RMG.L Regulatory News (RMG)

1 Nov 2006 07:00

ANNOUNCEMENT BY PROF-MEDIA FOLLOWING ACQUISITION OF RAMBLER MEDIA SHARES Rambler Media Limited ("Rambler Media" or "the Company"), the leading providerof internet and multimedia services to the global Russian-speaking community,notes the following announcement made yesterday by Prof-Media following theacquisition of shares in Rambler Media by PM Invest Company Limited, part ofRussian media group Prof-Media, and Endicott Holdings Limited. "Prof-Media to acquire 54.8% in Rambler Media Limited" "On Monday, October 30, 2006, Prof-Media acquired shares representingapproximately 48.8% in Rambler Media Limited ("Rambler Media" or "the Company"),a leading provider of internet services to the global Russian-speakingcommunity. Prof-Media has also agreed to purchase approximately 6.0% of theissued shares in the Company, subject to the receipt of the approval ofregulatory authorities. Rambler Media is a leading internet-based diversified media entertainment,services and content delivery company. It targets the global Russian-speakingInternet community which is estimated at approximately 300 million people.Rambler is the second most popular Russian based search engine and one of thetop three most popular Internet resources in Russian Internet by traffic andpage views. Rambler Media's main online resource Rambler.ru (www.rambler.ru) has21 million unique monthly visitors, while monthly page views exceed 1.5 billion.Rambler Media's consolidated net sales reached US$16 million for the first sixthmonths ended 30 June 2006 (up nearly 100% period on period) and a net profit ofnearly US$2.5 million. Rambler Media's shares are listed on the AIM market of the London Stock Exchangeand Prof-Media is interested in their healthy trading market and furtherappreciation. Currently, Prof-Media does not envisage any further purchase ofshares in the Company except as described above. Prof-Media believes that the Russian internet has very high growth potential andis particularly optimistic about Rambler Media, a leader in search, socialnetworking, communication services and e-commerce. Rafael Akopov, CEO ofProf-Media, commented: "This transaction is another important step inestablishing Prof-Media as a leading Russian diversified media group with asignificant exposure to new media. Our stake in Rambler Media, which will becomea pure play internet company, is going to be a key element in Prof-Media'son-line strategy. As a strategic investor in Russian media we intend to build onthe impressive achievements of the Company to date and to take it to the nextlevel of development (including M&A), while supporting management continuity andbest corporate governance practices". As reported by Rambler Media last week, Prof-Media has also signed a contract onOctober 24, 2006 for the purchase of "Rambler TV", the TV business of RamblerMedia, from the Company. The transaction is expected to be completed as plannedafter the receipt of regulatory approvals by the end of this year. Renaissance Capital acted as an exclusive financial advisor to Prof-Media on theacquisition of the interest in Rambler Media". \* TFor further information, please visit www.ramblermedia.com or contact: Rambler Media Shared Value LimitedIrina Gofman Nicolas DuperrierTel. +7 495 500 3826 Tel. +44 (0) 20 7321 5010 rambler@sharedvalue.net ING Wholesale BankingDaniel FriedmanTel. +44 (0) 20 7767 1000\* T ABOUT RAMBLER MEDIA Rambler Media is an integrated and diversified Russian language media,entertainment, services and content delivery company which operates variousinternet properties including the leading Russian language internet portal andsearch engine 'rambler.ru', on-line newspaper 'Lenta.ru', broadband ISP 'RamblerTelecom', interactive advertising company 'Index20', and mobile content serviceprovider 'Rambler Mobile'. Rambler Media's shares are traded on the AIM marketof the London Stock Exchange under the symbol 'RMG'. For more information onRambler Media, visit our corporate website at www.ramblermedia.com. Copyright Business Wire 2006