ProfMedia Holding

ProfMedia is the largest private diversified media holding in Russia. The Company’s consolidated sales volume exceeded $400 million in 2006.

Company Performance Indices
(millions of US dollars)

	2002	2003	2004	2005	2006	2007
Revenues	100.4	112.6	142.7	162.6	400	480
Market Value	182.7	206.1	159.6	384.7	-	-

PUBLISHING BUSINESS

ProfMedia started out as a publishing business. In 1997, the Company became the principal stakeholder in Komsomolskaya Pravda daily. The newspaper assets portfolio grew steadily, and in 2005 Komsomolskaya Pravda, Sovietsky Sport, and Express Gazeta owned by the Holding were merged into the Komsomolskaya Pravda Publishers, the largest newspaper company in Russia in terms of earnings and reading audience.

In 2007, ProfMedia sold Komsomolskaya Pravda Publishers in compliance with its repositioning strategy.

Business Media Communications (BMC) was established in 2004 with the focus on publishing the b2b magazines. In August 2006 it changed its name to B2B Media, which fully reflects its field of activities, i.e. business-to-business media products.

In the end of 2008, the «B2B Media» was sold in the framework of ProfMedia’s re-positioning strategy.

ProfMedia Holding bought the Afisha Publishers in early 2006. Being leader on the market of information about recreational activities and entertainment, Afisha publishes such magazines as Afisha: Entertainment in Moscow, Afisha: Entertainment in St. Petersburg, Afisha-Mir, Afisha: All Entertainmen of the Universe, The Big City Magazin, and a series of travel guides. Afisha runs the Afisha.ru, BG.ru, Afisha-Mir.ru websites.

RADIO

In 2000, ProfMedia entered the radio market and acquired the Avtoradio station, which is among the Moscow top FM radio stations. The second Moscow-based radio station, Radio Energy, was launched in 2003. At the same time, the Broadcasting Corporation ProfMedia (BCPM) was established within the Holding to enhance the management of the growing radio business. In 2006 Radio Energy FM was officially permitted to use the world known brand NRJ owned by the French media group NRJ. The BCPM radio business gradually expanded to include Humor FM radio station in September 2005. Russian Songs, the fourth station of the Group, has been running on 98.8 FM since early 2006.

MOVIE INDUSTRY

ProfMedia is the largest private investor in the movie industry in Russia. Movie industry became ProfMedia priority in 2002, when the Cinema Park was launched, a project, which provided for the establishment of a national network of new-generation multiplex movie theaters. Currently, Cinema Park runs three Moscow-based multiplex theaters, one nine-screener in St. Petersburg, and one eight-screener in Tyumen, a nine screener in Cheliabinsk and an eight screener in Naberezhnye Chelny. By the end of 2009, Cinema Park’ network will include 200 screens all around the country.

In late 2005, the Holding acquired the controlling stake in the Central Partnership Company, which had been operating on the Russian market since 1997. Today the Central Partnership is the biggest movie company in Russia. Central Partnership Company is a diversified distributor and producer of the television and cinema products. The movie library owned by Central Partnership includes rights to over 1,400 movies and 3,000 hours of TV series. In partnership with Central Partnership ProfMedia plans to include the production of soap operas and sitcoms and  strengthen its presence on the dynamically developing new media market. The Company is actively engaged in promoting its own movies on the international market.

TV

In 2006, ProfMedia completed an important stage of development, modernized its assets, almost entirely overhauling the Company. An important aspect of this process was entering the television market, which represents half of the advertising market of the country. At the beginning of the year the Holding acquired 100 percent of the stock of the 2x2 TV channel broadcasting in Moscow and Moscow Region. In April 2007, a 24-hour cartoon channel for a target audience of 11 to 34 years was launched on this frequency.

In the fall of 2006, the Holding purchased one of the major private commercial companies TV 3. In summer 2007, ProfMedia acquired MTV Russia and VH1 Russia, thus  becoming one of the major players of the TV market.

INTERNET

Along with traditional media, Prof Media develops new channels of the contents distribution. A major step in this direction was acquisition of Rambler Media the largest diversified Internet company in Russian segment, which includes entertainment resources, online services, which provides services for making the contents available. Company’s audience covers the world community of the Russian language Internet users of about 300 million people. Its main Internet resource, Rambler.ru portal is visited monthly by 28.5 million people with over 1.5 pages requested per month. Rambler media shares are quoted at AIM section at the London stock exchange.

MANAGEMENT

Today, ProfMedia is a largest private investor in the main segments of the Russian media market. The Company acts in consistence with the principles of honesty, transparency, openness for shareholders and partners, sets up new standards for the Russian media market operation. Prof Media has its accounting records audited annually according to the international accounting standards.

	ProfMedia Holding President — Rafael Akopov 17/4 Ostozhenka str., 119034 Moscow, Russia Phone: (495) 787 53 35 (multiline) Fax: (495) 787 5305. e-mail: inbox@profmedia.ru, site: www.profmedia.ru

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