New Agreement Signed Between CTC Media And Video International

MOSCOW, Nov. 12, 2010 (GLOBE NEWSWIRE) -- CTC Media, Inc. ("CTC Media" or the "Company") (Nasdaq:CTCM), Russia's leading independent media company, today announced that its 100% owned in-house advertising sales agency Closed Joint Stock Company EvereST-S ("EvereST-S") has signed a five year agreement with Closed Joint Stock Company "Company TSV", a member of the Video International group ("Video International"). The agreement takes effect from January 1, 2011.

EvereST-S was established in September 2010 to serve as the exclusive advertising sales house for CTC Media's three Russian television networks – CTC, Domashny and DTV. Under the terms of the agreement with Video International, EvereST-S will receive a five year license to use Video International's proprietary software, including modules such as the Automated System for the Placement of Television Advertising, the Automated Document Management System, and the Media Calculator. In addition, Video International will provide EvereST-S with a number of supporting services, including technical support and consulting, software integration, as well as advertising market research and analysis including forecasts and surveys.

Under the terms of the agreement, EvereST-S will pay Video International a license fee for the use of the software, as well as service fees. The aggregate compensation payable will be calculated on the basis of CTC Media's channels' annual gross television advertising revenues excluding revenues from social advertising, some sponsorship options and cross promotions. CTC Media anticipates that the aggregate effective compensation payable to Video International under the terms of the agreement together with additional cost incurred in connection with EvereST-S operations will amount to a lower percentage of the Company's gross television advertising revenues than it has paid to date to Video International in its capacity as the Company's sole advertising sales agency. It has also been agreed between the parties that the compensation payable to Video International may be decreased on an annual basis by the mutual consent of the parties.