----

----

**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 March 31, 2006**

** ̈**
**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                  11 Bermuda**                 |   |
|   | (Address                  of principal executive offices)                        |   | (Zip                  Code)                        |   |

| Large                    accelerated filer x | Accelerated                    filer  ̈ | Non-accelerated                    filer  ̈ |
|----------------------------------------------|---------------------------------------------|-------------------------------------------------|

|   | Class                                                  |   | Outstanding                  as of April 25, 2006 |   |
|--------|--------------------------------------------------------|--------|---------------------------------------------------|--------|
|   | Class                  A Common Stock, par value $0.08 |   | 33,625,994                                        |   |
|   | Class                  B Common Stock, par value $0.08 |   | 6,966,533                                         |   |

----

----

----

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**FORM      10-Q**

**For      the quarterly period ended March 31, 2006**

**INDEX**

|                                             |                                                                                                                            |                                                                                                                             | Page |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|------|
| **Part                I. Financial information** |                                                                                                                            |
|                                             | **Item                1. Financial Statements**                                                                                 |                                                                                                                             |
|                                             |                                                                                                                            | Condensed                consolidated Balance Sheets as at March 31, 2006 and                December 31, 2005                   | 2    |
|                                             |                                                                                                                            | Condensed                consolidated Statements of Operations for the Three                Months Ended March 31, 2006 and 2005 | 4    |
|                                             |                                                                                                                            | Condensed                consolidated Statement of Shareholders' Equity for                the Three Months Ended March 31, 2006 | 6    |
|                                             |                                                                                                                            | Condensed                consolidated Statements of Cash Flows for the Three                Months Ended March 31, 2006 and 2005 | 7    |
|                                             |                                                                                                                            | Notes                to the Condensed consolidated Financial                Statements                                           | 8    |
|                                             | **Item                2. Management's Discussion and Analysis of Financial                Condition and Results of Operations** | 35                                                                                                                               |
|                                             | **Item                3. Quantitative and Qualitative Disclosures About Market                Risk**                            | 57                                                                                                                               |
|                                             | **Item                4. Controls and Procedures**                                                                              | 58                                                                                                                               |
| **Part                II. Other Information**    |                                                                                                                            |
|                                             | **Item                1. Legal Proceedings**                                                                                    | 58                                                                                                                               |
|                                             | **Item                1A. Risk Factors**                                                                                        | 60                                                                                                                               |
|                                             | **Item                6. Exhibits**                                                                                             | 61                                                                                                                               |
| **Signatures**                                   | 61                                                                                                                              |
| **Exhibit                Index**                 | 62                                                                                                                              |

----

*Index*

**Part      I. Financial Information**

**Item      1. Financial Statements**

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(US$      000’s)**

**(Unaudited)**

|                                                  |   | **March                31, ****2006** |          | **December                31, ****2005** |   |
|-------------------------------------------------------|--------|--------------------------------------------|---------------|-----------------------------------------------|--------|
| **ASSETS**                                            |   |                                       |          |                                          |   |
| **Current                assets**                     |   |                                       |          |                                          |   |
| Cash                and cash equivalents              |   | $                                          | 232,941       |                                          | $      | 71,658 |   |
| Restricted                cash (Note 6)               |   |                                       | 39,611        |                                          |   | 34,172 |   |
| Accounts                receivable (Note 7)           |   |                                       | 101,488       |                                          |   | 97,396 |   |
| Income                taxes receivable                |   |                                       | 11,697        |                                          |   | 9,930 |   |
| Program                rights                         |   |                                       | 47,599        |                                          |   | 34,914 |   |
| Other                current assets (Note 8)          |   |                                       | 34,408        |                                          |   | 38,856 |   |
| **Total                current assets**               |   |                                       | **467,744**   |                                          |   | **286,926** |   |
| **Non-current                assets**                 |   |                                       |          |                                          |   |   |   |
| Investments                                           |   |                                       | 63            |                                          |   | 23,936 |   |
| Acquisition                costs (Note 3)             |   |                                       | -             |                                          |   | 5,118 |   |
| Property,                plant and equipment (Note 9) |   |                                       | 79,480        |                                          |   | 58,897 |   |
| Program                rights                         |   |                                       | 48,142        |                                          |   | 33,081 |   |
| Goodwill                (Note 4)                      |   |                                       | 814,502       |                                          |   | 746,583 |   |
| Broadcast                licenses (Note 4)            |   |                                       | 182,234       |                                          |   | 171,591 |   |
| Other                intangible assets (Note 4)       |   |                                       | 67,176        |                                          |   | 47,658 |   |
| Other                non-current assets (Note 8)      |   |                                       | 16,763        |                                          |   | 15,060 |   |
| **Total                non-current assets**           |   |                                       | **1,208,360** |                                          |   | **1,101,924** |   |
| **Total                assets**                       |   | **$**                                      | **1,676,104** |                                          | **$**  | **1,388,850** |   |

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (continued)**

**(US$      000’s)**

**(Unaudited)**

|                                                                                                                   |   | **March                31,****2006** |          | **December                31,****2005** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------------|-----------------------------------------|--------|
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                          |   |                                 |          |                                    |   |
| **Current                liabilities**                                                                                 |   |                                 |          |                                    |   |
| Accounts                payable and accrued liabilities (Note 10)                                                      |   | $                                    | 105,422       |                                    | $      | 84,849 |   |
| Duties                and other taxes payable                                                                          |   |                                 | 33,906        |                                    |   | 27,654 |   |
| Income                taxes payable                                                                                    |   |                                 | 24,925        |                                    |   | 21,894 |   |
| Credit                facilities and obligations under capital leases (Note 11)                                        |   |                                 | 73,737        |                                    |   | 43,566 |   |
| Deferred                consideration - Croatia                                                                        |   |                                 | 3,685         |                                    |   | 3,591 |   |
| Deferred                consideration - Czech Republic                                                                 |   |                                 | 25,399        |                                    |   | 24,402 |   |
| Deferred                consideration - Slovak Republic                                                                |   |                                 | 5,108         |                                    |   | - |   |
| Deferred                consideration - Ukraine                                                                        |   |                                 | 500           |                                    |   | - |   |
| Deferred                tax                                                                                            |   |                                 | 708           |                                    |   | 1,005 |   |
| **Total                current liabilities**                                                                           |   |                                 | **273,390**   |                                    |   | **206,961** |   |
| **Non-current                liabilities**                                                                             |   |                                 |          |                                    |   |   |   |
| Credit                facilities and obligations under capital leases (Note 11)                                        |   |                                 | 4,902         |                                    |   | 4,740 |   |
| Senior                Notes (Note 5)                                                                                   |   |                                 | 447,779       |                                    |   | 436,424 |   |
| Income                taxes payable                                                                                    |   |                                 | 3,444         |                                    |   | 681 |   |
| Deferred                tax                                                                                            |   |                                 | 52,676        |                                    |   | 42,149 |   |
| Other                non-current liabilities                                                                           |   |                                 | 6,262         |                                    |   | 4,105 |   |
| **Total                non-current liabilities**                                                                       |   |                                 | **515,063**   |                                    |   | **488,099** |   |
| Commitments                and contingencies (Note 17)                                                                 |   |                                 |          |                                    |   |   |   |
| **Minority                interests in consolidated subsidiaries**                                                     |   |                                 | **22,700**    |                                    |   | **13,237** |   |
| **SHAREHOLDERS'                EQUITY:**                                                                               |   |                                 |          |                                    |   |   |   |
| Nil                shares of Preferred Stock of $0.08 each (December 31, 2005 -                nil)                    |   |                                 | -             |                                    |   | - |   |
| 33,625,994                shares of Class A Common Stock of $0.08 each (December 31, 2005 -                31,032,994) |   |                                 | 2,689         |                                    |   | 2,482 |   |
| 6,966,533                shares of Class B Common Stock of $0.08 each (December 31, 2005 -                6,966,533)   |   |                                 | 558           |                                    |   | 558 |   |
| Additional                paid-in capital                                                                              |   |                                 | 916,876       |                                    |   | 746,880 |   |
| Accumulated                deficit                                                                                     |   |                                 | (63,237       | )                                       |   | (44,973 | ) |
| Accumulated                other comprehensive income / (loss)                                                         |   |                                 | 8,065         |                                    |   | (24,394 | ) |
| **Total                shareholders’ equity**                                                                    |   |                                 | **864,951**   |                                    |   | **680,553** |   |
| **Total                liabilities and shareholders’ equity**                                                    |   | **$**                                | **1,676,104** |                                    | **$**  | **1,388,850** |   |

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE      INCOME**

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

**(Unaudited)**

|                                                                                                                                                                                                 |   | **For                the Three Months Ended March 31,** |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------|
|                                                                                                                                                                                                 |   | **2006**                                                |        | **2005** |   |
|                                                                                                                                                                                                 |   |                                                    |        |   |   |
| **Net                revenues**                                                                                                                                                                      |   | **$**                                                   | **119,754** |   | **$** | **48,304** |   |
| **Operating                expenses:**                                                                                                                                                               |   |                                                    |        |   |   |   |   |
| Operating                costs                                                                                                                                                                       |   |                                                    | 22,972      |   |   | 11,285 |   |
| Cost                of programming                                                                                                                                                                   |   |                                                    | 48,418      |   |   | 22,322 |   |
| Depreciation                of station property, plant and equipment                                                                                                                                 |   |                                                    | 5,702       |   |   | 2,213 |   |
| Amortization                of broadcast licenses and other intangibles (Note 4)                                                                                                                     |   |                                                    | 4,332       |   |   | 77 |   |
| **Cost                of revenues**                                                                                                                                                                  |   |                                                    | **81,424**  |   |   | **35,897** |   |
| Station                selling, general and administrative expenses                                                                                                                                  |   |                                                    | 14,166      |   |   | 6,928 |   |
| Corporate                operating costs                                                                                                                                                             |   |                                                    | 7,981       |   |   | 7,731 |   |
| **Operating                income / (loss)**                                                                                                                                                         |   |                                                    | **16,183**  |   |   | **(2,252** | **)** |
| Interest                income                                                                                                                                                                       |   |                                                    | 1,453       |   |   | 1,079 |   |
| Interest                expense                                                                                                                                                                      |   |                                                    | (10,518     | ) |   | (307 | ) |
| Foreign                currency exchange loss, net                                                                                                                                                   |   |                                                    | (10,862     | ) |   | (729 | ) |
| Other                expense                                                                                                                                                                         |   |                                                    | (548        | ) |   | (4,001 | ) |
| **Loss                before provision for income taxes, minority interest, equity in income                of                unconsolidated affiliates and discontinued                operations** |   |                                                    | **(4,292**  | **)** |   | **(6,210** | **)** |
| Provision                for income taxes                                                                                                                                                            |   |                                                    | (3,994      | ) |   | (2,341 | ) |
| **Loss                before minority interest, equity in income of unconsolidated affiliates                and discontinued operations**                                                           |   |                                                    | **(8,286**  | **)** |   | **(8,551** | **)** |
| Minority                interest in income of consolidated subsidiaries                                                                                                                              |   |                                                    | (5,441      | ) |   | (577 | ) |
| Equity                in (loss) / income of unconsolidated affiliates                                                                                                                                |   |                                                    | (730        | ) |   | 834 |   |
| **Net                loss from continuing operations**                                                                                                                                               |   |                                                    | **(14,457** | **)** |   | **(8,294** | **)** |
| **Discontinued                operations (Note 16):**                                                                                                                                                |   |                                                    |        |   |   |   |   |
| Pre-tax                income from discontinued operations (Czech Republic)                                                                                                                          |   |                                                    | -           |   |   | 118 |   |
| Tax                on disposal of discontinued operations (Czech Republic)                                                                                                                           |   |                                                    | (3,807      | ) |   | 227 |   |
| **Net                (loss) / income from discontinued operations**                                                                                                                                  |   |                                                    | **(3,807**  | **)** |   | **345** |   |
| **Net                loss**                                                                                                                                                                          |   | **$**                                                   | **(18,264** | **)** | **$** | **(7,949** | **)** |
|                                                                                                                                                                                                 |   |                                                    |        |   |   |   |   |
| Currency                translation adjustment, net                                                                                                                                                  |   |                                                    | 32,459      |   |   | (2,251 | ) |
| **Total                comprehensive income / (loss)**                                                                                                                                               |   | **$**                                                   | **14,195**  |   | **$** | **(10,200** | **)** |

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME      (continued)**

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

**(Unaudited)**

|                                                                                                              |   | **For                the Three Months Ended March 31,** |   |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                                                              |   | **2006**                                                |   | **2005** |   |
| **PER                SHARE DATA (Note 14):**                                                                      |   |                                                    |   |   |   |
| *Net                income / (loss) per share:*                                                                   |   |                                                    |   |   |   |
| Continuing                operations - Basic                                                                      |   | $                                                       | (0.38  | ) | $ | (0.29 | ) |
| Continuing                operations - Diluted                                                                    |   |                                                    | (0.38  | ) |   | (0.29 | ) |
| Discontinued                operations - Basic                                                                    |   |                                                    | (0.10  | ) |   | 0.01 |   |
| Discontinued                operations - Diluted                                                                  |   |                                                    | (0.10  | ) |   | 0.01 |   |
| Net                loss - Basic                                                                                   |   |                                                    | (0.48  | ) |   | (0.28 | ) |
| Net                loss - Diluted                                                                                 |   | $                                                       | (0.48  | ) | $ | (0.28 | ) |
|                                                                                                              |   |                                                    |   |   |   |   |   |
| *Weighted                average common shares used in computing per share amounts                (000’s):* |   |                                                    |   |   |   |   |   |
| Basic                                                                                                             |   |                                                    | 38,100 |   |   | 28,385 |   |
| Diluted                                                                                                           |   |                                                    | 38,100 |   |   | 28,385 |   |

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONDENSED      CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

**(US$      000’s)**

**(Unaudited)**

|                                           |   | **Class                A Common Stock** |           | **Class                B Common Stock** |   |                                   |   |                         |          |                                                             |   |                                   |   |
|------------------------------------------------|--------|-----------------------------------------|----------------|-----------------------------------------|--------|----------------------------------------|--------|------------------------------|---------------|------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                           |   | **Number                of****shares**  |           | **Par                value**            |   | **Number                of****shares** |   | **Par                value** |          | **Additional                Paid-****In                Capital** |   | **Accumulated                Deficit** |   | **Accumulated****Other****Comprehensive****Income                  / (Loss)** |   | **Total****Shareholders'                Equity** |   |
| **BALANCE,                December 31, 2005**  |   |                                    | **31,032,994** |                                    | **$**  | **2,482**                              |   |                         | **6,966,533** |                                                             | **$**  | **558**                                |   | **$** | **746,880** |   | **$** | **(44,973** | **) ** | **$** | **(24,394** | **) ** | **$** | **680,553** |   |
| Stock-based                compensation        |   |                                    | -              |                                    |   | -                                      |   |                         | -             |                                                             |   | -                                      |   |   | 688 |   |   | - |   |   | - |   |   | 688 |   |
| Stock                options exercised         |   |                                    | 63,000         |                                    |   | 5                                      |   |                         | -             |                                                             |   | -                                      |   |   | 911 |   |   | - |   |   | - |   |   | 916 |   |
| Shares                issued, net of fees      |   |                                    | 2,530,000      |                                    |   | 202                                    |   |                         | -             |                                                             |   | -                                      |   |   | 168,397 |   |   | - |   |   | - |   |   | 168,599 |   |
| Net                loss                        |   |                                    | -              |                                    |   | -                                      |   |                         | -             |                                                             |   | -                                      |   |   | - |   |   | (18,264 | ) |   | - |   |   | (18,264 | ) |
| Currency                translation adjustment |   |                                    | -              |                                    |   | -                                      |   |                         | -             |                                                             |   | -                                      |   |   | - |   |   | - |   |   | 32,459 |   |   | 32,459 |   |
| **BALANCE,                March 31, 2006**     |   |                                    | **33,625,994** |                                    | **$**  | **2,689**                              |   |                         | **6,966,533** |                                                             | **$**  | **558**                                |   | **$** | **916,876** |   | **$** | **(63,237** | **) ** | **$** | **8,065** |   | **$** | **864,951** |   |

|                                             |   | **Class                  A Common Stock** |           | **Class                  B Common Stock** |   |                                     |   |                           |          |                                                                 |   |                       |   |
|--------------------------------------------------|--------|-------------------------------------------|----------------|-------------------------------------------|--------|------------------------------------------|--------|--------------------------------|---------------|----------------------------------------------------------------------|--------|----------------------------|--------|
|                                             |   | **Number                  of****shares**  |           | **Par                  value**            |   | **Number                  of****shares** |   | **Par                  value** |          | **Additional                  Paid-****In                  Capital** |   | **Accumulated****Deficit** |   | **Accumulated                  Other****Comprehensive****Income                  / (Loss)** |   | **Total****Shareholders'****Equity** |   |
| **BALANCE,                  December 31, 2004**  |   |                                      | **21,049,400** |                                      | **$**  | **1,684**                                |   |                           | **7,334,768** |                                                                 | **$**  | **587**                    |   | **$** | **387,305** |   | **$** | **(87,468** | **) ** | **$** | **8,960** |   | **$** | **311,068** |   |
| Stock-based                  compensation        |   |                                      | -              |                                      |   | -                                        |   |                           | -             |                                                                 |   | -                          |   |   | 3,101 |   |   | - |   |   | - |   |   | 3,101 |   |
| Stock                  options exercised         |   |                                      | 2,000          |                                      |   | -                                        |   |                           | -             |                                                                 |   | -                          |   |   | 44 |   |   | - |   |   | - |   |   | 44 |   |
| Net                  loss                        |   |                                      | -              |                                      |   | -                                        |   |                           | -             |                                                                 |   | -                          |   |   | - |   |   | (7,949 | ) |   | - |   |   | (7,949 | ) |
| Currency                  translation adjustment |   |                                      | -              |                                      |   | -                                        |   |                           | -             |                                                                 |   | -                          |   |   | - |   |   | - |   |   | (2,251 | ) |   | (2,251 | ) |
| **BALANCE,                  March 31, 2005**     |   |                                      | **21,051,400** |                                      | **$**  | **1,684**                                |   |                           | **7,334,768** |                                                                 | **$**  | **587**                    |   | **$** | **390,450** |   | **$** | **(95,417** | **) ** | **$** | **6,709** |   | **$** | **304,013** |   |

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(US$      000’s)**

**(Unaudited)**

|                                                                                                                 |   | **For                  the Three Months Ended March 31****,** |        |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-------------|
|                                                                                                                 |   | **2006**                                                      |        | **2005** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                           |   |                                                          |        |   |   |
| **Net                  loss**                                                                                        |   | **$**                                                         | **(18,264** | **)** | **$** | **(7,949** | **)** |
| Adjustments                  to reconcile net loss to net cash generated from operating                  activities: |   |                                                          |        |   |   |   |   |
| (Income)                  / loss from discontinued operations (Note 16)                                              |   |                                                          | 3,807       |   |   | (345 | ) |
| Equity                  in loss / (income) of unconsolidated affiliates, net of dividends                  received  |   |                                                          | 730         |   |   | 3,326 |   |
| Depreciation                  and amortization                                                                       |   |                                                          | 36,764      |   |   | 15,911 |   |
| Loss                  on disposal of fixed asset                                                                     |   |                                                          | 821         |   |   | - |   |
| Interest                  receivable, net                                                                            |   |                                                          | (47         | ) |   | (39 | ) |
| Stock-based                  compensation (Note 13)                                                                  |   |                                                          | 688         |   |   | 3,101 |   |
| Minority                  interest in income of consolidated subsidiaries                                            |   |                                                          | 5,441       |   |   | 577 |   |
| Foreign                  currency exchange loss, net                                                                 |   |                                                          | 10,861      |   |   | 729 |   |
| Net                  change in (net of effects of acquisitions and disposals of                  businesses):        |   |                                                          |        |   |   |   |   |
| Accounts                  receivable                                                                                 |   |                                                          | 7,567       |   |   | (464 | ) |
| Program                  rights                                                                                      |   |                                                          | (40,104     | ) |   | (17,871 | ) |
| Other                  assets                                                                                        |   |                                                          | 2,901       |   |   | (25 | ) |
| Settlement                  liability                                                                                |   |                                                          | (10,007     | ) |   | - |   |
| Other                  accounts payable and accrued liabilities                                                      |   |                                                          | 12,373      |   |   | 2,739 |   |
| Income                  taxes payable                                                                                |   |                                                          | 2,300       |   |   | 854 |   |
| Deferred                  taxes                                                                                      |   |                                                          | 3,574       |   |   | (22 | )  |
| VAT                  and other taxes payable                                                                         |   |                                                          | 12,288      |   |   | 842 |   |
| **Net                  cash generated from continuing operating                  activities**                        |   |                                                          | **31,693**  |   |   | **1,364** |   |
|                                                                                                                 |   |                                                          |        |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                           |   |                                                          |        |   |   |   |   |
| Net                  change in restricted cash                                                                       |   |                                                          | (4,068      | ) |   | 6,366 |   |
| Purchase                  of property, plant and equipment                                                           |   |                                                          | (10,397     | ) |   | (3,719 | ) |
| Proceeds                  from disposal of property, plant and equipment                                             |   |                                                          | -           |   |   | 43 |   |
| Investments                  in subsidiaries and unconsolidated affiliates                                           |   |                                                          | (53,153     | ) |   | (7,149 | ) |
| Acquisition                  costs                                                                                   |   |                                                          | -           |   |   | (2,348 | ) |
| Repayment                  of loans and advances to related parties                                                  |   |                                                          | 100         |   |   | - |   |
| **Net                  cash used in continuing investing activities**                                                |   |                                                          | **(67,518** | **)** |   | **(6,807** | **)** |
|                                                                                                                 |   |                                                          |        |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                           |   |                                                          |        |   |   |   |   |
| Proceeds                  from credit facilities                                                                     |   |                                                          | 28,491      |   |   | - |   |
| Payment                  of credit facilities and capital leases                                                     |   |                                                          | (508        | ) |   | (1,786 | ) |
| Proceeds                  from loans from unconsolidated affiliates                                                  |   |                                                          | -           |   |   | 44 |   |
| Issuance                  of shares of Class A Common Stock                                                          |   |                                                          | 169,515     |   |   | - |   |
| Dividends                  paid to minority shareholders                                                             |   |                                                          | (517        | ) |   | - |   |
| **Net                  cash received from / (used in) continuing financing                  activities**             |   |                                                          | **196,981** |   |   | **(1,742** | **)** |
|                                                                                                                 |   |                                                          |        |   |   |   |   |
| NET                  CASH USED IN DISCONTINUED OPERATIONS - OPERATING                  ACTIVITIES                    |   |                                                          | (1,690      | ) |   | (293 | ) |
| **Impact                  of exchange rate fluctuations on cash**                                                    |   |                                                          | **1,817**   |   |   | **(952** | **)** |
|                                                                                                                 |   |                                                          |        |   |   |   |   |
| Net                  increase / (decrease) in cash and cash equivalents                                              |   |                                                          | 161,283     |   |   | (8,430 | ) |
| **CASH                  AND CASH EQUIVALENTS, beginning of period**                                                  |   |                                                          | **71,658**  |   |   | **152,568** |   |
| **CASH                  AND CASH EQUIVALENTS, end of period**                                                        |   | **$**                                                         | **232,941** |   | **$** | **144,138** |   |

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**1.      ORGANIZATION AND BUSINESS**

| **Company                Name**                                                        | **Voting****Interest** | **Jurisdiction                of****Organization** | **Subsidiary                / Equity-Accounted****Affiliate                (1)** |
|---------------------------------------------------------------------------------------------|------------------------|----------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                                        |                   |                                               |                                                                             |
| CME                Media Investments s.r.o.                                                 | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| Vilja                a.s. (“Vilja”)                                             | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| CET                21 s.r.o. (“CET 21”)                                         | 96.5%                  | Czech                Republic                      | Subsidiary                                                                       |
| CME                Media Services s.r.o. (“CME Media Services”)                 | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| ERIKA                a.s.                                                                   | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| Media                Capitol, a.s.                                                          | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| NOVA                Consulting, a.s.                                                        | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| HARTIC,                a.s.                                                                 | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| Galaxie                Sport s.r.o. (“Galaxie Sport”)                           | 100.0%                 | Czech                Republic                      | Subsidiary                                                                       |
| Plejada                a.s.                                                                 | 96.5%                  | Czech                Republic                      | Subsidiary                (in liquidation)                                       |
|                                                                                        |                   |                                               |                                                                             |
| Media                Pro International S.A. (“MPI”)                             | 90.0%                  | Romania                                            | Subsidiary                                                                       |
| Media                Vision S.R.L. (“Media Vision”)                             | 75.0%                  | Romania                                            | Subsidiary                                                                       |
| MPI                Romania B.V.                                                             | 90.0%                  | Netherlands                                        | Subsidiary                                                                       |
| Pro                TV S.A. (“Pro TV”)                                           | 90.0%                  | Romania                                            | Subsidiary                                                                       |
| Radio                Pro S.R.L                                                              | 20.0%                  | Romania                                            | Equity                Accounted Affiliate                                        |
|                                                                                        |                   |                                               |                                                                             |
| International                Media Services Ltd. (“IMS”)                        | 60.0%                  | Bermuda                                            | Subsidiary                                                                       |
| Innova                Film GmbH (“Innova”)                                      | 60.0%                  | Germany                                            | Subsidiary                                                                       |
| Enterprise                “Inter-Media” (“Inter-Media”)             | 60.0%                  | Ukraine                                            | Subsidiary                                                                       |
| TV                Media Planet Ltd.                                                         | 60.0%                  | Cyprus                                             | Subsidiary                                                                       |
| Broadcasting                Company “Studio 1+1” LLC (“Studio 1+1”) | 18.0%                  | Ukraine                                            | Consolidated                Variable Interest Entity                             |
| Ukraine                Media Services LLC                                                   | 99.0%                  | Ukraine                                            | Subsidiary                                                                       |
| Ukrpromtorg                2003 LLC                                                         | 65.5%                  | Ukraine                                            | Subsidiary                                                                       |
| Gravis                LLC                                                                   | 60.4%                  | Ukraine                                            | Subsidiary                                                                       |
| Delta                ZAO                                                                    | 60.4%                  | Ukraine                                            | Subsidiary                                                                       |
| Nart                LLC                                                                     | 65.5%                  | Ukraine                                            | Subsidiary                                                                       |
| TV                Stimul LLC                                                                | 49.1%                  | Ukraine                                            | Equity                Accounted Affiliate                                        |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

| **Company                Name**                                     | **Voting****Interest** | **Jurisdiction                of****Organization** | **Subsidiary                / Equity-Accounted****Affiliate                (1)** |
|--------------------------------------------------------------------------|------------------------|----------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                     |                   |                                               |                                                                             |
|                                                                     |                   |                                               |                                                                             |
| A.R.J.                a.s. (“ARJ”)                           | 100.0%                 | Slovak                Republic                     | Subsidiary                                                                       |
| Slovenska                Televizna Spolocnost s.r.o. (“STS”) | 89.8%                  | Slovak                Republic                     | Subsidiary                                                                       |
| Markiza-Slovakia                s.r.o. (“Markiza”)           | 80.0%                  | Slovak                Republic                     | Subsidiary                                                                       |
|                                                                     |                   |                                               |                                                                             |
| Gamatex                s.r.o.                                            | 89.8%                  | Slovak                Republic                     | Subsidiary                                                                       |
| ADAM                a.s.                                                 | 89.8%                  | Slovak                Republic                     | Subsidiary                                                                       |
|                                                                     |                   |                                               |                                                                             |
| MM                TV 1 d.o.o.                                            | 100.0%                 | Slovenia                                           | Subsidiary                                                                       |
| Produkcija                Plus d.o.o. (“Pro Plus”)           | 100.0%                 | Slovenia                                           | Subsidiary                                                                       |
| POP                TV d.o.o. (“Pop TV”)                      | 100.0%                 | Slovenia                                           | Subsidiary                                                                       |
| Kanal                A d.o.o. (“Kanal A”)                    | 100.0%                 | Slovenia                                           | Subsidiary                                                                       |
| Super                Plus Holding d.d.                                   | 100.0%                 | Slovenia                                           | Subsidiary                (in liquidation)                                       |
| MTC                Holding d.o.o.                                        | 24.0%                  | Slovenia                                           | Equity-Accounted                Affiliate (in liquidation)                       |
|                                                                     |                   |                                               |                                                                             |
| Nova                TV d.d. (“Nova TV Croatia”)              | 100.0%                 | Croatia                                            | Subsidiary                                                                       |
| Operativna                Kompanija d.o.o. (“OK”)            | 100.0%                 | Croatia                                            | Subsidiary                                                                       |
| Media                House d.o.o.                                        | 100.0%                 | Croatia                                            | Subsidiary                                                                       |
|                                                                     |                   |                                               |                                                                             |
| CME                Media Enterprises B.V.                                | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
| CME                Czech Republic B.V.                                   | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
| CME                Czech Republic II B.V.                                | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
| CME                Germany B.V.                                          | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
| CME                Hungary B.V.                                          | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
| CME                Poland B.V.                                           | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
| CME                Romania B.V.                                          | 100.0%                 | Netherlands                                        | Subsidiary                                                                       |
|                                                                     |                   |                                               |                                                                             |
| CME                Ukraine Holding GmbH                                  | 100.0%                 | Austria                                            | Subsidiary                                                                       |
| CME                Cyprus Holding Ltd.                                   | 100.0%                 | Cyprus                                             | Subsidiary                                                                       |
| CME                Germany GmbH                                          | 100.0%                 | Germany                                            | Subsidiary                (in liquidation)                                       |
| CME                Development Corporation                               | 100.0%                 | USA                                                | Subsidiary                                                                       |
|                                                                     |                   |                                               |                                                                             |
| Central                European Media Enterprises N.V.                   | 100.0%                 | Netherlands                Antilles                | Subsidiary                                                                       |
| Central                European Media Enterprises II B.V.                | 100.0%                 | Netherlands                Antilles                | Subsidiary                                                                       |

| (1) | All                  subsidiaries have been consolidated in our Condensed Consolidated                  Financial Statements. All equity-accounted affiliates have been                  accounted                  for using the equity method. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*Croatia*

*Czech      Republic*

*Romania*

*Slovak      Republic*

*Slovenia*

*Ukraine*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis      of Presentation**

**Stock-based      Compensation**

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**Pro      Forma Disclosures**

|                                                                                                                                                                                  |   |   |                               | **For                  the Three Months Ended March 31** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------|----------------------------------------------------------|--------|
|                                                                                                                                                                                  |   |   |                               | **2005**                                                 |   |
|                                                                                                                                                                                  |   |   |                               |                                                     |   |
| **Net                  loss**                                                                                                                                                         |   |   | **As                  Reported**   |                                                     | **$**  | **(7,949** | **)** |
| Add:                  Stock-based compensation expense included in reported net income,                  net of                  related tax effects                                  |   |   | As                  Reported       |                                                     |   | 3,101 |   |
| Deduct:                  Total stock-based compensation expense determined under fair value                  based                  method for all awards, net of related tax effects |   |   | Pro                  Forma Expense |                                                     |   | (3,112 | ) |
| **Net                  loss**                                                                                                                                                         |   |   | **Pro                  Forma**     |                                                     | **$**  | **(7,960** | **)** |
|                                                                                                                                                                                  |   |   |                               |                                                     |   |   |   |
| Net                  loss per share - Basic:                                                                                                                                          |   |   | As                  Reported       |                                                     | $      | (0.28 | ) |
| Pro                  Forma                                                                                                                                                            |   |   |                               |                                                     | $      | (0.28 | ) |
| Net                  loss per share - Diluted:                                                                                                                                        |   |   | As                  Reported       |                                                     | $      | (0.28 | ) |
| Pro                  Forma                                                                                                                                                            |   |   |                               |                                                     | $      | (0.28 | ) |

**Reclassifications**

**Recent      Accounting Pronouncements**

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**3.      ACQUISITIONS AND DISPOSALS**

**Romania**

*Acquisition      of additional interest - MPI and Pro TV*

|                                                             |   | **Fair                Value on****Acquisition** |       |
|------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                             |   |                                            |       |
| Intangible                assets subject to amortization (1)     |   | $                                               | 4,655      |   |
| Intangible                assets not subject to amortization (2) |   |                                            | 12,947     |   |
| Goodwill                                                         |   |                                            | 11,376     |   |
| Deferred                tax liability                            |   |                                            | (2,816     | ) |
| Minority                interest                                 |   |                                            | 1,038      |   |
| **Total                purchase price**                          |   | **$**                                           | **27,200** |   |

**Slovak      Republic**

*Acquisition      - A.R.J. a.s.*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

|                                                             |   | **Fair                Value on****Acquisition** |       |
|------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                             |   |                                            |       |
| Property,                plant and equipment                     |   | $                                               | 870        |   |
| Program                library                                   |   |                                            | 185        |   |
| Intangible                assets subject to amortization (1)     |   |                                            | 8,128      |   |
| Intangible                assets not subject to amortization (2) |   |                                            | 530        |   |
| Goodwill                                                         |   |                                            | 22,021     |   |
| Deferred                tax liability                            |   |                                            | (1,893     | ) |
| **Total                purchase price (3)**                      |   | **$**                                           | **29,841** |   |

**Ukraine**

*Acquisition      - Ukrpromtorg 2003 LLC*

**4.      GOODWILL AND INTANGIBLE ASSETS**

*Goodwill:*

|                                          |   | **Croatia** |    | **Czech****Republic** |   | **Romania** |   | **Slovak****Republic** |       | **Slovenia**** ** |   | **Ukraine** |   | **Total** |       |
|-----------------------------------------------|--------|-------------|---------|-----------------------|--------|-------------|--------|------------------------|------------|------------------------|--------|-------------|--------|-----------|------------|
|                                          |   |        |    |                  |   |        |   |                   |       |                   |   |        |   |      |       |
| **Balance,                December 31, 2005** |   | **$**       | **695** |                  | **$**  | **706,950** |   | **$**                  | **19,754** |                   | **$**  | **-**       |   | **$**     | **15,088** |   | **$** | **4,096** |   | **$** | **746,583** |   |
| Additions                                     |   |        | -       |                  |   | -           |   |                   | 11,376     |                   |   | 22,021      |   |      | -          |   |   | 5,388 |   |   | 38,785 |   |
| Foreign                currency movements     |   |        | 19      |                  |   | 28,877      |   |                   | -          |                   |   | (54         | )      |      | 292        |   |   | - |   |   | 29,134 |   |
| **Balance,                March 31, 2006**    |   | **$**       | **714** |                  | **$**  | **735,827** |   | **$**                  | **31,130** |                   | **$**  | **21,967**  |   | **$**     | **15,380** |   | **$** | **9,484** |   | **$** | **814,502** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*Broadcast      licenses:*

|                                          |   | **Indefinite-Lived****Broadcast****Licenses** |       | **Amortized****Broadcast****Licenses** |   | **Total**   |   |
|-----------------------------------------------|--------|-----------------------------------------------|------------|----------------------------------------|--------|-------------|--------|
|                                          |   |                                          |       |                                   |   |        |   |
| **Balance,                December 31, 2005** |   | **$**                                         | **18,936** |                                   | **$**  | **152,655** |   | **$** | **171,591** |   |
| Additions                                     |   |                                          | 7,390      |                                   |   | 554         |   |   | 7,944 |   |
| Amortization                                  |   |                                          | -          |                                   |   | (3,748      | )      |   | (3,748 | ) |
| Foreign                currency movements     |   |                                          | 163        |                                   |   | 6,284       |   |   | 6,447 |   |
| **Balance,                March 31, 2006**    |   | **$**                                         | **26,489** |                                   | **$**  | **155,745** |   | **$** | **182,234** |   |

|                                    |   | **March                31,****2006** |        | **December                31,****2005** |   |
|-----------------------------------------|--------|--------------------------------------|-------------|-----------------------------------------|--------|
|                                    |   |                                 |        |                                    |   |
| Gross                value              |   | $                                    | 171,671     |                                    | $      | 163,628 |   |
| Accumulated                amortization |   |                                 | (15,926     | )                                       |   | (10,973 | ) |
| **Total                net book value** |   | **$**                                | **155,745** |                                    | **$**  | **152,655** |   |

*Other      intangible assets:*

|                                          |   | **Trademarks** |       | **Customer****Relationships** |   | **Total**  |   |
|-----------------------------------------------|--------|----------------|------------|-------------------------------|--------|------------|--------|
|                                          |   |           |       |                          |   |       |   |
| **Balance,                December 31, 2005** |   | **$**          | **32,560** |                          | **$**  | **15,098** |   | **$** | **47,658** |   |
| Additions                                     |   |           | 7,002      |                          |   | 11,868     |   |   | 18,870 |   |
| Amortization                                  |   |           | -          |                          |   | (584       | )      |   | (584 | ) |
| Foreign                currency movements     |   |           | 801        |                          |   | 431        |   |   | 1,232 |   |
| **Balance,                March 31, 2006**    |   | **$**          | **40,363** |                          | **$**  | **26,813** |   | **$** | **67,176** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

|                                    |   | **March                31, ****2006** |       | **December                31,****2005** |   |
|-----------------------------------------|--------|--------------------------------------------|------------|-----------------------------------------|--------|
|                                    |   |                                       |       |                                    |   |
| Gross                value              |   | $                                          | 28,839     |                                    | $      | 17,038 |   |
| Accumulated                amortization |   |                                       | (2,026     | )                                       |   | (1,940 | ) |
| **Total                net book value** |   | **$**                                      | **26,813** |                                    | **$**  | **15,098** |   |

**5.      SENIOR NOTES**

|                                                         |   | **Carrying                Value**    |        | **Fair                Value**           |   |
|--------------------------------------------------------------|--------|--------------------------------------|-------------|-----------------------------------------|--------|
|                                                         |   | **March                31,****2006** |        | **December                31,****2005** |   | **March                31,****2006** |   | **December                31,****2005** |   |
|                                                         |   |                                 |        |                                    |   |   |   |   |   |
| Euro                245.0 million 8.25% Senior Notes         |   | $                                    | 296,502     |                                    | $      | 288,984 |   | $ | 330,600 |   | $ | 323,737 |   |
| Euro                125.0 million floating rate Senior Notes |   |                                 | 151,277     |                                    |   | 147,440 |   |   | 161,110 |   |   | 156,324 |   |
|                                                         |   | **$**                                | **447,779** |                                    | **$**  | **436,424** |   | **$** | **491,710** |   | **$** | **480,061** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

| **From:**                                   | **Euro                245.0 Million 8.25%****Senior                Notes****Redemption                Price** | **From:**                                   | **Euro                125.0 Million Floating****Rate                Senior Notes****Redemption                Price** |
|---------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|                                        |                                                                                                          |                                        |                                                                                                                  |
| May                15, 2009 to May 14, 2010 | 104.125%                                                                                                      | May                15, 2007 to May 14, 2008 | 102.000%                                                                                                              |
| May                15, 2010 to May 14, 2011 | 102.063%                                                                                                      | May                15, 2008 to May 14, 2009 | 101.000%                                                                                                              |
| May                15, 2011 and thereafter  | 100.000%                                                                                                      | May                15, 2009 and thereafter  | 100.000%                                                                                                              |

**6.      RESTRICTED CASH**

|                                                          |   | **March                31,****2006** |       | **December                31,****2005** |   |
|---------------------------------------------------------------|--------|--------------------------------------|------------|-----------------------------------------|--------|
|                                                          |   |                                 |       |                                    |   |
| Czech                Republic                                 |   | $                                    | 25,760     |                                    | $      | 24,554 |   |
| Croatia                                                       |   |                                 | 3,735      |                                    |   | 3,640 |   |
| Romania                                                       |   |                                 | 4,068      |                                    |   | - |   |
| Directors’                and officers’ insurance |   |                                 | 5,341      |                                    |   | 5,285 |   |
| Other                                                         |   |                                 | 707        |                                    |   | 693 |   |
| **Total                restricted cash**                      |   | **$**                                | **39,611** |                                    | **$**  | **34,172** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**7. ACCOUNTS      RECEIVABLE**

|                                                          |   | **March                31, ****2006** |        | **December                31,****2005** |   |
|---------------------------------------------------------------|--------|--------------------------------------------|-------------|-----------------------------------------|--------|
| **Trading:**                                                  |   |                                       |        |                                    |   |
| Third-party                customers                          |   | $                                          | 109,378     |                                    | $      | 103,921 |   |
| Less:                allowance for bad debts and credit notes |   |                                       | (10,541     | )                                       |   | (8,612 | ) |
| Related                parties                                |   |                                       | 2,522       |                                    |   | 2,034 |   |
| Less:                allowance for bad debts and credit notes |   |                                       | (304        | )                                       |   | (265 | ) |
| **Total                trading**                              |   | **$**                                      | **101,055** |                                    | **$**  | **97,078** |   |
|                                                          |   |                                       |        |                                    |   |   |   |
| **Other:**                                                    |   |                                       |        |                                    |   |   |   |
| Third-party                customers                          |   | $                                          | 356         |                                    | $      | 257 |   |
| Less:                allowance for bad debts and credit notes |   |                                       | (75         | )                                       |   | (83 | ) |
| Related                parties                                |   |                                       | 442         |                                    |   | 434 |   |
| Less:                allowance for bad debts and credit notes |   |                                       | (290        | )                                       |   | (290 | ) |
| **Total                other**                                |   | **$**                                      | **433**     |                                    | **$**  | **318** |   |
|                                                          |   |                                       |        |                                    |   |   |   |
| **Total                accounts receivable**                  |   | **$**                                      | **101,488** |                                    | **$**  | **97,396** |   |

**8.      OTHER ASSETS**

|                                              |   | **March                31, ****2006** |       | **December                31,****2005** |   |
|---------------------------------------------------|--------|--------------------------------------------|------------|-----------------------------------------|--------|
| **Current:**                                      |   |                                       |       |                                    |   |
| Prepaid                programming                |   | $                                          | 18,026     |                                    | $      | 17,534 |   |
| Other                prepaid expenses             |   |                                       | 7,282      |                                    |   | 6,009 |   |
| Deferred                tax                       |   |                                       | 2,748      |                                    |   | 3,025 |   |
| VAT                recoverable                    |   |                                       | 1,470      |                                    |   | 7,888 |   |
| Loan                to related party              |   |                                       | 600        |                                    |   | 600 |   |
| Capitalized                debt costs             |   |                                       | 2,249      |                                    |   | 2,250 |   |
| Assets                held-for-sale               |   |                                       | 350        |                                    |   | 341 |   |
| Other                                             |   |                                       | 1,683      |                                    |   | 1,209 |   |
| **Total                other current assets**     |   | **$**                                      | **34,408** |                                    | **$**  | **38,856** |   |
|                                              |   |                                       |       |                                    |   |   |   |
| **Non-current:**                                  |   |                                       |       |                                    |   |   |   |
| Capitalized                debt costs             |   | $                                          | 11,200     |                                    | $      | 11,618 |   |
| Loan                to related party              |   |                                       | 1,856      |                                    |   | 1,910 |   |
| Deferred                tax                       |   |                                       | 2,774      |                                    |   | 779 |   |
| Other                                             |   |                                       | 933        |                                    |   | 753 |   |
| **Total                other non-current assets** |   | **$**                                      | **16,763** |                                    | **$**  | **15,060** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**9.      PROPERTY, PLANT AND EQUIPMENT**

|                                                                        |   | **March                31,****2006** |        | **December                31,****2005** |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------|-------------|-----------------------------------------|--------|
|                                                                        |   |                                 |        |                                    |   |
| Land                and buildings                                           |   | $                                    | 28,672      |                                    | $      | 17,548 |   |
| Station                machinery, fixtures and equipment                    |   |                                 | 83,182      |                                    |   | 72,017 |   |
| Other                equipment                                              |   |                                 | 19,316      |                                    |   | 20,447 |   |
| Software                licenses                                            |   |                                 | 13,090      |                                    |   | 8,360 |   |
| Construction                in progress                                     |   |                                 | 8,867       |                                    |   | 5,180 |   |
| **Total                cost**                                               |   |                                 | **153,127** |                                    |   | **123,552** |   |
| Less:                Accumulated depreciation                               |   |                                 | (73,647     | )                                       |   | (64,655 | ) |
| **Total                net book value**                                     |   | **$**                                | **79,480**  |                                    | **$**  | **58,897** |   |
|                                                                        |   |                                 |        |                                    |   |   |   |
| **Assets                held under capital leases (included in the above)** |   |                                 |        |                                    |   |   |   |
| Land                and buildings                                           |   | $                                    | 5,078       |                                    | $      | 4,980 |   |
| Station                machinery, fixtures and equipment                    |   |                                 | 2,019       |                                    |   | 1,434 |   |
| **Total                cost**                                               |   |                                 | **7,097**   |                                    |   | **6,414** |   |
| Less:                Accumulated depreciation                               |   |                                 | (1,458      | )                                       |   | (1,167 | ) |
| **Net                book value**                                           |   | **$**                                | **5,639**   |                                    | **$**  | **5,247** |   |

**10.      ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

|                                                              |   | **March                31, ****2006** |        | **December                31,****2005** |   |
|-------------------------------------------------------------------|--------|--------------------------------------------|-------------|-----------------------------------------|--------|
|                                                              |   |                                       |        |                                    |   |
| Accounts                payable                                   |   | $                                          | 19,708      |                                    | $      | 21,533 |   |
| Programming                liabilities                            |   |                                       | 24,001      |                                    |   | 18,891 |   |
| Settlement                liability                               |   |                                       | -           |                                    |   | 10,007 |   |
| Accrued                interest payable                           |   |                                       | 13,856      |                                    |   | 4,483 |   |
| Deferred                income                                    |   |                                       | 9,104       |                                    |   | 7,202 |   |
| Accrued                staff costs                                |   |                                       | 9,169       |                                    |   | 9,402 |   |
| Other                accrued liabilities                          |   |                                       | 29,584      |                                    |   | 13,331 |   |
| **Total                accounts payable and accrued liabilities** |   | **$**                                      | **105,422** |                                    | **$**  | **84,849** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**11.      CREDIT FACILITIES AND OBLIGATIONS UNDER CAPITAL LEASES**

|                                                          |   |   |                     | **March                31, ****2006** |   | **December                31,****2005** |   |
|---------------------------------------------------------------|--------|--------|--------------------------|--------------------------------------------|--------|-----------------------------------------|--------|
| **Credit                facilities:**                         |   |   |                     |                                       |   |                                    |   |
| Croatia                operations                             |   |   | (a)                - (c) |                                       |   | 1,041                                   |   |   | 1,135 |   |
| Czech                Republic operations                      |   |   | (d)                - (e) |                                       |   | 57,149                                  |   |   | 42,703 |   |
| Romania                operations                             |   |   | (f)                      |                                       |   | 87                                      |   |   | - |   |
| Slovenia                operations                            |   |   | (g)                      |                                       |   | 15,690                                  |   |   | - |   |
| **Total                credit facilities**                    |   |   |                     |                                       | **$**  | **73,967**                              |   | **$** | **43,838** |   |
|                                                          |   |   |                     |                                       |   |                                    |   |   |   |   |
| **Capital                leases**                             |   |   |                     |                                       |   |                                    |   |   |   |   |
| Croatia                operations, net of interest            |   |   |                     |                                       | $      | 82                                      |   | $ | 132 |   |
| Czech                Republic operations, net of interest     |   |   |                     |                                       |   | 5                                       |   |   | 6 |   |
| Romania                operations, net of interest            |   |   |                     |                                       |   | 310                                     |   |   | 290 |   |
| Slovenia                operations, net of interest           |   |   |                     |                                       |   | 4,054                                   |   |   | 4,040 |   |
| Slovak                Republic operations, net of interest    |   |   |                     |                                       |   | 221                                     |   |   | - |   |
| **Total                capital leases**                       |   |   |                     |                                       | **$**  | **4,672**                               |   | **$** | **4,468** |   |
|                                                          |   |   |                     |                                       |   |                                    |   |   |   |   |
| **Total                credit facilities and capital leases** |   |   |                     |                                       | **$**  | **78,639**                              |   | **$** | **48,306** |   |
| **Less                current maturities**                    |   |   |                     |                                       |   | **(73,737**                             | **)**  |   | **(43,566** | **)** |
| **Total                non-current maturities**               |   |   |                     |                                       | **$**  | **4,902**                               |   | **$** | **4,740** |   |

**Croatia**

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**Czech      Republic**

**Romania**

**Slovenia**

*Total      Group*

| 2006                               |   | $      | 73,190      |   |
|------------------------------------|--------|--------|-------------|--------|
| 2007                               |   |   | 158         |   |
| 2008                               |   |   | 166         |   |
| 2009                               |   |   | 175         |   |
| 2010                               |   |   | 183         |   |
| 2011                and thereafter |   |   | 447,874     |   |
| **Total**                          |   | **$**  | **521,746** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*Capital      Lease Commitments*

| 2006                                                           |   | $      | 792       |   |
|----------------------------------------------------------------|--------|--------|-----------|--------|
| 2007                                                           |   |   | 712       |   |
| 2008                                                           |   |   | 543       |   |
| 2009                                                           |   |   | 481       |   |
| 2010                                                           |   |   | 481       |   |
| 2011                and thereafter                             |   |   | 3,183     |   |
|                                                           |   |   | **6,192** |   |
| Less:                amount representing interest              |   |   | (1,520    | )      |
| **Present                value of net minimum lease payments** |   | **$**  | **4,672** |   |

**12.      SHAREHOLDERS’ EQUITY**

*Preferred      Stock*

*Class      A and B Common Stock*

**13.      STOCK-BASED COMPENSATION**

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

|                                                                                              |   | **For                the Three Months Ended March 31,** |    |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                                              |   | **2006**                                                |    | **2005** |   |
|                                                                                              |   |                                                    |    |   |   |
| Stock-based                compensation charged under FIN 44                                      |   | $                                                       | -       |   | $ | 2,656 |   |
| Stock-based                compensation charged under SFAS 123(R) (2005: SFAS                123) |   |                                                    | 688     |   |   | 445 |   |
| **Total                stock-based compensation**                                                 |   | **$**                                                   | **688** |   | **$** | **3,101** |   |

**Stock-based      compensation under FIN 44**

**Stock-based      compensation under SFAS 123(R)**

| Number                of options granted   |   |   | 22,000 |   |
|--------------------------------------------|--------|--------|--------|--------|
| Risk-free                interest rate     |   |   | 4.52   | %      |
| Expected                term (years)       |   |   | 6.25   |   |
| Expected                volatility         |   |   | 45.87  | %      |
| Dividend                yield              |   |   | 0      | %      |
| Weighted-average                fair value |   | $      | 30.74  |   |

|                                                          |   |     **Shares** |          |  **Weighted                  average Exercise Price per Share** |   | **Weighted                  Average Remaining Contractual Term (years)** |   |   **Aggregate                  Intrinsic Value** |     |
|---------------------------------------------------------------|--------|------------------------------------|---------------|----------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|------------------------------------------------------------|----------|
|                                                          |   |                               |          |                                                                 |   |                                                                     |   |                                                       |     |
| Outstanding                  at January 1, 2006               |   |                               | 1,118,275     |                                                                 | $      | 22.23                                                                    |   |                                                       | 7.11     |   | $ | 39,763 |   |
| Granted                                                       |   |                               | 22,000        |                                                                 |   | 59.98                                                                    |   |                                                       |     |   |   |   |   |
| Exercised                                                     |   |                               | (63,000       | )                                                                    |   | 14.54                                                                    |   |                                                       |     |   |   |   |   |
| Forfeited                                                     |   |                               | (7,000        | )                                                                    |   | 32.99                                                                    |   |                                                       |     |   |   |   |   |
| **Outstanding                  at March 31, 2006**            |   |                               | **1,070,275** |                                                                 |   | **23.51**                                                                |   |                                                       | **7.15** |   | **$** | **48,274** |   |
| Vested                  or expected to vest at March 31, 2006 |   |                               | 980,927       |                                                                 |   | 22.26                                                                    |   |                                                       | 7.07     |   |   | 45,470 |   |
| **Exercisable                  at March 31, 2006**            |   |                               | **474,133**   |                                                                 | **$**  | **14.92**                                                                |   |                                                       | **5.62** |   | **$** | **25,457** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**14.      EARNINGS PER SHARE**

|                                                                                                |   | **For                the Three Months Ended March 31,** |        |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------|
|                                                                                                |   | **2006**                                                |        | **2005** |   |
|                                                                                                |   |                                                    |        |   |   |
| **Net loss                available for common shareholders**                                  |   | **$**                                                   | **(18,264** | **)** | **$** | **(7,949** | **)** |
|                                                                                                |   |                                                    |        |   |   |   |   |
| **Weighted                average outstanding shares of common stock                (000’s)** |   |                                                    | **38,100**  |   |   | **28,385** |   |
| Dilutive                effect of employee stock options (000’s)                              |   |                                                    | -           |   |   | - |   |
| **Common                stock and common stock equivalents (000’s)**                          |   |                                                    | **38,100**  |   |   | **28,385** |   |
|                                                                                                |   |                                                    |        |   |   |   |   |
| **Loss per                share:**                                                             |   |                                                    |        |   |   |   |   |
| Basic                                                                                               |   | $                                                       | (0.48       | ) | $ | (0.28 | ) |
| Diluted                                                                                             |   | $                                                       | (0.48       | ) | $ | (0.28 | ) |

**15.      SEGMENT DATA**

| · | expenses                presented as corporate operating costs in our consolidated statements                of                operations and comprehensive                income; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

|                                                                                                                                                                                                                                        |   | **For                the Three Months Ended March 31,** |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------|
|                                                                                                                                                                                                                                        |   | **Segment                Net Revenues (1)**             |        | **Segment                EBITDA** |   |
|                                                                                                                                                                                                                                        |   | **2006**                                                |        | **2005** |   | **2006** |   | **2005** |   |
| **Country:**                                                                                                                                                                                                                                |   |                                                    |        |   |   |   |   |   |   |
| Croatia                (NOVA TV)                                                                                                                                                                                                            |   | $                                                       | 3,810       |   | $ | 4,955 |   | $ | (4,442 | ) | $ | (3,422 | ) |
| Czech                Republic (TV NOVA, GALAXIE SPORT)                                                                                                                                                                                      |   |                                                    | 40,549      |   |   | - |   |   | 12,826 |   |   | - |   |
| Romania                (2)                                                                                                                                                                                                                  |   |                                                    | 29,871      |   |   | 19,649 |   |   | 11,613 |   |   | 5,901 |   |
| Slovak                Republic (MARKIZA TV)                                                                                                                                                                                                 |   |                                                    | 11,206      |   |   | 12,644 |   |   | (977 | ) |   | 2,170 |   |
| Slovenia                (POP TV and KANAL A)                                                                                                                                                                                                |   |                                                    | 10,227      |   |   | 9,933 |   |   | 3,033 |   |   | 2,680 |   |
| Ukraine                (STUDIO 1+1)                                                                                                                                                                                                         |   |                                                    | 25,852      |   |   | 14,360 |   |   | 10,862 |   |   | 2,348 |   |
| **Total                segment data**                                                                                                                                                                                                       |   | **$**                                                   | **121,515** |   | **$** | **61,541** |   | **$** | **32,915** |   | **$** | **9,677** |   |
|                                                                                                                                                                                                                                        |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |
| Reconciliation              to condensed consolidated statement of operations:                                                                                                                                                              |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                        |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |
| **Consolidated                net revenues / income / (loss) before provision for income taxes,                minority                interest, equity in income of unconsolidated affiliates and discontinued                operations** |   | **$**                                                   | **119,754** |   | **$** | **48,304** |   | **$** | **(4,292** | **)** | **$** | **(6,210** | **)** |
| Corporate                operating costs                                                                                                                                                                                                    |   |                                                    | -           |   |   | - |   |   | 7,981 |   |   | 7,731 |   |
| Unconsolidated                equity affiliates (3)                                                                                                                                                                                         |   |                                                    | 1,761       |   |   | 13,237 |   |   | (1,283 | ) |   | 1,908 |   |
| Depreciation                of station property, plant and equipment                                                                                                                                                                        |   |                                                    | -           |   |   | - |   |   | 5,702 |   |   | 2,213 |   |
| Amortization                of broadcast licenses and other intangibles                                                                                                                                                                     |   |                                                    | -           |   |   | - |   |   | 4,332 |   |   | 77 |   |
| Interest                income                                                                                                                                                                                                              |   |                                                    | -           |   |   | - |   |   | (1,453 | ) |   | (1,079 | ) |
| Interest                expense                                                                                                                                                                                                             |   |                                                    | -           |   |   | - |   |   | 10,518 |   |   | 307 |   |
| Foreign                currency exchange loss, net                                                                                                                                                                                          |   |                                                    | -           |   |   | - |   |   | 10,862 |   |   | 729 |   |
| Other                expense                                                                                                                                                                                                                |   |                                                    | -           |   |   | - |   |   | 548 |   |   | 4,001 |   |
| **Total                segment data**                                                                                                                                                                                                       |   | **$**                                                   | **121,515** |   | **$** | **61,541** |   | **$** | **32,915** |   | **$** | **9,677** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

|                                                                                                                                                      |   | **For                  the Three Months Ended March 31,** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------|
| **Depreciation                  of station property, plant and equipment and amortization of broadcast                  licenses and other intangibles:** |   | **2006**                                                  |       | **2005** |   |
|                                                                                                                                                      |   |                                                      |       |   |   |
| Croatia                                                                                                                                                   |   | $                                                         | 529        |   | $ | 618 |   |
| Czech                  Republic                                                                                                                           |   |                                                      | 5,525      |   |   | - |   |
| Romania                                                                                                                                                   |   |                                                      | 1,227      |   |   | 841 |   |
| Slovak                  Republic                                                                                                                          |   |                                                      | 1,471      |   |   | 465 |   |
| Slovenia                                                                                                                                                  |   |                                                      | 730        |   |   | 459 |   |
| Ukraine                                                                                                                                                   |   |                                                      | 729        |   |   | 372 |   |
| **Total**                                                                                                                                                 |   | **$**                                                     | **10,211** |   | **$** | **2,755** |   |
|                                                                                                                                                      |   |                                                      |       |   |   |   |   |
| **Reconciliation                  to condensed consolidated statement of                  operations:**                                                   |   |                                                      |       |   |   |   |   |
| Unconsolidated                  equity affiliates                                                                                                         |   |                                                      | 177        |   |   | 465 |   |
| **Total                  consolidated depreciation and amortization**                                                                                     |   |                                                      | **10,034** |   |   | **2,290** |   |
| Represented                  as follows:                                                                                                                  |   |                                                      |       |   |   |   |   |
| Depreciation                  of station property, plant & equipment                                                                                  |   |                                                      | 5,702      |   |   | 2,213 |   |
| Amortization                  of broadcast licenses and other intangibles                                                                                 |   |                                                      | 4,332      |   |   | 77 |   |

| **Total                  assets (1):**                                        |   | **March                  31, ****2006** |          | **December                  31, 2005** |   |
|-------------------------------------------------------------------------------|--------|----------------------------------------------|---------------|----------------------------------------|--------|
|                                                                          |   |                                         |          |                                   |   |
| Croatia                                                                       |   | $                                            | 24,029        |                                   | $      | 25,017 |   |
| Czech                  Republic                                               |   |                                         | 1,096,046     |                                   |   | 1,018,253 |   |
| Romania                                                                       |   |                                         | 174,645       |                                   |   | 123,699 |   |
| Slovak                  Republic                                              |   |                                         | 44,706        |                                   |   | 41,873 |   |
| Slovenia                                                                      |   |                                         | 82,525        |                                   |   | 62,926 |   |
| Ukraine                                                                       |   |                                         | 75,881        |                                   |   | 49,438 |   |
| **Total                  segment assets**                                     |   | **$**                                        | **1,497,832** |                                   | **$**  | **1,321,206** |   |
|                                                                          |   |                                         |          |                                   |   |   |   |
| **Reconciliation                  to condensed consolidated balance sheets:** |   |                                         |          |                                   |   |   |   |
| Unconsolidated                  equity affiliates                             |   |                                         | (63           | )                                      |   | (41,873 | ) |
| Corporate                                                                     |   |                                         | 178,335       |                                   |   | 109,517 |   |
| **Total                  assets**                                             |   | **$**                                        | **1,676,104** |                                   | **$**  | **1,388,850** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

| **Long-lived                assets (1):**                                   |   | **March                31, ****2006** |       | **December                31,****2005** |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------------|------------|-----------------------------------------|--------|
|                                                                        |   |                                       |       |                                    |   |
| Croatia                                                                     |   | $                                          | 7,510      |                                    | $      | 6,264 |   |
| Czech                Republic                                               |   |                                       | 15,338     |                                    |   | 16,027 |   |
| Romania                                                                     |   |                                       | 14,684     |                                    |   | 13,154 |   |
| Slovak                Republic                                              |   |                                       | 15,298     |                                    |   | 14,245 |   |
| Slovenia                                                                    |   |                                       | 15,255     |                                    |   | 15,523 |   |
| Ukraine                                                                     |   |                                       | 9,547      |                                    |   | 7,127 |   |
| **Total                long-lived assets**                                  |   | **$**                                      | **77,632** |                                    | **$**  | **72,340** |   |
|                                                                        |   |                                       |       |                                    |   |   |   |
| **Reconciliation                to condensed consolidated balance sheets:** |   |                                       |       |                                    |   |   |   |
| Unconsolidated                equity affiliates                             |   |                                       | -          |                                    |   | (14,245 | ) |
| Corporate                                                                   |   |                                       | 1,848      |                                    |   | 802 |   |
| **Total                long-lived assets**                                  |   | **$**                                      | **79,480** |                                    | **$**  | **58,897** |   |

**16.      DISCONTINUED OPERATIONS**

|                                                                |   | **For                the Three Months Ended March 31,** |       |
|---------------------------------------------------------------------|--------|---------------------------------------------------------|------------|
|                                                                |   | **2006**                                                |       | **2005** |   |
|                                                                |   |                                                    |       |   |   |
| Income                on disposal of discontinued operations        |   |                                                    | -          |   |   | 118 |   |
| Tax                on disposal of discontinued operations           |   |                                                    | (3,807     | ) |   | 227 |   |
| **Net                income / (loss) from discontinued operations** |   | **$**                                                   | **(3,807** | **)** | **$** | **345** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**17.      COMMITMENTS AND CONTINGENCIES**

**Commitments**

*a)      Station Programming Rights Agreements*

|                           |   | **March****31,** |       | **December                31,** |   |
|--------------------------------|--------|------------------|------------|---------------------------------|--------|
|                           |   | **2006**         |       | **2005**                        |   |
|                           |   |             |       |                            |   |
| Croatia                        |   | $                | 2,752      |                            | $      | 3,014 |   |
| Czech                Republic  |   |             | 10,314     |                            |   | 22,812 |   |
| Romania                        |   |             | 16,740     |                            |   | 14,073 |   |
| Slovak                Republic |   |             | 3,917      |                            |   | - |   |
| Slovenia                       |   |             | 2,060      |                            |   | 3,080 |   |
| Ukraine                        |   |             | 8,343      |                            |   | 8,864 |   |
| **Total**                      |   | **$**            | **44,126** |                            | **$**  | **51,843** |   |

*b)      Operating Lease Commitments*

|                               |   | **March                31,****2006** |       |
|------------------------------------|--------|--------------------------------------|------------|
|                               |   |                                 |       |
| 2006                               |   | $                                    | 7,220      |   |
| 2007                               |   |                                 | 5,471      |   |
| 2008                               |   |                                 | 1,567      |   |
| 2009                               |   |                                 | 779        |   |
| 2010                               |   |                                 | 778        |   |
| 2011                and thereafter |   |                                 | 394        |   |
| **Total**                          |   | **$**                                | **16,209** |   |

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*c)        Acquisition of minority shareholdings in Romania*

*d)      Other*

*Dutch      tax*

*Czech      Republic - Guarantee and Factoring of Trade Receivables *

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

**Contingencies**

*a)      Litigation*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*Croatia*

*Czech      Republic*

*OSA*

*Antimonopoly      Office*

*Romania*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*Slovenia*

*Slovak      Republic*

*Ukraine*

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

*b)      Licenses*

| **Croatia**                        | The                license of NOVA TV (Croatia) expires in April 2010.                                                                                                                                                                                                                                                 |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Czech                Republic**  | The                license of TV NOVA (Czech Republic) expires in January                2017.                                                                                                                                                                                                                         |
| **Romania**                        | Licenses                expire on dates ranging from July 2006 to February                2014.                                                                                                                                                                                                                        |
| **Slovak                Republic** | The                license of MARKIZA TV expires in September 2019.                                                                                                                                                                                                                                                    |
| **Slovenia**                       | The                licenses of POP TV and KANAL A expire in August 2012.                                                                                                                                                                                                                                               |
| **Ukraine**                        | The                15-hour license of STUDIO 1+1 expires in December 2006. The license                to                broadcast for the remaining nine hours in off prime expires in August                2014. The three licenses held by Ukrpromtorg expire in 2008, 2010                and                2012. |

*Restrictions      on dividends from Consolidated Subsidiaries and Unconsolidated      Affiliates*

**18.      SUBSEQUENT EVENTS**

**Czech      Republic**

**Slovak      Republic**

----

*Index*

**CENTRAL      EUROPEAN MEDIA ENTERPRISES LTD.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular      amounts in US$ 000’s, except per share data)**

**(Unaudited)**

**Other**

----

*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      the      impact of legal proceedings in Ukraine, the effect of additional investment      in      Croatia and Ukraine, the impact of the rationalization of our operations in      the      Czech Republic and the Slovak Republic, our ability to develop and implement      multi-channel strategies generally, the growth of television advertising in      our      markets, the future economic conditions in our markets, future investments      in      television broadcast operations, 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      general regulatory environments where we operate and application of relevant      laws and regulations, the renewals of broadcasting licenses, the rate of      development of advertising markets in countries where we operate, our ability      to      acquire necessary programming and the ability to attract audiences, our ability      to obtain additional frequencies and licenses, and general market and economic      conditions in these countries as well as in the United States and Western      Europe.*

***II.      Executive Summary***

*Continuing      Operations*

|                                               |   | **For                the Three Months Ended March 31,****(US$                000's)** |        |
|----------------------------------------------------|--------|---------------------------------------------------------------------------------------|-------------|
|                                               |   | **2006**                                                                              |        | **2005** |   | ***Movement*** |   |
| Net                revenues                        |   | $                                                                                     | 119,754     |   | $ | 48,304 |   | *$* | *71,450* |   |
| Operating                income / (loss)           |   |                                                                                  | 16,183      |   |   | (2,252 | ) |   | *18,435* |   |
| Net                loss from continuing operations |   |                                                                                  | (14,457     | ) |   | (8,294 | ) |   | *(6,163* | *)* |
| **Net                loss**                        |   | **$**                                                                                 | **(18,264** | **)** | **$** | **(7,949** | **)** | ***$*** | ***(10,315*** | ***)*** |

----

*Index*

| · | In                the three months ended March 31, 2006, we achieved a Segment EBITDA                margin                of 28% compared to 16% for the three months ended March 31, 2005                (Segment                EBITDA is defined and reconciled to                our condensed consolidated US GAAP results in Item 1, Note 15, "Segment                Data"). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                January 11, 2006, we completed the acquisition of a 65.5% interest                in                Ukrpromtorg 2003 LLC (“Ukrpromtorg”), which owns 92.2% of Gravis LLC, the                operator of the GRAVIS television channel in Kiev as well as two                other                local channels in Ukraine |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                January 23, 2006, we completed the acquisition of control of our                Slovak                Republic operations and increased our economic interest from 70.0%                to                80.0% . |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                February 17, 2006, we increased our stake in our Romania operations                to                90.0% by acquiring 5.0% of Pro TV and MPI from Mr.                Sarbu. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                March 7, 2006, the Slovak Republic Media Council extended the broadcasting                license of TV MARKIZA for an additional 12 years, until September                2019. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On                March 29, 2006, we completed a public offering of 2,530,000 shares                of our                Class A Common Stock and raised net proceeds of approximately US$168.6                million. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Management      Changes*

| · | Effective                February 1, 2006, Vaclav Mika was appointed General Director for                the                MARKIZA TV channel; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Effective                February 20, 2006, we appointed Adrian Sarbu to oversee our operations                in                the Czech and Slovak Republic in addition to his existing responsibilities                as General Director of our operations in                Romania. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Future      Developments*

***III.      Analysis of Segment Results***

**OVERVIEW**

----

*Index*

**SEGMENT      FINANCIAL      INFORMATION**

|                                                   |   | **For                the Three Months Ended March 31, (US$ 000's)** |        |
|--------------------------------------------------------|--------|---------------------------------------------------------------------|-------------|
|                                                   |   | **2006**                                                            |        | **(1)** |   | **2005** |   | **(1)** |   |
| **Segment                Net Revenue**                 |   |                                                                |        |   |   |   |   |   |   |
| Croatia                (NOVA TV)                       |   | $                                                                   | 3,810       |   |   | 3 | % | $ | 4,955 |   |   | 8 | % |
| Czech                Republic (TV NOVA, GALAXIE SPORT) |   |                                                                | 40,549      |   |   | 34 | % |   | - |   |   | - | % |
| Romania                (2)                             |   |                                                                | 29,871      |   |   | 25 | % |   | 19,649 |   |   | 32 | % |
| Slovak                Republic (MARKIZA TV) (3)        |   |                                                                | 11,206      |   |   | 9 | % |   | 12,644 |   |   | 21 | % |
| Slovenia                (POP TV and KANAL A)           |   |                                                                | 10,227      |   |   | 8 | % |   | 9,933 |   |   | 16 | % |
| Ukraine                (STUDIO 1+1)                    |   |                                                                | 25,852      |   |   | 21 | % |   | 14,360 |   |   | 23 | % |
| **Total                Segment Net Revenue**           |   | **$**                                                               | **121,515** |   |   | **100** | **%** | **$** | **61,541** |   |   | **100** | **%** |
|                                                   |   |                                                                |        |   |   |   |   |   |   |   |   |   |   |
| **Segment                EBITDA**                      |   |                                                                |        |   |   |   |   |   |   |   |   |   |   |
| Croatia                (NOVA TV)                       |   | $                                                                   | (4,442      | ) |   | (13 | )% | $ | (3,422 | ) |   | (35 | )% |
| Czech                Republic (TV NOVA)                |   |                                                                | 12,826      |   |   | 39 | % |   | - |   |   | - | % |
| Romania                (2)                             |   |                                                                | 11,613      |   |   | 35 | % |   | 5,901 |   |   | 61 | % |
| Slovak                Republic (MARKIZA TV) (3)        |   |                                                                | (977        | ) |   | (3 | )% |   | 2,170 |   |   | 22 | % |
| Slovenia                (POP TV and KANAL A)           |   |                                                                | 3,033       |   |   | 9 | % |   | 2,680 |   |   | 28 | % |
| Ukraine                (STUDIO 1+1)                    |   |                                                                | 10,862      |   |   | 33 | % |   | 2,348 |   |   | 24 | % |
| **Total                Segment EBITDA**                |   | **$**                                                               | **32,915**  |   |   | **100** | **%   ** | **$** | **9,677** |   |   | **100** | **%** |
|                                                   |   |                                                                |        |   |   |   |   |   |   |   |   |   |   |
| **Segment                EBITDA Margin (4)**           |   |                                                                | **27**      | **%** |   |   |   |   | **16** | **%** |   |   |   |

**ANALYSIS      BY GEOGRAPHIC SEGMENT**

**(A)      CROATIA**

**Market      Background: **

----

*Index*

**Three      months ended March 31, 2006 compared to three months ended March 31,      2005**

|                                 |   | **CROATIA                SEGMENT FINANCIAL INFORMATION**            |   |
|--------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                 |   | **For                the Three Months Ended March 31, (US$ 000's)** |   |
|                                 |   | **2006**                                                            |   | **2005** |   | ***Movement*** |   |
| Segment                Net Revenues  |   | $                                                                   | 3,810  |   | $ | 4,955 |   | *$* | *(1,145)* |   |
| Segment                EBITDA        |   | $                                                                   | (4,442 | ) | $ | (3,422 | ) | *$* | *(1,020)* |   |
| Segment                EBITDA Margin |   |                                                                | (117   | )% |   | (69 | )% |   | *(48)* | *%* |

| · | **Segment                Net Revenues**                for the three months ended March 31, 2006 were US$ 3.8 million compared                to                US$ 5.0 million in the three months ended March 31, 2005. This was                principally due to the decline in non-spot revenues. Net spot revenues                decreased by US$ 0.2 million, or 7%, due to lower volumes as a result                of                competitor price reductions and the expiration of legacy deals. However,                NOVA TV (Croatia) increased its prices by 5% in the same                period. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Segment                EBITDA**for                the three months ended March 31, 2006 was a loss of US$ 4.4 million                compared to a loss of US$ 3.4 million in the three months ended March                31,                2005. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(B)      CZECH REPUBLIC**

**Market      Background: **

----

*Index*

**Three      months ended March 31, 2006**

|                                 |   | **CZECH                REPUBLIC SEGMENT FINANCIAL INFORMATION**     |   |
|--------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                 |   | **For                the Three Months Ended March 31, (US$ 000's)** |   |
|                                 |   | **2006**                                                            |   |
| Segment                Net Revenues  |   | $                                                                   | 40,549 |   |
| Segment                EBITDA        |   | $                                                                   | 12,826 |   |
| Segment                EBITDA Margin |   |                                                                | 32     | % |

| · | **Segment                Net Revenues**                for the three months ended March 31, 2006 were US$ 40.5 million.                We did                not own the TV Nova (Czech Republic) group in the three months ended                March                31, 2005. Based on management estimates, we believe that net revenues                for                that period were US$ 55.7 million, indicating a decrease of $15.2                million,                or 27% for the same period in 2006. This decrease can be primarily                attributed to the reaction of advertisers to the implementation of                our new                sales policy which, in combination with the competition from the                Winter                Olympic Games, led to a decrease of approximately 25% in the volume                of                thirty-second spot equivalents                sold. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Segment                EBITDA**for                the three months ended March 31, 2006 was US$ 12.8 million. Costs                charged                in arriving at Segment EBITDA for the three months ended March 31,                2006                included US$ 16.0 million of costs of programming, US$ 6.0 million                of                other operating costs and US$ 5.7 million of selling, general and                administrative expenses. Based on management estimates, we believe                that                Segment EBITDA for the three months ended March 31, 2005 was US$                27.2                million, indicating a decrease of approximately US$ 14.4 million,                or 53%                for the same period in 2006. This can be primarily attributed to                lower                sales in the period ended March 31,                2006. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(C)      ROMANIA**

**Market      Background: **

----

*Index*

**Three      months ended March 31, 2006 compared to three months ended March 31,      2005**

|                                 |   | **ROMANIA                SEGMENT FINANCIAL INFORMATION**                  |   |
|--------------------------------------|--------|---------------------------------------------------------------------------|--------|
|                                 |   | **For                the Three Months Ended March 31, (US$ 000’s)** |   |
|                                 |   | **2006**                                                                  |   | **2005** |   | ***Movement*** |   |
| Segment                Net Revenues  |   | $                                                                         | 29,871 |   | $ | 19,649 |   | *$* | *10,222* |   |
| Segment                EBITDA        |   | $                                                                         | 11,613 |   | $ | 5,901 |   | *$* | *5,712* |   |
| Segment                EBITDA Margin |   |                                                                      | 39     | % |   | 30 | % |   | *9* | *%* |

| · | **Segment                Net Revenues**for                the three months ended March 31, 2006** **increased                by US$ 10.2 million, or 52%, compared to the three months ended March                31,                2005. Net spot revenues increased by US$ 9.6 million, or 52%, driven                by a                31% increase in the number of thirty-second advertising spots sold                across                our three-channel operation compared to the three months ended March                31,                2005. The main growth in the number of thirty-second advertising                spots                sold arose in PRO CINEMA. Average revenues per thirty-second advertising                spot grew at a double-digit rate for all three channels in the three                months ended March 31, 2006 and overall were 20% higher than in the                three                months ended March 31, 2005. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Segment                EBITDA**for                the three months ended March 31, 2006 increased by US$ 5.7 million,                or                97%, compared to the three months ended March 31, 2005, resulting                in an                EBITDA margin of 39%, which represents a significant increase over                the 30%                EBITDA margin delivered in the prior                year. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(D)      SLOVAK REPUBLIC**

**Market      Background:**

----

*Index*

**Three      months ended March 31, 2006 compared to three months ended March 31,      2005**

|                                 |   | **SLOVAK                REPUBLIC SEGMENT FINANCIAL INFORMATION**    |   |
|--------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                 |   | **For                the Three Months Ended March 31, (US$ 000's)** |   |
|                                 |   | **2006**                                                            |   | **2005** |   | ***Movement*** |   |
| Segment                Net Revenues  |   | $                                                                   | 11,206 |   | $ | 12,644 |   | *$* | *(1,438)* |   |
| Segment                EBITDA        |   | $                                                                   | (977   | ) | $ | 2,170 |   | *$* | *(3,147)* |   |
| Segment                EBITDA Margin |   |                                                                | (9     | )% |   | 17 | % |   | *(26)* | *%* |

| · | **Segment                Net Revenues**for                the three months ended March 31, 2006 fell by US$ 1.4 million, or                11%,                compared to the three months ended March 31, 2005. This was primarily                due                to a decline of US$ 1.5 million, or 13%, in net spot sales. In local                currency, net spot revenue declined by 7% in the three months ended                March                31, 2006. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Segment                EBITDA**for                the first three months ended March 31, 2006 was a loss of US$ 1.0                million,                compared to a profit of US$ 2.2 million, for the three months ended                March                31, 2005. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(E)      SLOVENIA**

**Market      Background**

----

*Index*

**Three      months ended March 31, 2006 compared to three months ended March 31,      2005**

|                                 |   | **SLOVENIA                SEGMENT FINANCIAL INFORMATION**           |   |
|--------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                 |   | **For                the Three Months Ended March 31, (US$ 000's)** |   |
|                                 |   | **2006**                                                            |   | **2005** |   | ***Movement*** |   |
| Segment                Net Revenues  |   | $                                                                   | 10,227 |   | $ | 9,933 |   | *$* | *294* |   |
| Segment                EBITDA        |   | $                                                                   | 3,033  |   | $ | 2,680 |   | *$* | *353* |   |
| Segment                EBITDA Margin |   |                                                                | 30     | % |   | 27 | % |   | *3* | *%* |

| · | **Segment                Net Revenues**for                the three months ended March 31, 2006 increased by US$ 0.3 million,                or 3%,                compared to the three months ended March 31, 2005. Net spot revenue                increased by US$ 0.3 million, or 3% in the three months ended March                31,                2006, and there was no material movement in non-spot                revenue. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Segment                EBITDA**for                the three months ended March 31, 2006 increased by US$ 0.4 million,                or 13%                compared to the three months ended March 31, 2005. In local currency                Segment EBITDA increased by 24%. EBITDA margin increased from 27%                for the                period ended March 31, 2005 to 30% in the same period in                2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(F)      UKRAINE**

***Market      Background:***
*We      estimate that the television advertising market in Ukraine, where sales are      denominated primarily in US dollars, showed growth of approximately 38% in      2005      and it is expected that the television advertising market will continue to      grow      between 25% and 35% during 2006.*

----

*Index*

**Three      months ended March 31, 2006 compared to three months ended March 31,      2005**

|                                 |   | **UKRAINE                SEGMENT FINANCIAL INFORMATION**            |   |
|--------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                 |   | **For                the Three Months Ended March 31, (US$ 000's)** |   |
|                                 |   | **2006**                                                            |   | **2005** |   | ***Movement*** |   |
|                                 |   |                                                                |   |   |   |   |   |
| Segment                Net Revenues  |   | $                                                                   | 25,852 |   | $ | 14,360 |   | *$* | *11,492* |   |
| Segment                EBITDA        |   | $                                                                   | 10,862 |   | $ | 2,348 |   | *$* | *8,514* |   |
| Segment                EBITDA Margin |   |                                                                | 42     | % |   | 16 | % |   | *26* | *%* |

| · | **Segment                Net Revenues**for                the three months ended March 31, 2006** **increased                by US$ 11.5 million, or 80%, compared to the three months ended March                31,                2005. Net spot revenue increased by US$ 11.1 million, or 92%, and                non-spot                revenue increased by US$ 0.4 million, or                17%. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Segment                EBITDA**for                the three months ended March 31, 2006** **increased                by US$ 8.5 million, or 363%, compared to the three months ended March                31,                2005 due primarily to strong                revenues. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PROGRAMMING      PAYMENTS AND PROGRAM AMORTIZATION**

|                                   |   | **For                the Three Months Ended****March                31, (US$ 000's)** |       |
|----------------------------------------|--------|---------------------------------------------------------------------------------------|------------|
|                                   |   | **2006**                                                                              |       | **2005** |   |
|                                   |   |                                                                                  |       |   |   |
| Production                expenses     |   | $                                                                                     | 22,975     |   | $ | 8,823 |   |
| Program                amortization    |   |                                                                                  | 25,443     |   |   | 13,499 |   |
| **Cost                of programming** |   | **$**                                                                                 | **48,418** |   | **$** | **22,322** |   |

----

*Index*

|                                                                        |   | **For                the Three Months Ended****March                31, (US$ 000's)** |       |
|-----------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|------------|
|                                                                        |   | **2006**                                                                              |       | **2005** |   |
| Program                amortization:                                        |   |                                                                                  |       |   |   |
| Croatia                (NOVA TV)                                            |   | $                                                                                     | 3,418      |   | $ | 3,851 |   |
| Czech                Republic (TV NOVA)                                     |   |                                                                                  | 7,383      |   |   | - |   |
| Romania                (PRO TV, ACASA, PRO CINEMA and PRO TV INTERNATIONAL) |   |                                                                                  | 6,716      |   |   | 3,872 |   |
| Slovenia                (POP TV and KANAL A)                                |   |                                                                                  | 1,417      |   |   | 1,168 |   |
| Ukraine                (STUDIO 1+1)                                         |   |                                                                                  | 6,073      |   |   | 4,608 |   |
|                                                                        |   |                                                                                  | **25,007** |   |   | **13,499** |   |
| Slovak                Republic (MARKIZA TV)                                 |   |                                                                                  | 436        |   |   | 1,381 |   |
|                                                                        |   | **$**                                                                                 | **25,443** |   | **$** | **14,880** |   |
|                                                                        |   |                                                                                  |       |   |   |   |   |
| Cash                paid for programming:                                   |   |                                                                                  |       |   |   |   |   |
| Croatia                (NOVA TV)                                            |   | $                                                                                     | 4,366      |   | $ | 2,957 |   |
| Czech                Republic (TV NOVA)                                     |   |                                                                                  | 11,936     |   |   | - |   |
| Romania                (PRO TV, ACASA, PRO CINEMA and PRO TV INTERNATIONAL) |   |                                                                                  | 6,606      |   |   | 8,569 |   |
| Slovenia                (POP TV and KANAL A)                                |   |                                                                                  | 1,819      |   |   | 1,271 |   |
| Ukraine                (STUDIO 1+1)                                         |   |                                                                                  | 8,087      |   |   | 3,226 |   |
|                                                                        |   |                                                                                  | **32,814** |   |   | **16,023** |   |
| Slovak                Republic (MARKIZA TV)                                 |   |                                                                                  | 3,279      |   |   | 3,002 |   |
|                                                                        |   | **$**                                                                                 | **36,093** |   | **$** | **19,025** |   |

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

**IV      (a) Net Revenues for the three months ended March 31, 2006 compared to the      three      months ended March 31, 2005**

|                                               |   | **Consolidated                Net Revenues**                        |        |
|----------------------------------------------------|--------|---------------------------------------------------------------------|-------------|
|                                               |   | **For                the Three Months Ended March 31, (US$ 000's)** |        |
|                                               |   | **2006**                                                            |        | **2005** |   | ***Movement*** |   |
|                                               |   |                                                                |        |   |   |   |   |
| Croatia                                            |   | $                                                                   | 3,810       |   | $ | 4,955 |   | *$* | *(1,145* | *)* |
| Czech                Republic                      |   |                                                                | 40,549      |   |   | - |   |   | *40,549* |   |
| Romania                                            |   |                                                                | 29,871      |   |   | 19,056 |   |   | *10,815* |   |
| Slovak                Republic                     |   |                                                                | 9,445       |   |   | - |   |   | *9,445* |   |
| Slovenia                                           |   |                                                                | 10,227      |   |   | 9,933 |   |   | *294* |   |
| Ukraine                                            |   |                                                                | 25,852      |   |   | 14,360 |   |   | *11,492* |   |
| **Total                Consolidated Net Revenues** |   | **$**                                                               | **119,754** |   | **$** | **48,304** |   | ***$*** | ***71,450*** |   |

----

*Index*

| · | US$                40.5 million of net revenues from our Czech Republic operations which                are                being included for the first time since the acquisition of the TV                Nova                (Czech Republic) group was completed in May                2005; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                9.4 million of net revenues from our Slovak Republic operations for                the                period from acquisition on January 23, 2006, which had previously                been                treated as an equity accounted                affiliate; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                23% decrease in the net revenues of our Croatia operations, as described                in "Item 2, III. Analysis of Segment                Results"; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                57% increase in the net revenues of our Romania operations as described                in                "Item 2, III. Analysis of Segment                Results"; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                3% increase in the net revenues of our Slovenia operations as described                in                “Item 2, III. Analysis of Segment Results";                and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An                80% increase in the net revenues of our Ukraine operations as described                in                "Item 2, III. Analysis of Segment                Results". |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**IV      (b) Cost of Revenues for the three months ended March 31, 2006 compared to      the      three months ended March 31, 2005**

|                                                                    |   | **Consolidated                Cost of Revenues**                    |       |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------------|------------|
|                                                                    |   | **For                the Three Months Ended March 31, (US$ 000's)** |       |
|                                                                    |   | **2006**                                                            |       | **2005** |   | ***Movement*** |   |
|                                                                    |   |                                                                |       |   |   |   |   |
| Operating                costs                                          |   | $                                                                   | 22,972     |   | $ | 11,285 |   | *$* | *11,687* |   |
| Cost                of programming                                      |   |                                                                | 48,418     |   |   | 22,322 |   |   | *26,096* |   |
| Depreciation                of station property, plant and equipment    |   |                                                                | 5,702      |   |   | 2,213 |   |   | *3,489* |   |
| Amortization                of broadcast licenses and other intangibles |   |                                                                | 4,332      |   |   | 77 |   |   | *4,255* |   |
| **Total                Consolidated Cost of Revenues**                  |   | **$**                                                               | **81,424** |   | **$** | **35,897** |   | ***$*** | ***45,527*** |   |

**Operating      costs: **

| · | US$                6.0 million of operating costs from our Czech Republic operations,                which                were acquired in May 2005; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                2.9 million of operating costs from our Slovak Republic operations,                which                were consolidated from January 23, 2006, having previously been accounted                for as an equity affiliate; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                0.4 million of additional operating costs from our Romania                operations. |
|--------|----------------------------------------------------------------------------------------------------------|

**Cost      of programming: **
** **

| · | US$                16.0 million of programming costs from our Czech Republic operations,                which were acquired in May 2005; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| · | US$                5.3 million of programming costs from our Slovak Republic operations,                which were consolidated from January 23, 2006, having previously                been                accounted for as an equity                affiliate; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                4.4 million of additional programming costs from our Romania                operations. |
|--------|------------------------------------------------------------------------------------------------------------|

**Depreciation      of property, plant and equipment:**

| · | US$                1.7 million of depreciation from our Czech Republic operations, which                were                acquired in May 2005; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                1.1 million of depreciation from our Slovak Republic operations,                which                were consolidated from January 23, 2006, having previously been accounted                for as an equity affiliate; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                0.4 million additional depreciation of property plant and equipment                from                our Romania operations due to increased capital                investment. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Amortization      of broadcast licenses and other intangibles**

| · | US$                3.8 million of amortization from our Czech Republic operations, which                were                acquired in May 2005; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                0.3 million of amortization from our Slovak Republic operations,                which                were consolidated from January 23, 2006, having previously been accounted                for as an equity affiliate; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | US$                0.3 million of amortization from our Romania operations following                our                acquisitions of increased stakes in 2005 and                2006. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**IV      (c) Station Selling, General and Administrative Expenses for the three months      ended March 31, 2006 compared to the three months ended March 31,      2005**

|                                                                                                      |   | **Consolidated                Station Selling, General and Administrative                Expenses** |       |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|------------|
|                                                                                                      |   | **For                the Three Months Ended March 31, (US$ 000's)**                                 |       |
|                                                                                                      |   | **2006**                                                                                            |       | **2005** |   | ***Movement*** |   |
|                                                                                                      |   |                                                                                                |       |   |   |   |   |
| Croatia                                                                                                   |   | $                                                                                                   | 1,542      |   | $ | 1,521 |   | *$* | *21* |   |
| Czech                Republic                                                                             |   |                                                                                                | 5,682      |   |   | - |   |   | *5,682* |   |
| Romania                                                                                                   |   |                                                                                                | 2,164      |   |   | 2,307 |   |   | *(143* | *)* |
| Slovak                Republic                                                                            |   |                                                                                                | 1,020      |   |   | - |   |   | *1,020* |   |
| Slovenia                                                                                                  |   |                                                                                                | 1,213      |   |   | 1,204 |   |   | *9* |   |
| Ukraine                                                                                                   |   |                                                                                                | 2,545      |   |   | 1,896 |   |   | *649* |   |
| **Total                Consolidated Station Selling, General and Administrative                Expenses** |   | **$**                                                                                               | **14,166** |   | **$** | **6,928** |   | ***$*** | ***7,238*** |   |

| · | US$                5.7 million of station selling, general and administrative expenses                from                our Czech Republic operations, which were acquired in May                2005; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| · | US$                1.0 million of station selling, general and administrative expenses                from                our Slovak Republic operations, which were consolidated from January                23,                2006, having previously been accounted for as an equity                affiliate; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                6% decrease in station selling, general and administrative expenses                of our                Romanian operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

**IV      (d) Corporate Operating Costs for the three months ended March 31, 2006 compared      to the three months ended March 31, 2005**

|                                                                                                      |   | **For                the Three Months Ended March 31, (US$ 000's)** |      |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|-----------|
|                                                                                                      |   | **2006**                                                            |      | **2005** |   | ***Movement*** |   |
|                                                                                                      |   |                                                                |      |   |   |   |   |
| Corporate                operating costs (excluding non-cash stock-based                compensation)     |   | $                                                                   | 7,293     |   | $ | 4,630 |   | *$* | *2,663* |   |
| Non-cash                stock-based compensation                                                          |   |                                                                | 688       |   |   | 3,101 |   |   | *(2,413* | *)* |
| **Corporate                Operating Costs (including non-cash stock-based                compensation)** |   | **$**                                                               | **7,981** |   | **$** | **7,731** |   | ***$*** | ***250*** |   |

| · | A                lease-exit charge of approximately US$ 1.6 million incurred in relation                to                the cost of relocating our London                office; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Professional                fees increased by US$ 0.8 million in the three months ended March                31, 2006                compared to the three months ended March 31, 2005;                and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An                increase in staff-related costs of US$ 0.3                million. |
|--------|--------------------------------------------------------------------------------------|

**IV      (e) Operating Income / (Loss) for the three months ended March 31, 2006 compared      to the three months ended March 31, 2005**

|                                         |   | **For                the Three Months Ended March 31, (US$ 000's)** |       |
|----------------------------------------------|--------|---------------------------------------------------------------------|------------|
|                                         |   | **2006**                                                            |       | **2005** |   | ***Movement*** |   |
|                                         |   |                                                                |       |   |   |   |   |
| **Operating                Income / (Loss)** |   | **$**                                                               | **16,183** |   | **$** | **(2,252** | **)** | ***$*** | ***18,435*** |   |

----

*Index*

**IV      (f) Other income / (expense) items for the three months ended March 31, 2006      compared to the three months ended March 31, 2005**

|                                                                    |   | **For                the Three Months Ended March 31, (US$ 000's)** |    |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------------|---------|
|                                                                    |   | **2006**                                                            |    | **2005** |   | ***Movement*** |   |
|                                                                    |   |                                                                |    |   |   |   |   |
| Interest                income                                          |   | $                                                                   | 1,453   |   | $ | 1,079 |   | *$* | *374* |   |
| Interest                expense                                         |   |                                                                | (10,518 | ) |   | (307 | ) |   | *(10,211* | *)* |
| Foreign                currency exchange loss, net                      |   |                                                                | (10,862 | ) |   | (729 | ) |   | *(10,133* | *)* |
| Other                expense                                            |   |                                                                | (548    | ) |   | (4,001 | ) |   | *3,453* |   |
| Provision                for income taxes                               |   |                                                                | (3,994  | ) |   | (2,341 | ) |   | *(1,653* | *)* |
| Minority                interest in income of consolidated subsidiaries |   |                                                                | (5,441  | ) |   | (577 | ) |   | *(4,864* | *)* |
| Equity                in income / (loss) of unconsolidated affiliates   |   |                                                                | (730    | ) |   | 834 |   |   | *(1,564* | *)* |
| Discontinued                operations                                  |   |                                                                | (3,807  | ) |   | 345 |   |   | *(4,152* | *)* |

**Interest      income**

**Interest      expense**

**Foreign      currency exchange loss, net:**

**Other      expense:**

**Provision      for income taxes:**

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

----

*Index*

**Equity      in income / (loss) of unconsolidated affiliates**

|                                                                      |   | **For                the Three Months Ended March 31, (US$ 000's)** |     |
|---------------------------------------------------------------------------|--------|---------------------------------------------------------------------|----------|
|                                                                      |   | **2006**                                                            |     | **2005** |   | ***Movement*** |   |
|                                                                      |   |                                                                |     |   |   |   |   |
| Slovak                Republic operations                                 |   | $                                                                   | (737     | ) | $ | 908 |   | *$* | *(1,645* | *)* |
| Romanian                operations                                        |   |                                                                | 7        |   |   | (74 | ) |   | *81* |   |
| **Equity                in Income / (Loss) of Unconsolidated Affiliates** |   | **$**                                                               | **(730** | **)** | **$** | **834** |   | ***$*** | ***(1,564)*** | ***)*** |

**Discontinued      operations:**

|                                                       |   | **For                the Three Months Ended March 31, (US$ 000's)** |       |
|------------------------------------------------------------|--------|---------------------------------------------------------------------|------------|
|                                                       |   | **2006**                                                            |       | **2005** |   | ***Movement*** |   |
|                                                       |   |                                                                |       |   |   |   |   |
| Gain                on disposal of discontinued operations |   | $                                                                   | -          |   | $ | 118 |   | *$* | *(118* | *)* |
| Tax                on disposal of discontinued operations  |   |                                                                | (3,807     | ) |   | 227 |   |   | *(4,034* | *)* |
| **Discontinued                operations**                 |   | **$**                                                               | **(3,807** | **)** | **$** | **345** |   | ***$*** | ***(4,152*** | ***)*** |

**IV      (e) Condensed consolidated balance sheet as at March 31, 2006 compared to      December 31, 2005**

| **Summarized                Condensed Consolidated Balance Sheet (US$ 000’s)** |   |
|--------------------------------------------------------------------------------------|--------|
|                                                                                 |   | **March                31, 2006** |   | **December                31, 2005** |   | ***Movement*** |   |
|                                                                                 |   |   |   |   |   |   |   |
| Current                assets                                                        |   | $ | 467,744 |   | $ | 286,926 |   | *$* | *180,818* |   |
| Non-current                assets                                                    |   |   | 1,208,360 |   |   | 1,101,924 |   |   | *106,436* |   |
| Current                liabilities                                                   |   |   | 273,390 |   |   | 206,961 |   |   | *66,429* |   |
| Non-current                liabilities                                               |   |   | 515,063 |   |   | 488,099 |   |   | *26,964* |   |
| Minority                interests in consolidated subsidiaries                       |   |   | 22,700 |   |   | 13,237 |   |   | *9,463* |   |
| Shareholders’                equity                                            |   | $ | 864,951 |   | $ | 680,553 |   | *$* | *184,398* |   |

----

*Index*

**Current      assets:**

**Non-current      assets:**

**Current      liabilities:**

**Non-current      liabilities:**

**Minority      interests in consolidated subsidiaries:**

**Shareholders’      equity:**

***V.      Liquidity and Capital Resources***

**V      (a) Summary of cash flows**

| **For                the Three Months Ended March 31, (US$ 000's)**                           |   |
|-----------------------------------------------------------------------------------------------|--------|
|                                                                                          |   | **2006** |   | **2005** |   |
| Net                cash generated from continuing operating activities                        |   | $ | 31,693 |   | $ | 1,364 |   |
| Net                cash used in continuing investing activities                               |   |   | (67,518 | ) |   | (6,807 | ) |
| Net                cash received from / (used in) financing activities                        |   |   | 196,981 |   |   | (1,742 | ) |
| Net                cash used in discontinued operations - operating                activities |   |   | (1,690 | ) |   | (293 | ) |
| **Net                increase / (decrease) in cash and cash                equivalents**      |   | **$** | **161,283** |   | **$** | **(8,430** | **)** |

*Operating      Activities*

----

*Index*

*Investing      Activities*

| · | A                payment of US$ 27.2 million in connection with the 5% increase in                our                holding of our Romanian operations (for further information, see                Part I,                Item 1, Note 3); |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                payment of US$ 24.4 million in connection with our acquisition of                ARJ (for                further information, see Part I, Item 1, Note                3); |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Payment                of a further US$ 1.5 million following completion of our acquisition                of a                65.5% stake in Ukrpromtorg 2003 LLC (for further information, see                Part I,                Item 1, Note 3); |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Capital                expenditure of US$ 10.5 million;                and |
|--------|----------------------------------------------------------------------------|

| · | Investment                of US$ 4.1 million in restricted cash to secure an overdraft facility                of                our Romania operations (for further information, see Part I, Item                1, Note                11). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Financing      Activities*

| · | Receipt                of approximately US$ 168.6 million (net of fees) from a public offering                of                2,530,000 shares of our Class A Common Stock;                and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Receipts                of US$ 28.6 million from drawing on credit facilities in Czech Republic                and Slovenia to finance the acquisition of ARJ and the increased                investment in our Romania                operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Discontinued      Operations*

**V      (b) Sources and Uses of Ca**
**sh**

----

*Index*

| **Operating                segment (US$ 000’s)** |   | **March                31, 2006** |        | **December                31, 2005** |   |
|--------------------------------------------------------|--------|-----------------------------------|-------------|--------------------------------------|--------|
| Croatia                                                |   | $                                 | 44,871      |                                 | $      | 40,166 |   |
| Czech                Republic                          |   |                              | 462,786     |                                 |   | 441,569 |   |
| Romania                                                |   |                              | 40,698      |                                 |   | 28,873 |   |
| Slovak                Republic                         |   |                              | 88          |                                 |   | 88 |   |
| Slovenia                                               |   |                              | 169         |                                 |   | 39 |   |
| Ukraine                                                |   |                              | 10,397      |                                 |   | 10,617 |   |
| **Total**                                              |   | **$**                             | **559,009** |                                 | **$**  | **521,352** |   |

**V      (c) Contractual Obligations, Commitments and Off-Balance Sheet      Arrangements**

| **Contractual                Obligations**        |   | **Payments                due by period (US$ 000’s)** |        |
|---------------------------------------------------|--------|-------------------------------------------------------------|-------------|
|                                              |   | **Total**                                                   |        | **Less                than 1 year** |   | **1-3                years** |   | **3-5                years** |   | **More                than 5 years** |   |
| Long-Term                Debt - principal         |   | $                                                           | 521,746     |   | $ | 73,190 |   | $ | 324 |   | $ | 358 |   | $ | 447,874 |   |
| Long-Term                Debt - interest          |   |                                                        | 233,241     |   |   | 36,813 |   |   | 73,117 |   |   | 73,084 |   |   | 50,227 |   |
| Capital                Lease Obligations          |   |                                                        | 6,192       |   |   | 792 |   |   | 1,255 |   |   | 962 |   |   | 3,183 |   |
| Operating                Leases                   |   |                                                        | 16,209      |   |   | 7,220 |   |   | 7,038 |   |   | 1,557 |   |   | 394 |   |
| Unconditional                Purchase Obligations |   |                                                        | 61,082      |   |   | 53,371 |   |   | 7,563 |   |   | 99 |   |   | 49 |   |
| Other                Long-Term Obligations        |   |                                                        | 9,773       |   |   | 6,111 |   |   | 3,662 |   |   | - |   |   | - |   |
| **Total                Contractual Obligations**  |   | **$**                                                       | **848,243** |   | **$** | **177,497** |   | **$** | **92,959** |   | **$** | **76,060** |   | **$** | **501,727** |   |

*Long-Term      Debt*

|                                     |   |   |                     | **March                31, 2006****(US                $ 000's)** |   |
|------------------------------------------|--------|--------|--------------------------|------------------------------------------------------------------|--------|
| CME                Ltd.                  |   |   | (1)                      |                                                             | $      | 447,779 |   |
| Czech                Republic operations |   |   | (2)                - (3) |                                                             |   | 57,149 |   |
| Slovenia                operations       |   |   | (4)                      |                                                             |   | 15,690 |   |
| Croatia                operations        |   |   | (5)                - (7) |                                                             |   | 1,041 |   |
| Romania                operations        |   |   | (8)                      |                                                             |   | 87 |   |
| **Total**                                |   |   |                     |                                                             | **$**  | **521,746** |   |

| (1) | In                May 2005, we issued Senior Notes in the aggregate principal amount                of Euro                370.0 million consisting of Euro 245.0 million of 8.25% Senior Notes                due                May 2012 and Euro 125.0 million of floating rate Senior Notes due                May                2012, which bear interest at six-month Euro Inter-Bank Offered Rate                (“EURIBOR”) plus 5.50% (7.98% was applicable at March 31, 2006). Interest                is payable semi-annually in arrears on each May 15 and November 15,                commencing November 15, 2005. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| (2) | CET                21 has a four-year credit facility of CZK 1.2 billion (approximately                US$                48.8 million) with Ceska Sporitelna, a.s. (“CS”). The final repayment date                is October 31, 2009. This facility may, at the option of CET 21,                be drawn                in CZK, USD or Euro and bears interest at the three-month, six-month                or                twelve-month LIBOR, EURIBOR or Prague Inter-Bank Offered Rate (“PRIBOR”)                rate plus 1.95%. This facility is secured by a guarantee of CME Media                Services and a pledge of receivables, which are also subject to a                factoring arrangement between CME Media Services and Factoring Ceska                Sporitelna, a.s., a subsidiary of CS. As at March 31, 2006, two amounts                of                CZK 0.5 billion and CZK 0.6 billion (approximately US$ 46.6 million)                have                been drawn under this facility and bear interest at 3.99% and 4.00%,                respectively (the applicable three-month PRIBOR rates at March 31,                2006                were 2.04 and 2.05%). Following the merger of CET 21 with CME Media                Services, scheduled for 2006, this loan will be                renegotiated. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | CET                21 and CME Media Services have a working capital credit facility                of CZK                250.0 million (approximately US$ 10.6 million) with CS, expiring                October                31, 2006. This working capital facility bears interest at the three-month                PRIBOR rate plus 1.65%. This facility is secured by a pledge of                receivables, which are also subject to a factoring arrangement between                CME                Media Services and Factoring Ceska Sporitelna, a.s.. As at March                31, 2006,                CZK 250.0 million (approximately US$ 10.6 million) was drawn under                this                facility bearing interest at 3.69% (the applicable three-month PRIBOR                rate                at March 31, 2006 was 2.04%). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | A                revolving five-year facility agreement (the “Revolving Facility”) was                entered into for up to Euro 37.5 million (approximately US$ 45.4                million)                in aggregate principal amount among Pro Plus, ING Bank N.V., Nova                Ljubljanska Banka d.d., Ljubljana and Bank Austria Creditanstalt                d.d.,                Ljubljana. The facility availability amortizes by 10% each year for                four                years commencing one year after signing, with 60% repayable after                five                years. This facility is secured by a pledge of the bank accounts                of Pro                Plus, the assignment of certain receivables, a pledge of our interest                in                Pro Plus and a guarantee of our wholly-owned subsidiary CME Media                Enterprises B.V. Loans drawn under this facility will bear interest                at a                rate of EURIBOR for the period of drawing plus a margin of between                2.10%                and 3.60% that varies according to the ratio of consolidated net                debt to                consolidated broadcasting cash flow for Pro Plus. As at March 31,                2006,                the balance drawn and outstanding under this revolving facility is                Euro                13.0 million (approximately US$ 15.7 million) bearing interest at                4.73%                annually. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 three-month EURIBOR plus                2.50%                and are repayable in quarterly installments until April 1, 2011.                As at                March 31, 2006, a rate of 5.00% applied to these loans.                These loan facilities are secured by the real property and fixed                assets of                OK, which as at March 31, 2006 have a carrying amount of approximately                US$                0.3 million. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| (6) | Euro                0.01 million (approximately US$ 0.01 million) was drawn down on a                loan                agreement our Croatian operations have with Hypo Alpe-Adria-Bank                d.d.                This                loan bears a fixed interest rate of 7.25% and is repayable on June                30,                2006. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Euro                0.1 million (approximately US$ 0.1 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 three-month EURIBOR                plus                3.00% and is repayable on October 1, 2006. As at March 31, 2006 a                rate of                5.50% applied to this loan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | New                Romanian Lei 0.3 million (approximately US$ 0.1 million) was drawn                under a                Euro 5.0 million overdraft facility with ING Bank N.V. Amsterdam,                bearing                interest at 10.60% as at March 31, 2006. This facility is secured                by the                assignment of certain accounts receivable and allows drawings to                be made                in US dollars (bearing interest at one-month LIBOR plus 2.00%), Euro                (bearing interest at one-month EURIBOR plus 2.00%) or New Romanian                Lei                (bearing interest at 'best market rate'). The facility is secured                until                June 29, 2006 by cash collateral of New Romanian Lei 11.9 million                (approximately US$ 4.1 million) and the assignment of certain accounts                receivable, when the facility will be reduced from Euro 5.0 million                to                Euro 2.0 million on June 29, 2006 and the cash collateral                released. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Capital      Lease Obligations*

*Operating      Leases*

*Unconditional      Purchase Obligations*

*Other      Long-Term Obligations*

**V      (d) Cash Outlook**

----

*Index*

**V      (e) Tax Inspections**

**V      (f) Off-Balance Sheet Arrangements**

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

----

*Index*

----

*Index*

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

**Foreign      Currency Exchange Risk Management**

**Interest      Rate Risk Management**

*Interest      Rate Table as at March 31, 2006*

| **Expected                Maturity Dates**    |   | **2006** |      | **2007** |   | **2008** |   | **2009** |   | **2010** |   | **Thereafter** |   |
|-----------------------------------------------|--------|----------|-----------|----------|--------|----------|--------|----------|--------|----------|--------|----------------|--------|
|                                          |   |     |      |     |   |     |   |     |   |     |   |           |   |
| **Total                debt in Euro (000's)** |   |     |      |     |   |     |   |     |   |     |   |           |   |
| Fixed                rate                     |   |     | 7         |     |   | -        |   |     | -      |     |   | -              |   |   |   |   |   | 245,000 |   |
| Average                interest rate (%)      |   |     | 7.25      | %        |   | -        |   |     | -      |     |   | -              |   |   |   |   |   | 8.25 | % |
| Variable                rate                  |   |     | 13,283    |     |   | 131      |   |     | 137    |     |   | 145            |   |   | 151 |   |   | 125,078 |   |
| Average                interest rate (%)      |   |     | 4.77      | %        |   | 5.00     | %      |     | 5.00   | %        |   | 5.00           | %      |   | 5.00 | % |   | 7.98 | % |
|                                          |   |     |      |     |   |     |   |     |   |     |   |           |   |   |   |   |   |   |   |
| **Total                debt in CZK (000's)**  |   |     |      |     |   |     |   |     |   |     |   |           |   |   |   |   |   |   |   |
| Fixed                rate                     |   |     | -         |     |   | -        |   |     | -      |     |   | -              |   |   |   |   |   | - |   |
| Average                interest rate (%)      |   |     | -         |     |   | -        |   |     | -      |     |   | -              |   |   |   |   |   | - |   |
| Variable                rate                  |   |     | 1,350,000 |     |   | -        |   |     | -      |     |   | -              |   |   |   |   |   | - |   |
| Average                interest rate (%)      |   |     | 3.94      | %        |   | -        |   |     | -      |     |   | -              |   |   |   |   |   | - |   |

*Variable      Interest Rate Sensitivity as at March 31, 2006*

|                                                              |   |                                                  |                          |                                                                                |   | **Yearly                interest charge if interest rates increase by (US$                000s):** |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------------|-------------------------------|-------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
| **Value                of Debt as at March 31, 2006 (US$ 000's)** |   | **Interest                Rate as at March 31, 2006** |                          | **Yearly                Interest Charge ****(US$                000’s)** |   |  **1%**                                                                                       |   |  **2%** |   |  **3%** |   |  **4%** |   |  **5%** |   |
|                                                              |   |                                                  |                          |                                                                                |   |                                                                                               |   |   |   |   |   |   |   |   |   |
| 168,087(Euro                138.9 million)                        |   |                                                  | 4.73%                - 10.60% |                                                                                | $      | 12,875                                                                                             |   | $ | 14,556 |   | $ | 16,237 |   | $ | 17,918 |   | $ | 19,599 |   | $ | 21,280 |   |
| 57,148(CZK                1,350.0 million)                        |   |                                                  | 3.69                - 4.00%   |                                                                                |   | 2,251                                                                                              |   |   | 2,822 |   |   | 3,394 |   |   | 3,965 |   |   | 4,537 |   |   | 5,108 |   |
| **Total**                                                         |   |                                                  |                          |                                                                                | **$**  | **15,126**                                                                                         |   | **$** | **17,378** |   | **$** | **19,631** |   | **$** | **21,883** |   | **$** | **24,136** |   | **$** | **26,388** |   |

----

*Index*

**Item      4. Controls and Procedures**

**PART      II**

**OTHER      INFORMATION**

**Item      1. Legal Proceedings**

*General*

*Croatia*

*Czech      Republic*

*OSA*

----

*Index*

*Antimonopoly      Office*

*Romania*

*Slovenia*

*Slovak      Republic*

*Ukraine*

----

*Index*

**Item      1A. Risk Factors**

----

*Index*

**Item      6. Exhibits**

| 10.50  | Underwriting                Agreement, dated March 23, 2006                                                  |
|--------|--------------------------------------------------------------------------------------------------------------|
|   |                                                                                                         |
| 31.01  | Sarbanes-Oxley                Certification s. 302 CEO, dated May 4, 2006                                    |
| 31.02  | Sarbanes-Oxley                Certification s. 302 CFO, dated May 4, 2006                                    |
| 32.01  | Sarbanes-Oxley                Certification - CEO and CFO, dated May 4, 2006 (furnished                only) |

**SIGNATURES**

| Date:                May 4, 2006   | /s/                  Michael Garin                                                     |   |
|------------------------------------|----------------------------------------------------------------------------------------|--------|
|                               | Michael                  Garin                                                         |
|                               | Chief                  Executive Officer                                               |
|                               | (Duly                  Authorized Officer)                                             |
|                               |                                                                                   |
|                               |                                                                                   |
| Date:                  May 4, 2006 | /s/                  Wallace Macmillan                                                 |   |
|                               | Wallace                  Macmillan                                                     |
|                               | Vice                  President - Finance                                              |
|                               | (Principal                  Financial Officer and Accounting                  Officer) |

----

*Index*

**EXHIBIT      INDEX**

| 10.50  | Underwriting                Agreement, dated March 23, 2006                                                         |
|--------|---------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                |
| 31.01  | s.                302 Sarbanes-Oxley Certification - CEO, dated May 4,                2006                          |
| 31.02  | s.                302 Sarbanes-Oxley Certification - CFO, dated May 4,                2006                          |
| 32.01  | s.                906 Sarbanes-Oxley Certification - CEO and CFO, dated May 4, 2006                (furnished only) |

----