Munich, May 3, 2007 - Tele München Group (TMG), founded in 1970 and managed by Dr. Herbert G. Kloiber for the past thirty years, once more achieved a record result for the financial year 2006. Turnover continued to rise and reached USD 363 million, an increase of 15% in comparison to the previous year (2005: USD 316 million).

The EBIT in accordance with IFRS reached USD 48 million.

In 2006, Tele München's core business, film licensing, reached a turnover level of USD 233 million, as a result of successful deals made with all important public and commercial broadcasters in the German speaking markets. TMG expanded its already highly attractive film library by investing over USD 135 million into film rights, such as further theatrical highlights as well as TV-productions and animated programs, thus gearing up for the future demand on the German TV market.

TMG also increased its investments into the production business. Subsidiary Clasart Film produced its new feature film RUNAWAY HORSE (Director: Rainer Kaufmann), based on the famous novel by Martin Walser. This feature film will be theatrically released in Germany in fall 2007 by TMG subsidiary Concorde Filmverleih. Rosamunde Pilcher's THE SHELL SEEKERS was produced under the label Clasart Television and, besides its tremendous broadcasting results on ZDF, was successfully sold to 28 countries all over the world. Clasart Classic realised six opera productions in co-operation with the Zurich Opera House and recorded Anton Bruckner's Fifth Symphony with Franz Welser-Möst and the Cleveland Orchestra with successful international sales results.

Once more, Concorde Home Entertainment has achieved outstanding results in 2006. After their release, the feature titles THE BROTHERS GRIMM and SILENT HILL immediately placed first on the rental charts and remained amongst the top ten sell-through DVD titles for weeks in a row. Furthermore, Concorde Home Entertainment achieved an impressive success with its newly placed label 'Classic Selection', publishing for the first time masterpieces such as DON GIOVANNI and CINEMA PARADISO on DVD. With the brand 'The Legendary Miniseries', Concorde Home Entertainment repeated its great sales results as achieved during the previous year thanks to several film classics such as DEUX ANS DE VACANCES and MICHAEL STROGOFF released on DVD for the first time.

TMG's broadcasting business equally developed positively. Tele 5’s advertising revenues increased by 58% compared to the previous year. The overall market share for 2006 in the target group (14-49 years) amounts to 0.6% and rose by 49% compared to the previous year. Tele 5 reached a market share of 0.7% in the extended prime time (20:00 till 01:00) (14-49 years), which represents an increase of 23%.

ATV's gross advertising revenues amounted to USD 54 million in 2006. Its market share in the 12-29 target group was of 3.9%, and reached 4.8% in the 12-49 target group. Thus, ATV managed to increase its market share in the 12-49 segment by 5.5% and in the 12-29 segment even by 11.7%.

Tele 5 as well as ATV could expand their technical reach as planned for 2006. Tele 5 reaches 33.5 million households, GfK-numbers indicate a technical reach of 85.1% KASAT (cable and satellite) (AGF). ATV now reaches 83% of all Austrian TV-households, according to Teletest.

In 2006, TMG consolidated once again its majority stake (53.17%) in the publicly listed CineMedia Film AG, Germany's leading post-production service company.

The digital media market represents one of the fastest growing business segments of the media future. To guarantee full exploitation of this potential, TMG founded a joint venture, the On Demand Deutschland GmbH, together with the On Demand Group, a company which is already fully established in the pay-per-view and on-demand market. This newly founded company is aimed at offering customised full-service digital solutions to corresponding platforms and providers. On Demand Deutschland recently took on Unity Media's management for the service 'cinema on demand'.

Thanks to its excellent market positioning, TMG will also secure a top position among the independent media companies in Germany in 2007.

For further information, please contact:

Office Dr. Kloiber
Tel: +49 89 290 93-132, kneer@tmg.de / galambos@tmg.de