Movement*** |   |
| Net                Revenues                        |   | $                                                                                         | 87,067     |   | $ | 36,543 |   | *$* | *50,524* |   |
| Operating                income/(loss)             |   |                                                                                      | 4,792      |   |   | (6,736 | ) |   | *11,528* |   |
| Net                loss from continuing operations |   |                                                                                      | (6,282     | ) |   | (6,590 | ) |   | *308* |   |
| **Net                loss**                        |   | **$**                                                                                     | **(9,614** | **)** | **$** | **(5,647** | **)** | ***$*** | ***(3,967*** | ***)*** |

----

*Index*

|                                                                                      |   | **For                the Nine Months Ended September 30,****(US$                000's)** |       |
|-------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|------------|
|                                                                                      |   | **2005**                                                                                 |       | **2004** |   | ***Movement*** |   |
| Net                Revenues                                                               |   | $                                                                                        | 248,480    |   | $ | 117,277 |   | *$* | *131,203* |   |
| Operating                income                                                           |   |                                                                                     | 9,402      |   |   | 8,058 |   |   | *1,344* |   |
| Net                income from continuing operations                                      |   |                                                                                     | 13,272     |   |   | 4,659 |   |   | *8,613* |   |
| **Net                income**                                                             |   | **$**                                                                                    | **7,896**  |   | **$** | **5,557** |   | ***$*** | ***2,339*** |   |
| **Net                cash generated from continuing operating                activities** |   | **$**                                                                                    | **44,543** |   | **$** | **3,640** |   | ***$*** | ***40,903*** |   |

| · | In                the three months ended September 30, 2005 our total operating Segments                achieved a Segment EBITDA margin of 20% compared to 8% for the three                months ended September 30, 2004 (Segment EBITDA is defined and reconciled                to                our consolidated US GAAP results in Item 1, Note 12, "Segment                Data"). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                July 29, 2005, we increased our stake in our Romanian operations                to 85% by                acquiring 3% of Pro TV and MPI from Mr                Sarbu. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                September 1, 2005, we acquired 100% of Galaxie Sport, which operates                the                leading sports cable channel GALAXIE SPORT in the Czech and Slovak                Republics. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                July 29, 2005, Pro Plus (Slovenia) signed a revolving facility                agreement for up to Euro 37.5 million  (approximately US$ 45.2                million) in aggregate principal amount                ("Revolver")  with ING Bank N.V.,  Nova Ljubljanska                Banka d.d., Ljubljana and Bank Austria Creditanstalt d.d., Ljubljana                to be                used for general corporate purposes. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Future      Developments*

| · | On                October 27, 2005, our Czech license company CET 21 entered into a                revolving credit facility agreement for up to CZK 1.2 billion                (approximately US$ 48.9 million) in aggregate principal amount (the                “Facility”) with Ceska sporitelna, a.s. (“CS”), at an interest rate of                PRIBOR, EURIBOR or LIBOR (depending on the currency of the borrowing)                plus                1.95%. (For further information see Item 1, Note 18, “Subsequent                Events”). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                October 28, 2005, we entered into an agreement with Dertus Finance                Group                Limited (“Dertus”) providing for the purchase by us of a 65.5% interest in                Ukrpromtorg 2003 Ltd. (“Ukrpromtorg”), a company that owns and operates                the Gravis television channel and two other local channels in Ukraine,                for                a total investment of approximately US$ 7.0 million. The acquisition                of                additional distribution capacity in the Ukraine is intended to complement                STUDIO 1+1 and to allow the costs of our Ukrainian operations to                be                allocated across multiple channels. (For further information see                Item 1,                Note 18, “Subsequent Events”). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                October 28, 2005, we entered into an agreement with Pavol Rusko,                providing                for the purchase by us of his entire 34% interest in A.R.J. a.s.                (“A.R.J.”) for consideration of approximately SKK 575 million (US$ 17.8                million). At present A.R.J. owns 50% of the voting rights in Markiza,                the                license-holding company for MARKIZA TV. On October 31, 2005, we entered                into an agreement with Media Partner s.r.o. (“Media Partner”), Salis                s.r.o. Jan Kovacik and Milan Fil’o, providing for the purchase by us of                their entire 66% interest in A.R.J. for consideration of approximately                US$                10.7 million. On completion of both transactions, we will own (directly                and indirectly) an 80% voting interest in Markiza and a voting interest                of                approximately 90% in STS. In addition, we will own an 80% economic                interest in the Slovak operations. The remaining 20% voting and economic                interest in Markiza will be held by Media Invest s.r.o., currently                a                participant in Markiza. Following completion, we intend to consolidate                all                broadcasting operations into Markiza. (For further information see                Item 1,                Note 18, “Subsequent Events”). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| · | Following the successful implementation of the agreement              with Mr. Krsak, the termination of litigation surrounding the TV Nova              (Czech Republic) Group that was initiated by him is nearing completion.              This will facilitate a reorganization of the operating structure of              the TV              Nova (Czech Republic) Group in order to consolidate broadcasting              operations into the license holding              company. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | In                connection with our on-going review of our Croatian operations and                following a strategic assessment of the performance of Nova TV (Croatia)                undertaken during the second quarter, we modified our strategy for                Croatia                in late June 2005. This new strategy requires higher current expenditures                than had been planned prior to the strategic assessment in order                to secure                our audience and market share targets. In order to achieve these                targets,                we have increased our budget for the acquisition of higher quality                foreign                and domestic programming for 2005 and 2006, for marketing and promotion                (including improvements to the on-air look of Nova TV (Croatia)),                and                accelerated investment for the extension of our technical reach.                We expect                total investment to be in excess of US$ 27 million during 2005. We                expect                that our Croatian operations will approach EBITDA break-even in                2007. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| ***III.*** | ***Analysis                of Segment Results*** |
|------------|--------------------------------------------------|

**OVERVIEW**

| **SEGMENT                FINANCIAL INFORMATION****For                the Three Months Ended September 30, (US $000's)** |       |
|-------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                    |       | **2005** | ** ** | **(1)** | ** ** | **2004** | ** ** | **(1)** | ** ** |
| **Segment                Net Revenue**                                                                                  | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |   |   |
| Croatia                (NOVA TV)                                                                                        |       | $ | 4,183 |   |   | 4 | % | $ | 3,740 |   |   | 8 | % |
| Czech                Republic (TV NOVA, GALAXIE SPORT)                                                                  |       |   | 40,883 |   |   | 41 | % |   | - |   |   | - | % |
| Romania                (2)                                                                                              |       |   | 21,138 |   |   | 22 | % |   | 16,089 |   |   | 34 | % |
| Slovak                Republic (MARKIZA TV)                                                                             |       |   | 11,720 |   |   | 12 | % |   | 9,892 |   |   | 21 | % |
| Slovenia                (POP TV and KANAL A)                                                                            |       |   | 7,655 |   |   | 8 | % |   | 7,576 |   |   | 16 | % |
| Ukraine                (STUDIO 1+1)                                                                                     |       |   | 13,208 |   |   | 13 | % |   | 9,930 |   |   | 21 | % |
| **Total                Segment Net Revenue**                                                                            |       | **$** | **98,787** | ** ** | ** ** | **100** | **%   ** | **$** | **47,227** | ** ** | ** ** | **100** | **%** |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                EBITDA**                                                                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Croatia                (NOVA TV)                                                                                        |       | $ | (4,786 | ) |   | (25 | )% | $ | (1,648 | ) |   | (45 | )% |
| Czech                Republic (TV NOVA)                                                                                 |       |   | 11,940 |   |   | 62 | % |   | - |   |   | - | % |
| Romania                (2)                                                                                              |       |   | 7,831 |   |   | 40 | % |   | 4,432 |   |   | 121 | % |
| Slovak                Republic (MARKIZA TV)                                                                             |       |   | 876 |   |   | 5 | % |   | 122 |   |   | 3 | % |
| Slovenia                (POP TV and KANAL A)                                                                            |       |   | 1,032 |   |   | 5 | % |   | 1,073 |   |   | 30 | % |
| Ukraine                (STUDIO 1+1)                                                                                     |       |   | 2,483 |   |   | 13 | % |   | (342 | ) |   | (9 | )% |
| **Total                Segment EBITDA**                                                                                 |       | **$** | **19,376** | ** ** | ** ** | **100** | **%   ** | **$** | **3,637** | ** ** | ** ** | **100** | **%** |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                EBITDA Margin (3)**                                                                            |       |   | 20 | % |   |   |   |   | 8 | % |   |   |   |

----

*Index*

| **SEGMENT                FINANCIAL INFORMATION****For                the Nine Months Ended September 30, (US $000's)** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                   |   | 2005 |   | (1) |   | 2004 |   | (1) |   |
| **Segment                Net Revenue**                                                                                 |   |   |   |   |   |   |   |   |   |
| Croatia                (NOVA TV)                                                                                       |   | $ | 16,791 |   |   | 6 | % | $ | 3,740 |   |   | 2 | % |
| Czech                Republic (TV NOVA, GALAXIE SPORT)                                                                 |   |   | 88,647 |   |   | 30 | % |   | - |   |   | - | % |
| Romania                (2)                                                                                             |   |   | 66,786 |   |   | 23 | % |   | 48,875 |   |   | 31 | % |
| Slovak                Republic (MARKIZA TV)                                                                            |   |   | 43,990 |   |   | 15 | % |   | 39,235 |   |   | 25 | % |
| Slovenia                (POP TV and KANAL A)                                                                           |   |   | 31,509 |   |   | 11 | % |   | 30,984 |   |   | 20 | % |
| Ukraine                (STUDIO 1+1)                                                                                    |   |   | 44,747 |   |   | 15 | % |   | 35,284 |   |   | 22 | % |
| **Total                Segment Net Revenue**                                                                           |   | **$** | **292,470** |   |   | **100** | **%   ** | **$** | **158,118** |   |   | **100** | **%** |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                EBITDA**                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Croatia                (NOVA TV)                                                                                       |   | $ | (9,547 | ) |   | (11 | )% | $ | (1,648 | ) |   | (4 | )% |
| Czech                Republic (TV NOVA, GALAXIE SPORT)                                                                 |   |   | 40,226 |   |   | 46 | % |   | - |   |   | - | % |
| Romania                (2)                                                                                             |   |   | 25,969 |   |   | 29 | % |   | 14,670 |   |   | 34 | % |
| Slovak                Republic (MARKIZA TV)                                                                            |   |   | 11,002 |   |   | 13 | % |   | 9,846 |   |   | 23 | % |
| Slovenia                (POP TV and KANAL A)                                                                           |   |   | 10,202 |   |   | 12 | % |   | 11,860 |   |   | 27 | % |
| Ukraine                (STUDIO 1+1)                                                                                    |   |   | 9,768 |   |   | 11 | % |   | 8,910 |   |   | 20 | % |
| **Total                Segment EBITDA**                                                                                |   | **$** | **87,620** |   |   | **100** | **%   ** | **$** | **43,638** |   |   | **100** | **%** |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                EBITDA Margin (3)**                                                                           |   |   | **30** | **%** |   |   |   |   | **28** | **%** |   |   |   |

----

*Index*

**ANALYSIS      BY GEOGRAPHIC SEGMENT **

| **(A)** | **CROATIA** |
|---------|-------------|

**Market      Background: **

**Three      months ended September 30, 2005 compared to three months ended September 30,      2004**

|                                          |   | **SEGMENT                FINANCIAL INFORMATION**                        |   |
|-----------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                          |   | **For                the Three Months Ended September 30, (US $000's)** |   |
|                                          |   | **2005**                                                                |   | **2004** |   | ***Movement*** |   |
| Croatian                Net Revenues          |   |                                                                    | 4,183  |   |   | 3,740 |   |   | *443* |   |
| Croatian                Segment EBITDA        |   |                                                                    | (4,786 | ) |   | (1,648 | ) |   | *(3,138* | *)* |
| Croatian                Segment EBITDA Margin |   |                                                                    | (114   | )% |   | (44 | )% |   | *(70* | *)%* |

| · | **Net                Revenues**                for the three months ended September 30, 2005 were US$ 4.2 million                compared to US$ 3.7 million for the three months ended September                30, 2004.                In local currency, revenues were 7.5% lower than in the three months                ended                September 30, 2004. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Croatian                Segment EBITDA**for                the three months ended September 30, 2005 was a loss of US$ 4.8 million.                This is due to the cost of re-launching the station, on and off air                promotion, increased transmission costs resulting from a larger                transmission coverage area as well as investment in higher quality                programming. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Nine      months ended September 30, 2005 compared to the nine months ended September      30,      2004**

|                                          |   | **SEGMENT                FINANCIAL INFORMATION**                       |   |
|-----------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                          |   | **For                the Nine Months Ended September 30, (US$ 000's)** |   |
|                                          |   | **2005**                                                               |   | **2004** |   | ***Movement*** |   |
| Croatian                Net Revenues          |   |                                                                   | 16,791 |   |   | 3,740 |   |   | *13,051* |   |
| Croatian                Segment EBITDA        |   |                                                                   | (9,547 | ) |   | (1,648 | ) |   | *(7,899* | *)* |
| Croatian                Segment EBITDA Margin |   |                                                                   | (57    | )% |   | (44 | )% |   | *(13* | *)%* |

| · | **Net                Revenues**for                the nine months ended September 30, 2005** **were                US$ 16.8 million compared to US$ 3.7 million for the period from                the                acquisition date to September 30, 2004. This change also reflects                our                success in securing significant full year spot revenue and                sponsorship contracts with domestic and international                advertisers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Croatian                Segment EBITDA**for                the nine months ended September 30, 2005** **was                a loss of US$ 9.5 million. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| **(B)** | **CZECH                REPUBLIC** |
|---------|-----------------------------------|

**Market      Background: **

**Three      months ended September 30, 2005**

|                                                  |   | **SEGMENT                  FINANCIAL INFORMATION**                                               |   |
|-------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|
|                                                  |   | **For                  the Three Months Ended September 30, (US                  $000's)**  |   |
|                                                  |   |                                                                                             |   | **2005** |   |   |   |
| Czech                  Republic Net Revenues          |   |                                                                                             |   |   |   | 40,883 |   |   |  |   |
| Czech                  Republic Segment EBITDA        |   |                                                                                             |   |   |   | 11,940 |   |   |  |   |
| Czech                  Republic Segment EBITDA Margin |   |                                                                                             |   |   |   | 29 | % |   |  |   |

| · | **Net                Revenues**                for the three months ended September 30, 2005 were US$ 40.9 million.                We                acquired our Czech Republic operations on May 2, 2005 and accordingly                no                comparative data is available. Based on non-US GAAP net revenue                information from management accounts prepared for the three months                ended                September 30, 2004, this represents approximately 6% revenue growth                on a                local currency basis.** **Galaxie                Sport (acquired on September 1, 2005) contributed US$ 0.3 million                to total                net revenue since its acquisition. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Czech                Republic Segment EBITDA**for                the three months ended September 30, 2005 was US$ 11.9 million delivering                an EBITDA margin of 29%. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Nine      months ended September 30, 2005 **

|                                                |   | **SEGMENT                FINANCIAL INFORMATION**                       |   |
|-----------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                |   | **For                the Nine Months Ended September 30, (US $000's)** |   |
|                                                |   |                                                                   |   | **2005** |   |   |   |
| Czech                Republic Net Revenues          |   |                                                                   |   |   |   | 88,647 |   |   |   |   |
| Czech                Republic Segment EBITDA        |   |                                                                   |   |   |   | 40,226 |   |   |   |   |
| Czech                Republic Segment EBITDA Margin |   |                                                                   |   |   |   | 45 | % |   |   |   |

| · | **Net                Revenues**                for the period from the acquisition date of May 2, 2005 to September                30,                2005 were US$ 88.6 million. We acquired our Czech Republic operations                on                May 2, 2005 and accordingly no comparative data is available. Based                on                non-US GAAP net revenue information from management accounts prepared                for                the months of May to September 2004, this represents approximately                12%                revenue growth on a local currency                basis. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Czech                Republic Segment EBITDA**for                the period from May 2, 2005 to September 30, 2005 was US$ 40.2 million                delivering an EBITDA margin of 45%. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| **(C)** | **ROMANIA** |
|---------|-------------|

**Market      Background: **
** **

**Three      months ended September 30, 2005 compared to three months ended September 30,      2004**

|                                          |   | **SEGMENT                FINANCIAL INFORMATION**                        |   |
|-----------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                          |   | **For                the Three Months Ended September 30, (US$ 000's)** |   |
|                                          |   | **2005**                                                                |   | **2004** |   | ***Movement*** |   |
| Romanian                Net Revenues          |   |                                                                    | 21,138 |   |   | 16,089 |   |   | *5,049* |   |
| Romanian                Segment EBITDA        |   |                                                                    | 7,831  |   |   | 4,432 |   |   | *3,399* |   |
| Romanian                Segment EBITDA Margin |   |                                                                    | 37     | % |   | 28 | % |   | *9* | *%* |

| · | **Net                Revenues**for                the three months ended September 30, 2005** **increased                by 31% compared to the three months ended September 30, 2004. This                was due                to growth in advertising prices for PRO TV, ACASA and PRO CINEMA. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Romanian                Segment EBITDA**for                the three months ended September 30, 2005** **increased                by 77% compared to the three months ended September 30, 2004, to                deliver                an EBITDA margin of 37%. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

** **

----

*Index*

**Nine      months ended September 30, 2005 compared to nine months ended September 30,      2004**

|                                          |   | **SEGMENT                FINANCIAL INFORMATION**                       |   |
|-----------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                          |   | **For                the Nine Months Ended September 30, (US$ 000's)** |   |
|                                          |   | **2005**                                                               |   | **2004** |   | ***Movement*** |   |
| Romanian                Net Revenues          |   |                                                                   | 66,786 |   |   | 48,875 |   |   | *17,911* |   |
| Romanian                Segment EBITDA        |   |                                                                   | 25,969 |   |   | 14,670 |   |   | *11,299* |   |
| Romanian                Segment EBITDA Margin |   |                                                                   | 39     | % |   | 30 | % |   | *9* | *%* |

| · | **Net                Revenues**for                the nine months ended September 30, 2005** **increased                by 37% compared to the nine months ended September 30, 2004. This                was due                to an increase in advertising prices and audience market share for                PRO TV,                ACASA and PRO CINEMA. The increased audience market share was due                to                higher ratings and the launch of PRO CINEMA in April 2004. Additionally,                ACASA and PRO CINEMA benefited from increased sell out rates as                advertisers were migrated from PRO                TV. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Romanian                Segment EBITDA**for                the nine months ended September 30, 2005** **increased                by 77% compared to the nine months ended September 30, 2004 to deliver                an                EBITDA margin of 39%. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(D)** | **SLOVAK                REPUBLIC** |
|---------|------------------------------------|

**Market      Background:**

**Three      months ended September 30, 2005 compared to three months ended September 30,      2004**

|                                                 |   | **SEGMENT                FINANCIAL INFORMATION**                        |   |
|------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                                 |   | **For                the Three Months Ended September 30, (US$ 000's)** |   |
|                                                 |   | **2005**                                                                |   | **2004** |   | ***Movement*** |   |
| Slovak                Republic Net Revenues          |   |                                                                    | 11,720 |   |   | 9,892 |   |   | *1,828* |   |
| Slovak                Republic Segment EBITDA        |   |                                                                    | 876    |   |   | 122 |   |   | *754* |   |
| Slovak                Republic Segment EBITDA Margin |   |                                                                    | 7      | % |   | 1 | % |   | *6* | *%* |

| · | **Net                Revenues**for                the three months ended September 30, 2005** **increased                by 18% compared to the three months                ended September 30, 2004. This was due in part to the weakening of                the US                dollar compared to the Slovak koruna. In local currency, net revenues                were                15% greater than in the three months ended September 30, 2004 due                to an                increase in spot pricing, higher volume resulting from increased                telecommunications advertising and some smaller client campaigns                being                brought forward from the fourth quarter to the third                quarter. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| · | **Slova****k                Republic Segment EBITDA**for                the three months ended September 30, 2005 increased by US$ 0.8 million                compared to the three months ended September 30, 2004 to deliver                a Segment                EBITDA margin of 7%. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Nine      months ended September 30, 2005 compared to nine months ended September 30,      2004**

|                                                 |   | **SEGMENT                FINANCIAL INFORMATION**                       |   |
|------------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                 |   | **For                the Nine Months Ended September 30, (US$ 000's)** |   |
|                                                 |   | **2005**                                                               |   | **2004** |   | ***Movement*** |   |
| Slovak                Republic Net Revenues          |   |                                                                   | 43,990 |   |   | 39,235 |   |   | *4,755* |   |
| Slovak                Republic Segment EBITDA        |   |                                                                   | 11,002 |   |   | 9,846 |   |   | *1,156* |   |
| Slovak                Republic Segment EBITDA Margin |   |                                                                   | 25     | % |   | 25 | % |   | *0* | *%* |

| · | **Net                Revenues**for                the nine months ended September 30, 2005 increased by 12% compared                to the                nine months ended September 30, 2004. This was primarily due to the                weakening of the US dollar compared to the Slovak koruna. In local                currency, revenues were 4% greater than the nine months ended September                30, 2004 as a result of increased spending by the telecommunication                sector                and some smaller client campaigns being brought forward from fourth                quarter to third quarter. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Slovak                Republic Segment EBITDA**for                the nine months ended September 30, 2005 increased by 12% compared                to the                nine months ended September 30, 2004, to deliver a Segment EBITDA                margin                of 25%. In local currency, Segment EBITDA increased by 4%. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| **(E)** | **SLOVENIA** |
|---------|--------------|

**Market      Background**

** **

**Three      months ended September 30, 2005 compared to three months ended September 30,      2004**

|                                           |   | **SEGMENT                FINANCIAL INFORMATION**                        |   |
|------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                           |   | **For                the Three Months Ended September 30, (US$ 000's)** |   |
|                                           |   | **2005**                                                                |   | **2004** |   | ***Movement*** |   |
| Slovenian                Net Revenues          |   |                                                                    | 7,655  |   |   | 7,576 |   |   | *79* |   |
| Slovenian                Segment EBITDA        |   |                                                                    | 1,032  |   |   | 1,073 |   |   | *(41* | *)* |
| Slovenian                Segment EBITDA Margin |   |                                                                    | 13     | % |   | 14 | % |   | *(1* | *)%* |

| · | **Net                Revenues**for                the three months ended September 30, 2005** **increased                by 1% compared to the three months ended September 30, 2004. This                is due                to limited growth in non-core advertising revenues such as internet                and                short messaging services revenues. In local currency, net revenue                also                increased by 1%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Slovenian                Segment EBITDA**for                the three months ended September 30, 2005** **decreased                by 4% compared to the three months ended September 30, 2004 to deliver                a                Segment EBITDA margin of 13%. This decrease reflects changes in exchange                rates, as in local currency Segment EBITDA increased by                3%. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Nine      months ended September 30, 2005 compared to nine months ended September 30,      2004**

|                                             |   | **SEGMENT                  FINANCIAL INFORMATION**                       |   |
|--------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                                             |   | **For                  the Nine Months Ended September 30, (US$ 000's)** |   |
|                                             |   | **2005**                                                                 |   | **2004** |   | ***Movement*** |   |
|                                             |   |                                                                     |   |   |   |   |   |
| Slovenian                  Net Revenues          |   |                                                                     | 31,509 |   |   | 30,984 |   |   | *525* |   |
| Slovenian                  Segment EBITDA        |   |                                                                     | 10,202 |   |   | 11,860 |   |   | *(1,658* | *)* |
| Slovenian                  Segment EBITDA Margin |   |                                                                     | 32     | % |   | 38 | % |   | *(6* | *%)* |

| · | **Net                Revenues**for                the nine months ended September 30, 2005** **increased                by 2% compared to the nine months ended September 30, 2004. This                is due to                the weakening of the US dollar compared to the Slovenian tolar. In                local                currency, net revenue decreased by 2% as a result of reduced advertising                expenditure by cellular telephone operators and increased price                competition from state television. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| · | **Slovenian                Segment EBITDA**for                the nine months ended September 30, 2005** **decreased                by 14% compared to the nine months ended September 30, 2004 to deliver                a                Segment EBITDA margin of 32%. In local currency, Segment EBITDA decreased                by 17%. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(F)** | **UKRAINE** |
|---------|-------------|

**Market      Background: **

**Three      months ended September 30, 2005 compared to three months ended September 30,      2004**

|                                           |   | **SEGMENT                FINANCIAL INFORMATION**                        |   |
|------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                           |   | **For                the Three Months Ended September 30, (US$ 000's)** |   |
|                                           |   | **2005**                                                                |   | **2004** |   | ***Movement*** |   |
| Ukrainian                Net Revenues          |   |                                                                    | 13,208 |   |   | 9,930 |   |   | *3,278* |   |
| Ukrainian                Segment EBITDA        |   |                                                                    | 2,483  |   |   | (342 | ) |   | *2,825* |   |
| Ukrainian                Segment EBITDA Margin |   |                                                                    | 19     | % |   | (3 | )% |   | *22* | *%* |

| · | **Net                Revenues**for                the three months ended September 30, 2005** **increased                by 33% compared to the three months ended September 30, 2004. This                is due                to increased volume of advertising sales resulting from broadcasting                a                24-hour schedule following the award of a nine-hour license in July                2004                and increased sell out rate. Sponsorship has also increased year                on year                due to more active management and additional devoted internal resources.                Together these have more than compensated for the decrease in prime-time                ratings for STUDIO 1+1 during the period. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Ukrainian                Segment EBITDA**for                the three months ended September 30, 2005** **increased                by US$ 2.8 million compared to the three months ended September 30,                2004,                to deliver a Segment EBITDA margin of                19%. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**Nine      months ended September 30, 2005 compared to nine months ended September 30,      2004**

|                                           |   | **SEGMENT                FINANCIAL INFORMATION**                       |   |
|------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                           |   | **For                the Nine Months Ended September 30, (US$ 000's)** |   |
|                                           |   | **2005**                                                               |   | **2004** |   | ***Movement*** |   |
| Ukrainian                Net Revenues          |   |                                                                   | 44,747 |   |   | 35,284 |   |   | *9,463* |   |
| Ukrainian                Segment EBITDA        |   |                                                                   | 9,768  |   |   | 8,910 |   |   | *858* |   |
| Ukrainian                Segment EBITDA Margin |   |                                                                   | 22     | % |   | 25 | % |   | *(3* | *)%* |

| · | **Net                Revenues**for                the nine months ended September 30, 2005** **increased                by 27% compared to the nine months ended September 30, 2004. This                is due                to increased volume of advertising sales resulting from broadcasting                a                24-hour schedule following the award of a nine-hour license in July                2004,                as well as an increase in sponsorship sales. Market growth and revenue                generated from a full 24-hour schedule has offset a decrease in prime-time                ratings for STUDIO 1+1 during the period. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Ukrainian                Segment EBITDA**for                the nine months ended September 30, 2005** **increased                by 10% compared to the nine months ended September 30, 2004 resulting                in a                Segment EBITDA margin of 22%. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PROGRAMMING      PAYMENTS AND PROGRAM AMORTIZATION**

|                                   |   | **For                the Three Months****Ended                September 30,** |       | **For                the Nine Months****Ended                September 30,** |   |
|----------------------------------------|--------|-------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------|--------|
|                                   |   | **(US$                000's)**                                                |       |
|                                   |   | **2005**                                                                      |       | **2004**                                                                     |   | **2005** |   | **2004** |   |
| Production                expenses     |   | $                                                                             | 22,475     |                                                                         | $      | 6,764 |   | $ | 45,942 |   | $ | 18,812 |   |
| Program                amortization    |   |                                                                          | 17,995     |                                                                         |   | 10,502 |   |   | 48,931 |   |   | 28,017 |   |
| **Cost                of programming** |   | **$**                                                                         | **40,470** |                                                                         | **$**  | **17,266** |   | **$** | **94,873** |   | **$** | **46,829** |   |

----

*Index*

|                                                            |   | **For                the Three Months****Ended                September 30,** |       | **For                the Nine Months****Ended                September 30,** |   |
|-----------------------------------------------------------------|--------|-------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------|--------|
|                                                            |   | **(US$                000's)**                                                |       |
|                                                            |   | **2005**                                                                      |       | **2004**                                                                     |   | **2005** |   | **2004** |   |
| Program                amortization:                            |   |                                                                          |       |                                                                         |   |   |   |   |   |
| Croatia                (NOVA TV)                                |   | $                                                                             | 2,970      |                                                                         | $      | 1,625 |   | $ | 10,670 |   | $ | 1,625 |   |
| Czech                Republic (TV NOVA)                         |   |                                                                          | 6,375      |                                                                         |   | - |   |   | 9,324 |   |   | - |   |
| Romania                (PRO TV, ACASA and PRO TV INTERNATIONAL) |   |                                                                          | 3,491      |                                                                         |   | 3,759 |   |   | 12,636 |   |   | 12,153 |   |
| Slovenia                (POP TV and KANAL A)                    |   |                                                                          | 1,030      |                                                                         |   | 1,042 |   |   | 3,257 |   |   | 3,697 |   |
| Ukraine                (STUDIO 1+1)                             |   |                                                                          | 4,129      |                                                                         |   | 4,076 |   |   | 13,044 |   |   | 10,542 |   |
|                                                            |   |                                                                          | **17,995** |                                                                         |   | **10,502** |   |   | **48,931** |   |   | **28,017** |   |
| Slovak                Republic (MARKIZA TV)                     |   |                                                                          | 1,983      |                                                                         |   | 2,116 |   |   | 5,215 |   |   | 6,627 |   |
|                                                            |   | **$**                                                                         | **19,978** |                                                                         | **$**  | **12,618** |   | **$** | **54,146** |   | **$** | **34,644** |   |
|                                                            |   |                                                                          |       |                                                                         |   |   |   |   |   |   |   |   |   |
| Cash                paid for programming:                       |   |                                                                          |            |                                                                         |   |   |   |   |  |   |   |  |   |
| Croatia                (NOVA TV)                                |   | $                                                                             | 8,537      |                                                                         | $      | 1,740 |   | $ | 14,016 |   | $ | 1,740 |   |
| Czech                Republic (TV NOVA)                         |   |                                                                          | 7,614      |                                                                         |   | - |   |   | 14,422 |   |   | - |   |
| Romania                (PRO TV, ACASA and PRO TV INTERNATIONAL) |   |                                                                          | 9,240      |                                                                         |   | 2,548 |   |   | 28,850 |   |   | 15,923 |   |
| Slovenia                (POP TV and KANAL A)                    |   |                                                                          | 1,305      |                                                                         |   | 1,159 |   |   | 4,185 |   |   | 3,766 |   |
| Ukraine                (STUDIO 1+1)                             |   |                                                                          | 4,820      |                                                                         |   | 7,680 |   |   | 15,596 |   |   | 16,106 |   |
|                                                            |   |                                                                          | **31,516** |                                                                         |   | **13,127** |   |   | **77,069** |   |   | **37,535** |   |
| Slovak                Republic (MARKIZA TV)                     |   |                                                                          | 2,197      |                                                                         |   | 2,199 |   |   | 7,446 |   |   | 5,898 |   |
|                                                            |   | **$**                                                                         | **33,713** |                                                                         | **$**  | **15,326** |   | **$** | **84,515** |   | **$** | **43,433** |   |

| ***IV.*** | ***Analysis                of the Results of Consolidated                Operations*** |
|-----------|----------------------------------------------------------------------------------------|

**IV      (a) Net Revenues for the three months ended September 30, 2005 compared to      three      months ended September 30, 2004**

|                                               |   | **Consolidated                Net Revenues**                            |       |
|----------------------------------------------------|--------|-------------------------------------------------------------------------|------------|
|                                               |   | **For                the Three Months Ended September 30, (US $000's)** |       |
|                                               |   | **2005**                                                                |       | **2004** |   | ***Movement*** |   |
| Croatia                                            |   | $                                                                       | 4,183      |   | $ | 3,740 |   | *$* | *443* |   |
| Czech                Republic                      |   |                                                                    | 40,883     |   |   | - |   |   | *40,883* |   |
| Romania                                            |   |                                                                    | 21,138     |   |   | 15,297 |   |   | *5,841* |   |
| Slovenia                                           |   |                                                                    | 7,655      |   |   | 7,576 |   |   | *79* |   |
| Ukraine                                            |   |                                                                    | 13,208     |   |   | 9,930 |   |   | *3,278* |   |
| **Total                Consolidated Net Revenues** |   | **$**                                                                   | **87,067** |   | **$** | **36,543** |   | ***$*** | ***50,524*** |   |

| · | US$                40.9 million of net revenues from our Czech Republic operations following                the acquisition in May 2005 as described in "III. Analysis of Segment                Results". |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| · | A                12% increase in the net revenues of our Croatian operations, which                had                been acquired on July 16, 2004, as described in "III. Analysis of                Segment                Results"; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                38% increase in the net revenues of our Romanian operations as described                in "III. Analysis of Segment                Results"; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                1% increase in the net revenues of our Slovenian operations as described                in “III. Analysis of Segment Results";                and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                33% increase in the net revenues of our Ukrainian operations as described                in "III. Analysis of Segment                Results". |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

**IV      (b) Net Revenues for the nine months ended September 30, 2005 compared to nine      months ended September 30, 2004**

|                                               |   | **Consolidated                Net Revenues**                           |        |
|----------------------------------------------------|--------|------------------------------------------------------------------------|-------------|
|                                               |   | **For                the Nine Months Ended September 30, (US$ 000's)** |        |
|                                               |   | **2005**                                                               |        | **2004** |   | ***Movement*** |   |
| Croatia                                            |   | $                                                                      | 16,791      |   | $ | 3,740 |   | *$* | *13,051* |   |
| Czech                Republic                      |   |                                                                   | 88,647      |   |   | - |   |   | *88,647* |   |
| Romania                                            |   |                                                                   | 66,786      |   |   | 47,269 |   |   | *19,517* |   |
| Slovenia                                           |   |                                                                   | 31,509      |   |   | 30,984 |   |   | *525* |   |
| Ukraine                                            |   |                                                                   | 44,747      |   |   | 35,284 |   |   | *9,463* |   |
| **Total                Consolidated Net Revenues** |   | **$**                                                                  | **248,480** |   | **$** | **117,277** |   | ***$*** | ***131,203*** |   |

| · | US$                88.6 million of net revenues from our Czech Republic operations following                the acquisition in May 2005 as described in "III. Analysis of Segment                Results". |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                349% increase in the net revenues of our Croatian operations, which                had                been acquired on July 16, 2004, as described in "III. Analysis of                Segment                Results"; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                41% increase in the net revenues of our Romanian operations as described                in "III. Analysis of Segment                Results"; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                2% increase in the net revenues of our Slovenian operations as described                in “III. Analysis of Segment Results";                and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                27% increase in the net revenues of our Ukrainian operations as described                in "III. Analysis of Segment                Results". |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**IV      (c) Station Operating Costs and Expenses for the three months ended September      30, 2005 compared to three months ended September 30, 2004**

|                                                                       |   | **Consolidated                Station Operating Costs and Expenses**    |       |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|------------|
|                                                                       |   | **For                the Three Months Ended September 30, (US$ 000's)** |       |
|                                                                       |   | **2005**                                                                |       | **2004** |   | ***Movement*** |   |
| Croatia                                                                    |   | $                                                                       | 7,910      |   | $ | 4,140 |   | *$* | *3,770* |   |
| Czech                Republic                                              |   |                                                                    | 29,180     |   |   | - |   |   | *29,180* |   |
| Romania                                                                    |   |                                                                    | 12,269     |   |   | 10,117 |   |   | *2,152* |   |
| Slovenia                                                                   |   |                                                                    | 6,027      |   |   | 5,455 |   |   | *572* |   |
| Ukraine                                                                    |   |                                                                    | 9,323      |   |   | 8,689 |   |   | *634* |   |
| **Total                Consolidated Station Operating Costs and Expenses** |   | **$**                                                                   | **64,709** |   | **$** | **28,401** |   | ***$*** | ***36,308*** |   |

| · | US$                29.2 million of station operating costs from our Czech Republic                operations, which were acquired in May                2005. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                91% increase in the station operating costs and expenses of our Croatian                operations primarily due to the investment in programming necessary                to                increase ratings and audience share, increased transmission costs                resulting from greater transmission coverage as well as the comparable                2004 operating costs and expenses only being from the date of acquisition                on July 16, 2004; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                21% increase in the station operating costs and expenses of our Romanian                operations primarily due to the increased cost of acquired programming.                Salary costs, which are generally payable in local currency, also                increased by 16% due to the appreciation of local currency against                the US                dollar; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                10% increase in operating costs and expenses in our Slovenian operation                primarily due to the introduction of new employment law that has                resulted                in significantly higher social insurance costs for employers. Salary                costs                are therefore 13% higher for the three months ended September 30,                2005;                and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                7% increase in the station operating costs and expenses of our Ukrainian                operations. This is primarily due to a 53% increase in broadcasting                costs                associated with broadcasting a 24-hour schedule following the award                of a                nine-hour license in July 2004 and a 71% increase in staff costs                due to                increased employee-related taxation costs from restructuring independent                contractor arrangements. These increases were partially offset by                a 13%                saving on programming costs in the                period. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**IV      (d) Station Operating Costs and Expenses for the nine months ended September      30,      2005 compared to nine months ended September 30, 2004**

|                                                                       |   | **Consolidated                Station Operating Costs and Expenses**   |        |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------|-------------|
|                                                                       |   | **For                the Nine Months Ended September 30, (US$ 000's)** |        |
|                                                                       |   | **2005**                                                               |        | **2004** |   | ***Movement*** |   |
| Croatia                                                                    |   | $                                                                      | 22,716      |   | $ | 4,140 |   | *$* | *18,576* |   |
| Czech                Republic                                              |   |                                                                   | 45,734      |   |   | - |   |   | *45,734* |   |
| Romania                                                                    |   |                                                                   | 37,585      |   |   | 30,719 |   |   | *6,866* |   |
| Slovenia                                                                   |   |                                                                   | 19,514      |   |   | 17,048 |   |   | *2,466* |   |
| Ukraine                                                                    |   |                                                                   | 29,960      |   |   | 22,326 |   |   | *7,634* |   |
| **Total                Consolidated Station Operating Costs and Expenses** |   | **$**                                                                  | **155,509** |   | **$** | **74,233** |   | ***$*** | ***81,276*** |   |

| · | US$                45.7 million of station operating costs from our Czech Republic                operations, which were acquired in May                2005. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                449% increase in the station operating costs and expenses of our                Croatian                operations primarily due to the investment in programming necessary                to                increase ratings and audience share, increased transmission costs                resulting from greater transmission coverage as well as the comparable                2004 operating costs and expenses being from the date of acquisition                on                July 16, 2004 only; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                22% increase in the station operating costs and expenses of our Romanian                operations due to the increased cost of acquired programming as well                as                the extra programming and other costs of broadcasting Pro Cinema.                Staff                costs, which are generally payable in local currency, also increased                by                30% due to the appreciation of local currency against the US                dollar; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                14% increase in the station operating costs and expenses of our Slovenian                operations due to the introduction of a new employment law that has                resulted in significantly higher social insurance costs for employers.                Salary costs are therefore 24% higher for the nine months ended September                30, 2005; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                34% increase in the station operating costs and expenses of our Ukrainian                operations. This is primarily due to increased programming acquisition                and                broadcasting costs associated with broadcasting a 24-hour schedule                following the award of a nine-hour license in July 2004. Staff costs                also                increased by 77% primarily due to increased employee-related taxation                costs from restructuring independent contractor                arrangements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**IV      (e) Station Selling, General and Administrative Expenses for the three months      ended September 30, 2005 compared to three months ended September 30,      2004**

|                                                                                                      |   | **Consolidated                Station Selling, General and Administrative                Expenses** |       |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|------------|
|                                                                                                      |   | **For                the Three Months Ended September 30, (US$ 000's)**                             |       |
|                                                                                                      |   | **2005**                                                                                            |       | **2004** |   | ***Movement*** |   |
| Croatia                                                                                                   |   | $                                                                                                   | 1,975      |   | $ | 1,811 |   | *$* | *164* |   |
| Czech                Republic                                                                             |   |                                                                                                | 5,539      |   |   | - |   |   | *5,539* |   |
| Romania                                                                                                   |   |                                                                                                | 2,101      |   |   | 1,517 |   |   | *584* |   |
| Slovenia                                                                                                  |   |                                                                                                | 1,298      |   |   | 1,450 |   |   | *(152* | *)* |
| Ukraine                                                                                                   |   |                                                                                                | 1,853      |   |   | 1,898 |   |   | *(45* | *)* |
| **Total                Consolidated Station Selling, General and Administrative                Expenses** |   | **$**                                                                                               | **12,766** |   | **$** | **6,676** |   | ***$*** | ***6,090*** |   |

| · | US$                5.5 million of station selling, general and administrative expenses                from                our Czech Republic operations, which were acquired in May                2005. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                9% increase in the station selling, general and administrative expenses                of                our Croatian operations primarily as a result of the cost of the                market                re-launch of the station and increased on- and off-air promotion;                and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                38% increase in the station selling, general and administrative expenses                of our Romanian operations primarily as a result of an increase in                office                and facilities costs and a reversal of the bad debt provision in                the three                months ended September 30, 2004 which resulted in a write back in                that                period. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                10% decrease in the station selling, general and administrative expenses                of our Slovenian operations; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                2% decrease in the station selling, general and administrative expenses                of                our Ukrainian operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

**IV      (f) Station Selling, General and Administrative Expenses for the nine months      ended September 30, 2005 compared to nine months ended September 30,      2004**

|                                                                                                      |   | **Consolidated                Station Selling, General and Administrative                Expenses** |       |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|------------|
|                                                                                                      |   | **For                the Nine Months Ended September 30, (US$ 000's)**                              |       |
|                                                                                                      |   | **2005**                                                                                            |       | **2004** |   | ***Movement*** |   |
| Croatia                                                                                                   |   | $                                                                                                   | 5,754      |   | $ | 1,811 |   | *$* | *3,943* |   |
| Czech                Republic                                                                             |   |                                                                                                | 10,845     |   |   | - |   |   | *10,845* |   |
| Romania                                                                                                   |   |                                                                                                | 5,909      |   |   | 4,520 |   |   | *1,389* |   |
| Slovenia                                                                                                  |   |                                                                                                | 3,478      |   |   | 3,298 |   |   | *180* |   |
| Ukraine                                                                                                   |   |                                                                                                | 6,270      |   |   | 4,931 |   |   | *1,339* |   |
| **Total                Consolidated Station Selling, General and Administrative                Expenses** |   | **$**                                                                                               | **32,256** |   | **$** | **14,560** |   | ***$*** | ***17,696*** |   |

----

*Index*

| · | US$                10.8 million of station selling, general and administrative expenses                from                our Czech Republic operations, which were acquired in May                2005. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                218% increase in the station selling, general and administrative                expenses                of our Croatian operations primarily as a result of the cost of                re-launching the station and increased on- and off-air promotion; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                31% increase in the station selling, general and administrative expenses                of our Romanian operations primarily due to increased rent and office                costs of US$ 0.8 million and bad                debt provisions increasing by US$ 0.3 million.                The increase in bad debt provisions is partially due to a reversal                of bad                debt provisions in the first nine months of 2004 which resulted in                a                credit for that period; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                5% increase in the station selling, general and administrative expenses                of                our Slovenian operations mainly due to increases in office and facilities                costs; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                27% increase in the station selling, general and administrative expenses                of our Ukrainian operations due to an increase in rent and facilities                costs of US$ 1.0 million and a bad debt provision increase of US$                0.2                million. The rent and facilities cost increase is due to an extra                site                being operated since May 2005. Taxes have increased US$ 0.2 million                due to                unrecoverable VAT charges as a result of a change in tax                legislation. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**IV      (g) Consolidated results excluding net revenues, station operating costs and      expenses and station selling, general and administrative expenses for the three      months ended September 30, 2005 compared to the three months ended September      30,      2004**

|                                                                                                  |   | **For                the Three Months Ended September 30, (US$ 000's)** |    |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|
|                                                                                                  |   | **2005**                                                                |    | **2004** |   | ***Movement*** |   |
| Corporate                operating costs (including non-cash stock-based                compensation) |   |                                                                    | 4,800   |   |   | 8,202 |   |   | *(3,402* | *)* |
|                                                                                                  |   |                                                                    |    |   |   |   |   |   |   |   |
| Interest                income                                                                        |   |                                                                    | 1,716   |   |   | 960 |   |   | *756* |   |
| Interest                expense                                                                       |   |                                                                    | (11,574 | ) |   | (599 | ) |   | *(10,975* | *)* |
| Foreign                currency exchange gain, net                                                    |   |                                                                    | 856     |   |   | 1,133 |   |   | *(277* | *)* |
| Other                expense                                                                          |   |                                                                    | (840    | ) |   | (159 | ) |   | *(681* | *)* |
| Provision                for income taxes                                                             |   |                                                                    | (2,206  | ) |   | (1,120 | ) |   | *(1,086* | *)* |
| Minority                interest in (income)/loss of consolidated subsidiaries                        |   |                                                                    | 1,037   |   |   | (153 | ) |   | *1,190* |   |
| Equity                in income/(loss) of unconsolidated affiliates                                   |   |                                                                    | (63     | ) |   | 84 |   |   | *(147* | *)* |
| Post-tax                (loss)/income from discontinued operations                                    |   |                                                                    | (3,332  | ) |   | 943 |   |   | *(4,275* | *)* |

----

*Index*

**Corporate      operating costs**

|                                                                                                      |   | **For                the Three Months Ended September 30, (US $000's)** |      |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|-----------|
|                                                                                                      |   | **2005**                                                                |      | **2004** |   | ***Movement*** |   |
| Corporate                operating costs                                                                  |   | $                                                                       | 4,184     |   | $ | 5,492 |   | *$* | *(1,308* | *)* |
| Non-cash                stock-based compensation                                                          |   |                                                                    | 616       |   |   | 2,710 |   |   | *(2,094* | *)* |
| **Corporate                operating costs (including non-cash stock-based                compensation)** |   | **$**                                                                   | **4,800** |   | **$** | **8,202** |   | ***$*** | ***(3,402*** | ***)*** |

** **

**Interest      income**

**Interest      expense**

**Foreign      currency exchange: **

**Other      expense**

**Provision      for income taxes: **

**Minority      interest in loss of consolidated subsidiaries: **

**Equity      in income of unconsolidated affiliates: **

----

*Index*

|                                                                    |   | **For                the Three Months Ended September 30, (US $000's)** |    |
|-------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|
|                                                                    |   | **2005**                                                                |    | **2004** |   | ***Movement*** |   |
| Slovak                Republic operations                               |   | $                                                                       | 71      |   | $ | 153 |   | *$* | *(82* | *)* |
| Romanian                operations                                      |   |                                                                    | (134    | ) |   | (69 | ) |   | *(65* | *)* |
| **Equity                in income/(loss) of unconsolidated affiliates** |   | **$**                                                                   | **(63** | **)** | **$** | **84** |   | ***$*** | ***(147*** | ***)*** |

**Discontinued      operations: **

**IV      (h) Consolidated results excluding net revenues, station operating costs and      expenses and station selling, general and administrative expenses for the nine      months ended September 30, 2005 compared to the nine months ended September      30,      2004**

|                                                                                                  |   | **For                the Nine Months Ended September 30, (US$ 000's)** |    |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|---------|
|                                                                                                  |   | **2005**                                                               |    | **2004** |   | ***Movement*** |   |
| Corporate                operating costs (including non-cash stock-based                compensation) |   |                                                                   | 15,982  |   |   | 20,426 |   |   | *(4,444* | *)* |
| Impairment                charge                                                                      |   |                                                                   | 35,331  |   |   | - |   |   | *35,331* |   |
| Interest                income                                                                        |   |                                                                   | 3,354   |   |   | 3,200 |   |   | *154* |   |
| Interest                expense                                                                       |   |                                                                   | (18,305 | ) |   | (1,484 | ) |   | *(16,821* | *)* |
| Foreign                currency exchange gain/(loss), net                                             |   |                                                                   | 30,286  |   |   | (789 | ) |   | *31,075* |   |
| Other                expense                                                                          |   |                                                                   | (4,529  | ) |   | (940 | ) |   | *(3,589* | *)* |
| Provision                for income taxes                                                             |   |                                                                   | (8,112  | ) |   | (8,059 | ) |   | *(53* | *)* |
| Minority                interest in income of consolidated subsidiaries                               |   |                                                                   | (3,644  | ) |   | (610 | ) |   | *(3,034* | *)* |
| Equity                in income of unconsolidated affiliates                                          |   |                                                                   | 4,820   |   |   | 5,283 |   |   | *(463* | *)* |
| Post-tax                income from discontinued operations                                           |   |                                                                   | (5,376  | ) |   | 898 |   |   | *(6,274* | *)* |

**Corporate      operating costs**

|                                                                                                      |   | **For                the Nine Months Ended September 30, (US $000's)** |       |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|
|                                                                                                      |   | **2005**                                                               |       | **2004** |   | ***Movement*** |   |
| Corporate                operating costs                                                                  |   | $                                                                      | 13,684     |   | $ | 13,463 |   | *$* | *221* |   |
| Non-cash                stock-based compensation                                                          |   |                                                                   | 2,298      |   |   | 6,963 |   |   | *(4,665* | *)* |
| **Corporate                operating costs (including non-cash stock-based                compensation)** |   | **$**                                                                  | **15,982** |   | **$** | **20,426** |   | ***$*** | ***(4,444*** | ***)*** |

** **

----

*Index*

**Impairment      charge:**

**Interest      income**

**Interest      expense**

**Foreign      currency exchange: **

**Other      expense**

**Provision      for income taxes: **

**Minority      interest in income of consolidated subsidiaries:**

**Equity      in income of unconsolidated affiliates: **

|                                                             |   | **For                the Nine Months Ended September 30, (US $000's)** |      |
|------------------------------------------------------------------|--------|------------------------------------------------------------------------|-----------|
|                                                             |   | **2005**                                                               |      | **2004** |   | ***Movement*** |   |
| Slovak                Republic operations                        |   | $                                                                      | 5,030     |   | $ | 4,966 |   | *$* | *64* |   |
| Romanian                operations                               |   |                                                                   | (210      | ) |   | 317 |   |   | *(527* | *)* |
| **Equity                in income of unconsolidated affiliates** |   | **$**                                                                  | **4,820** |   | **$** | **5,283** |   | ***$*** | ***(463*** | ***)*** |

**Discontinued      operations: **

----

*Index*

| **IV                (i)** | **Consolidated                balance sheet as at September 30, 2005 compared to December 31,                2004** |
|---------------------------|---------------------------------------------------------------------------------------------------------------------|

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

*Summary*

| · | Receipt                of approximately US$ 682 million (net of fees) from the issuance                of Senior                Notes and a public offering of 5.4 million shares of our Class A                Common                Stock; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Approximately                US$ 733 million, including US$ 492 million repayment of notes to                PPF on                May 5, 2005, was applied toward the purchase of the interests in                TV Nova                (Czech Republic) held by PPF and Mr. Krsak (for further information,                see                Item 1, Note 5, "Acquisitions and Disposals"); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                reclassification of US$ 25 million to restricted cash, representing                money                held in escrow as the second and final payment to Mr. Krsak (for                further                information, see Item 1, Note 5, "Acquisitions and                Disposals"); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                addition of US$ 42 million held in our Czech Republic operations                which                were consolidated for the first time as at June 30,                2005; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                payment of US$ 20 million in connection with the 5% increase in our                holding of our Romanian operations (for further information, see                Item 1,                Note 5, "Acquisitions and Disposals"); |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                payment of US$ 5 million in connection with our acquisition of Galaxie                Sport (for further information, see Item I, Note 5, “Acquisitions and                Disposals”); and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                further payment of Euro 4.7 million (approximately US$ 6 million)                to                acquire the remaining 3.15% interest in Pro Plus (for further information,                see Item 1, Note 5, " Acquisitions and                Disposals”). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Contractual      Cash Obligations*

| 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 (1)                 |       | $                                                           | 717,545     |   | $ | 41,645 |   | $ | 72,206 |   | $ | 72,170 |   | $ | 531,524 |   |
| Capital                Lease Obligations          |       |                                                        | 6,143       |   |   | 893 |   |   | 960 |   |   | 938 |   |   | 3,352 |   |
| Operating                Leases                   |       |                                                        | 15,899      |   |   | 7,107 |   |   | 6,907 |   |   | 1,613 |   |   | 272 |   |
| Unconditional                Purchase Obligations |       |                                                        | 37,789      |   |   | 32,469 |   |   | 5,223 |   |   | 97 |   |   | - |   |
| Other                Long-Term Obligations (2)    |       |                                                        | 62,576      |   |   | 3,142 |   |   | 58,434 |   |   | 1,000 |   |   | - |   |
| Total                Contractual Obligations      |       | **$**                                                       | **839,952** |   | **$** | **85,256** |   | **$** | **143,730** |   | **$** | **75,818** |   | **$** | **535,148** |   |

----

*Index*

| (1) | Senior                notes in the aggregate principal amount of Euro 370 million (approximately                US$ 446.1 million), consisting of Euro 245 million (approximately                US$                295.4 million) 8.25% Senior Notes due 2012 and Euro 125 million                (approximately US$ 150.7 million) floating rate Senior Notes due                2012,                which have been issued at a rate equal to six-month Euro Inter-Bank                Offered Rate (“EURIBOR”) plus 5.5% (EURIBOR - 6 month as at September 30,                2005 was 2.1%) (for further information                see                Part 1, Note 11, “Senior Notes”). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mag                Media, CP 2000 and CET 21 have two credit facilities of up to an                aggregate                of CZK 1,100 million (approximately US$ 44.8 million) with Ceska                Sporitelna, a.s. (“CS”) and Factoring Ceska Sporitelna, a.s., a subsidiary                of CS. One facility is a CZK 850 million (approximately US$ 34.6                million)                facility for factoring trade receivables of Mag Media (US$ nil drawn                as at                September 30, 2005) and the second is a working capital facility                of up to                CZK 700 million (approximately US$ 28.5 million); provided that the                aggregate borrowing under both facilities does not exceed CZK 1,100                million (approximately US$ 44.8 million). As at September 30, 2005,                no                trade receivables were sold by Mag Media and CZK 250 million                (approximately US$ 10.2 million) has been drawn under the working                capital                facility and bears a variable interest rate of the three-month Prague                Inter-Bank Offered Rate (“PRIBOR”) rate plus 1.8% (PRIBOR - 3 month rate                as at September 30, 2005 was 1.8%). On October 27, 2005 these two                facilities were replaced by a credit facility of up to Czk 1,200                million                with CS (for further information see Item 1, Note 18, "Subsequent                Events"). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | A                revolving facility agreement (the “Revolver”) for up to Euro 37.5 million                (approximately US$ 45.2 million) in aggregate principal amount among                Pro                Plus, ING Bank N.V. (“ING”), Nova Ljubljanska Banka d.d., Ljubljana                (“NLB”) and Bank Austria Creditanstalt d.d., Ljubljana (“BACA”). 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 Media Enterprises                B.V.                Loans drawn under this facility will bear interest initially at EURIBOR                plus 3.6%. The applicable margin may be reduced (by increments of                0.5% to                a minimum of 2.1%) if Pro Plus exceeds certain benchmarks for the                ratio of                net debt to broadcasting cash flow. As of September 30, 2005, Pro                Plus has                not drawn down on this facility, but drew-down Euro 2.5 million                (approximately                US$ 3.0 million)                on                October 14, 2005 and Euro 17.5 million (approximately                US$ 21.1 million)                on                October 17, 2005. Pro Plus repaid its previous facility of up to                Euro 8.0                million (approximately US$ 9.6 million) with NLB and BACA on August                16,                2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | A                loan of SKK 187 million (approximately US$ 5.8 million) (December                31, 2004: SKK 187 million, approximately US$ 6.6 million) from                our non-consolidated affiliate, STS. This                loan bears a variable interest rate of the Bratislava Inter-Bank                Offered                Rate (“BRIBOR”) 3 month rate plus 2.2% (BRIBOR - 3 month as at September                30, 2005 was 2.9%). We expect this loan to be repaid before December                1,                2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | A                total of Euro 0.8 million (approximately                US$ 1.0 million) was drawn down on three loan agreements our Croatian                operations have with Hypo Alpe-Adria-Bank d.d. These                loans bear a variable interest rate of the EURIBOR 3 month rate plus                2.5%.                As at September 30, 2005 a rate of 4.65% applied to these                loans.                These loan facilities are secured by the real property and fixed                assets of                OK, which as at September 30, 2005 have a carrying amount of approximately                US$ 1.3 million. Principal payments of Euro 0.1 million (approximately                US$                0.1 million)                were made on these loans in 2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | An                amount of Euro 0.02 million (approximately US$ 0.02 million) was                drawn                down on a fourth loan agreement our Croatian operations have with                Hypo                Alpe-Adria-Bank d.d. This                loan bears a fixed interest rate of                7.25%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Euro                0.2 million (approximately US$ 0.2 million) was drawn down by our                Croatian                operations under a loan agreement with BKS Bank fur Karnten and Steiermark                AG.                This loan bears a variable interest rate of the EURIBOR 3 month rate                plus                3.0%. As at September 30, 2005 a rate of 5.15% applied to this                loan.                Principal payments of Euro 0.1                million (approximately US$ 0.1 million)                were made on these loans in 2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | On                July 24, 2002 STS obtained from Vseobecna uverova banka, a.s. ("VUB")                a                mid-term facility of SKK 100 million (approximately US$ 3.1 million).                This                facility matures in December 2005, and bears a variable interest                rate of                the BRIBOR 3 month rate plus 1.7% (BRIBOR - 3 month as at September                30,                2005 was 2.9%). The outstanding balance on this loan is SKK 75 million                (approximately US$ 2.3 million) and is secured by a pledge of certain                fixed and current assets. The nominal value of receivables under                pledge                according to the contract is US$ 2.3 million. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

*Sources      and Uses of Ca*
*sh*

|                           |   | **As                at September 30,****2005** |        | **As                at December 31, 2004** |   |
|--------------------------------|--------|------------------------------------------------|-------------|--------------------------------------------|--------|
| **Country**                    |   | **(US                $ 000’s)**          |        |
| Croatia                        |   | $                                              | 34,040      |                                       | $      | 11,087 |   |
| Czech                Republic  |   |                                           | 452,711     |                                       |   | - |   |
| Romania                        |   |                                           | 32,358      |                                       |   | 37,109 |   |
| Slovak                Republic |   |                                           | 70          |                                       |   | - |   |
| Slovenia                       |   |                                           | 40          |                                       |   | 1,590 |   |
| Ukraine                        |   |                                           | 11,163      |                                       |   | 13,459 |   |
| **Total**                      |   | **$**                                          | **530,382** |                                       | **$**  | **63,245** |   |

*Cash      Outlook*

----

*Index*

*Tax      Inspections*

*Regulatory      Environment*

*Off-Balance      Sheet Arrangements*

----

*Index*

| ***VI.*** | ***Critical                Accounting Policies and                Estimates*** |
|-----------|--------------------------------------------------------------------------------|

----

*Index*

| **Item                3.** | **Quantitative                and Qualitative Disclosures About Market                Risk** |
|----------------------------|----------------------------------------------------------------------------------------------|

**Foreign      Currency Exchange Risk Management**

**Interest      Rate Risk Management**

*Interest      Rate Table as at September 30, 2005 *

| **Expected                Maturity Dates** |   | **2005** |    | **2006** |   | **2007** |   | **2008** |      | **Thereafter** |   |
|--------------------------------------------|--------|----------|---------|----------|--------|----------|--------|----------|-----------|----------------|--------|
|                                       |   |     |    |     |   |     |   |     |      |           |   |
| *Total                Debt in Euros 000's* |   |     |    |     |   |     |   |     |      |           |   |
| Fixed                Rate                  |   |     | -       |     |   | -        |   |     | 12        |           |   | - |   |   | 245,000 |   |
| Average                Interest Rate       |   |     | -       |     |   | -        |   |     | 7.25      | %              |   | - |   |   | 8.25 | % |
| Variable                Rate               |   |     | -       |     |   | 223      |   |     | -         |           |   | - |   |   | 125,797 |   |
| Average                Interest Rate       |   |     | -       |     |   | 5.03     | %      |     | -         |           |   | - |   |   | 7.63 | % |
|                                       |   |     |    |     |   |     |   |     |      |           |   |   |   |   |   |   |
| *Total                Debt in Skk 000's*   |   |     |    |     |   |     |   |     |      |           |   |   |   |   |   |   |
| Fixed                Rate                  |   |     | -       |     |   | -        |   |     | -         |           |   | - |   |   | - |   |
| Average                Interest Rate       |   |     | -       |     |   | -        |   |     | -         |           |   | - |   |   | - |   |
| Variable                Rate               |   |     | 187,000 |     |   | -        |   |     | -         |           |   | - |   |   | - |   |
| Average                Interest Rate       |   |     | 5.09    | %        |   | -        |   |     | -         |           |   | - |   |   | - |   |
|                                       |   |     |    |     |   |     |   |     |      |           |   |   |   |   |   |   |
| *Total                Debt in Czk 000's*   |   |     |    |     |   |     |   |     |      |           |   |   |   |   |   |   |
| Fixed                Rate                  |   |     | -       |     |   | 26,000   |   |     | 1,000,000 |           |   | - |   |   | - |   |
| Average                Interest Rate       |   |     | -       |     |   | 8.50     | %      |     | 8.50      | %              |   | - |   |   | - |   |
| Variable                Rate               |   |     | 250,000 |     |   | -        |   |     | -         |           |   | - |   |   | - |   |
| Average                Interest Rate       |   |     | 3.60    | %        |   | -        |   |     | -         |           |   | - |   |   | - |   |

----

*Index*

*Variable      Interest Rate Sensitivity as at September 30, 2005*

|                                                                                                      |   |                                                                                             |        |                                                                             |   | **Yearly                interest charge if interest rates increase by****(US$000s):** |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|
| **Value                of Debt as at****September                30, 2005****(US$                000's)** |   | **Interest                Rate****as                at****September****30,                2005** |        | **Yearly                Interest****Charge****(US$                000’s)** |   | **1%**                                                                                |   | **2%** |   | **3%** |   | **4%** |   | **5%** |   |
| 151,943(Euro                126.0 million)                                                                |   |                                                                                             | 4.65%-7.65% |                                                                             | $      | 11,583                                                                                |   | $ | 13,103 |   | $ | 14,622 |   | $ | 16,141 |   | $ | 17,661 |   | $ | 19,180 |   |
| 5,804(Skk                187 million)                                                                     |   |                                                                                             | 5.09%       |                                                                             |   | 295                                                                                   |   |   | 353 |   |   | 412 |   |   | 470 |   |   | 528 |   |   | 586 |   |
| 10,189(Czk                250 million)                                                                    |   |                                                                                             | 3.60%       |                                                                             |   | 367                                                                                   |   |   | 469 |   |   | 571 |   |   | 672 |   |   | 774 |   |   | 876 |   |
| **Total**                                                                                                 |   |                                                                                             |        |                                                                             | **$**  | **12,245**                                                                            |   | **$** | **13,925** |   | **$** | **15,605** |   | **$** | **17,283** |   | **$** | **18,963** |   | **$** | **20,642** |   |

| **Item                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

----

*Index*

**PART      II**

**OTHER      INFORMATION**

| **Item                1.** | **Legal                Proceedings** |
|----------------------------|--------------------------------------|

*General*

*Croatia*

*Czech      Republic*

*Claims      Relating to the Vilja Shareholding in CET 21*

----

*Index*

*Disposition      of the CET 21 Interest Held by CET 21*

*Claims      brought by Alan, Huncik, Venclik and Gal*

*Claims      Relating to the Interests of CS and CEDC in CET 21*

----

*Index*

*Other      Claims*

*Romania*

*Slovenia*

----

*Index*

*Slovak        Republic*

*Ukraine*

----

*Index*

| **Item                5.** | **Other                Information** |
|----------------------------|--------------------------------------|

| **Item                6.** | **Exhibits** |
|----------------------------|--------------|

|   | 31.01 | Sarbanes-Oxley                  Certification s.302  CEO, dated November 3,                  2005 |
|--------|-------|--------------------------------------------------------------------------------------------------------|

|   | 31.02 | Sarbanes-Oxley                  Certification s.302  CFO, dated November 3,                  2005 |
|--------|-------|--------------------------------------------------------------------------------------------------------|

|   | 32.01 | Sarbanes-Oxley                  Certification - CEO and CFO, dated November 3, 2005 (furnished                  only) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------|

----

*Index*

**SIGNATURES**

| Date:                November 3, 2005 | /s/                Michael Garin                                                   |
|---------------------------------------|------------------------------------------------------------------------------------|
|                                  | Michael                Garin                                                       |
|                                  | Chief                Executive Officer                                             |
|                                  | (Duly                Authorized Officer)                                           |
|                                  |                                                                               |
|                                  |                                                                               |
| Date:                November 3, 2005 | /s/                Wallace Macmillan                                               |
|                                  | Wallace                Macmillan                                                   |
|                                  | Vice                President - Finance                                            |
|                                  | (Principal                Financial Officer and Accounting                Officer) |

**EXHIBIT      INDEX **

|   | 31.01 | s.302                Sarbanes-Oxley Certification - CEO, dated November 3,                2005 |
|--------|-------|------------------------------------------------------------------------------------------------|

|   | 31.02 | s.302                Sarbanes-Oxley Certification - CFO, dated November 3,                2005 |
|--------|-------|------------------------------------------------------------------------------------------------|

|   | 32.01 | s.906                Sarbanes-Oxley Certification - CEO and CFO, dated November 3, 2005                (furnished only) |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------|

----