Dividend

CTC Media is a growth company and we are therefore committed to investing in the development and expansion of our operations. We do not have a formal dividend policy but our philosophy is to return an appropriate amount of cash to shareholders when we do not need all of the cash we are generating for investments in the future growth of the business.

In 2010, the CTC Media Board of Directors has announced its intention to pay an aggregate of $40 million in cash dividends. The payment of the first installment of $0.065 per outstanding share of common stock, or $10 million in total, with a record date of March 10, 2010, has been approved by the Board. The Board has also announced its intention to pay the three remaining $10 million installments in each of June, September and December 2010. While it is the Board’s current intention to declare and pay these three future installments, there can be no assurance that such installments will in fact be declared and paid. Any such declaration is at the discretion of the Board and will depend upon factors such as CTC Media’s earnings, financial position and cash requirements.