Private Media Group (PRVT)

The Private Gold and Private Spice Channels

The Private Gold channel was launched in Europe under an exclusive joint venture agreement with IFPD. As mentioned above, the Company acquired the channel name Private Gold, and continued licensing it to an affiliate company of IFPD for a fixed fee. By the end of 2005, Private Gold had become the leading Adult Pay-TV channel in Europe and was distributed via satellite and cable in 25 countries in the region. In November 2005 the agreement with IFPD expired and the Company and Playboy TV International signed a five-year agreement to merge their two adult pay-TV channels, Private Gold and Spice Platinum, and thereby consolidating their market leadership in Europe. The new channel is called Private Spice and under the terms of the agreement, Playboy TV International is operating, distributing and marketing the new channel and Private provides content, brand and marketing support. Prior to the merging of the two channels, Spice Platinum has rapidly become one of Europe’s most sought after and fastest growing premium adult networks reaching in over 15 countries. The new channel makes available unique and proprietary quality content, offering flexible language tailoring and market localization and platforms are be able to offer their viewers a unique channel developed and serviced by the world’s leading adult television brands, while ensuring professional reliability and continuity.

The Private Gold was launched in Latin America in 2001, via the joint venture agreement with IFPD, and under a distribution agreement with Pramer S.C.A. Until recently, the Company held this agreement directly with Pramer. In May 2005, the Company and Playboy TV Latin America, signed an exclusive agreement to operate and distribute Private branded channel throughout Latin America. Under the terms of the agreement, Playboy TV Latin America, a Claxson Interactive Group affiliate, is operating and distributing the channel via Claxson’s Pay TV distribution network. Claxson’s aggregated distribution accounts for 56 million cable and satellite subscribers in the region.