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13.07.2009

Vasil Kisil & Partners advises Central European Media Enterprises Ltd. on Joint Venture with Mr. Igor Kolomoisky

On July 2, 2009 Central European Media Enterprises Ltd. (CME) officially announced the entering into an agreement with Mr. Igor Kolomoisky. Following the injection of $100 mln in cash and contribution of 100% of TET channel into Studio 1+1 Group, Mr. Igor Kolomoisky will become a 49% shareholder in CME’s Ukrainian operations. The transaction is expected to close by the end of the third quarter of 2009, subject to receipt of regulatory approvals.

CME is a broadcasting company operating leading networks in seven Central and Eastern European countries with an aggregate population of approximately 97 million people. CME’s television stations are located in Bulgaria (Pro.bg and Ring.bg), Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema and Nova Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia (TV Markíza), Slovenia (POP TV and Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International and Kino). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol “CETV”.

TET TV has been operating in Ukraine since 1994. It has a technical reach of 92% and an all-day audience share of about 2% in Q1 2009 in its 18 - 54 target demographic group. TET TV holds a satellite broadcasting license, eight terrestrial broadcasting licenses and two radio broadcasting licenses. According to unaudited figures provided by the management of the TET TV channel, it had revenues of approximately $12 million in 2008.

Vasil Kisil & Partners law firm acted as a legal counsel to CME under the Ukrainian law. Vasil Kisil & Partners performed legal due diligence of TET Group companies and advised on pre-deal restructuring, as well as on the transaction aspects involving Ukrainian assets, including the Ukrainian merger clearance.
 
The legal support was provided by Vasil Kisil & Partners team led by Denis Lysenko (partner, Head of Corporate / M&A and Competition practice), Anna Babych (senior associate, Corporate / M&A practice) and Mariya Nizhnik (senior associate, Competition practice). On this project Vasil Kisil & Partners was working in cooperation with Debevoise & Plimpton LLP (London office), legal counsel to CME under English law.