CTC Media Financial Results For The Fourth Quarter And Full Year Ended December 31, 2010

MOSCOW, March 1, 2011 (GLOBE NEWSWIRE) -- CTC Media, Inc. ("CTC Media" or "the Company") (Nasdaq:CTCM), Russia's leading independent media company, today announced its unaudited consolidated financial results for the fourth quarter and twelve months ended December 31, 2010.

	Three Months			Twelve Months
	Ended December 3 1 ,			Ended December 31,
(US$ 000's except per share data)	200 9	20 10	Change	2009	2010	Change
Total operating revenues	$180,507	$222,321	23%	$506,113	$601,285	19%
Total operating expenses (before non-recurring items) 1	(96,460)	(121,545)	26%	(306,311)	(394,167)	29%
Total operating expenses	(143,787)	(121,545)	-15%	(353,638)	(394,167)	11%
Adjusted OIBDA 2,3	87,382	104,358	19%	211,256	220,854	5%
Adjusted OIBDA margin 2,3	48.4%	46.9%		41.7%	36.7%
OIBDA 2	40,055	104,358	161%	163,929	220,854	35%
OIBDA margin 2	22.2%	46.9%		32.4%	36.7%
Adjusted net income attributable to CTC Media, Inc. stockholders 3	64,466	75,329	17%	143,967	145,731	1%
Adjusted diluted earnings per share 3	$0.41	$0.48	17%	$0.91	$0.93	2%
Net income attributable to CTC Media, Inc. stockholders	20,887	75,329	261%	100,389	145,731	45%
Fully diluted earnings per share	$0.13	$0.48	269%	$0.64	$0.93	45%

¹ Total operating expenses (before non-recurring items) is a non-GAAP financial measure that excludes an $18.7 million charge arising from the impairment of the broadcasting licenses of certain regional owned-and-operated stations in Russia in the fourth quarter of 2009 and a $28.6 million stock-based compensation expense recognized in conjunction with the settlement of litigation brought by CTC Media against its former CEO in the fourth quarter of 2009. Please see the accompanying financial tables at the end of this press release for a reconciliation of total operating expenses (before non-recurring items) to GAAP total operating expenses.

² OIBDA is defined as operating income before depreciation and amortization (excluding amortization of programming rights and sublicensing rights). OIBDA margin is defined as OIBDA divided by total operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial measures. Please see the accompanying financial tables at the end of this press release for a reconciliation of OIBDA to operating income and OIBDA margin to operating income margin.

³ All adjusted numbers are non-GAAP financial measures reported before the non-recurring items described above. Please see the accompanying financial tables at the end of this release for a reconciliation of adjusted OIBDA to OIBDA, adjusted net income to GAAP reported net income and adjusted diluted earnings per share to GAAP reported earnings per share. FINANCIAL HIGHLIGHTS

• Total revenues up 28% year-on-year in ruble terms in Q4 and up 15% for the full year
• Russian advertising revenues up 22% year-on-year in ruble terms in Q4 and up 13% for the full year
• Adjusted OIBDA up 19% year-on-year in US dollar terms to $104.4 million in Q4, with an OIBDA margin of 46.9%, and up 5% year-on-year to $220.9 million for the full year with an OIBDA margin of 36.7%
• Adjusted diluted earnings per share up 17% year-on-year to $0.48 in Q4 (2009: $0.41) and up 2% year-on-year to $0.93 for the full year (2009: $0.91)
• Payment of $50.2 million of cash dividends in Q4 and $80.4 million for the full year
• Net cash position ¹ of $177.0 million at year end
• Board of Directors currently intends to pay aggregate cash dividends of $100 million in 2011 and declared a cash dividend of $0.16 per share (or approximately $25 million in the aggregate) to be paid on or about March 31, 2011 to stockholders of record as of March 1, 2011, with further dividends anticipated in the remaining quarters of 2011

OPERATING HIGHLIGHTS

• Combined Russian national inventory fully sold-out for Q4 and 99% sold-out for the full year
• Average national Russian advertising prices up 28% year-on-year in Q4 and 6% for the full year in ruble terms, with regional advertising prices up 27% year-on-year in Q4 and 20% for the full year in ruble terms
• Average full year combined audience share for 3 Russian networks up year-on-year from 15.1% to 15.2% in key "all 18-49" demographic
• Year-on-year increase in year-end technical penetration of CTC, Domashny and DTV networks in Russia to 93.7% (2009: 90.7%), 81.6% (2009: 76.4%), and 72.5% (2009: 68.4%), respectively
• Acquisition of 7 regional television stations in 6 Russian cities
• Launch of CTC-International channel in Israel in June 2010
• Establishment of CTC Media internal advertising sales house 'EvereST-S' in September 2010
• Launch of 'Videomore' online social television network in December 2010

Anton Kudryashov, Chief Executive Officer of CTC Media, commented: "2010 was a record year for CTC Media, with Group revenues already higher in ruble terms than in 2008 before the crisis. Revenues were up 15% year-on-year in ruble terms to $601.3 million for the full year, as we captured the resurgent growth in the Russian TV advertising market. We were fully sold-out in the fourth quarter as advertising prices continued to rise during the year, and quarterly revenues were up 28% year-on-year in ruble terms. Our power ratios have remained stable, and we also generated substantially higher sublicensing and own production revenues.