CTC MEDIA SIGNS DEFINITIVE SHARE PURCHASE AGREEMENT TO ACQUIRE A PARTICIPATION INTEREST IN CHANNEL 31 GROUP

01.02.2008
Moscow, Russia – February 01, 2008 – CTC Media, Inc. (NASDAQ: CTCM), Russia’s leading independent television broadcaster, announced today that it has signed a definitive share purchase agreement to acquire a 20% participation interest in Channel 31 and majority ownership positions in affiliate companies that will provide the advertising sales function and programming content for Channel 31. Subject to the receipt of applicable regulatory approvals, CTC Media expects the transaction to close in the first quarter of 2008 and to commence broadcasting in the CTC format on Channel 31 later in the same quarter.

As a result of the acquisition, CTC Media will obtain a 60% of the economic interest of the Channel 31 Group which will enable CTC Media to consolidate the financial statements of Channel 31 Group with its own. The purchase price for the acquired interest shall be equal to $65 million payable in cash.

Commenting on the acquisition, Alexander Rodnyansky, Chief Executive Officer of CTC Media, said, “We are pleased with our progress in Kazakhstan and are excited about the opportunity this market presents. In addition to the significant potential for future growth in Kazakhstan's television advertising market, television viewership is remarkably high among young audiences, with viewers younger than 35 years old comprising nearly half of the total television audience in the country. Thus, CTC's focus on younger demographics, together with our programming expertise, provide us with an attractive opportunity to expand the channel’s audience share and deliver highly coveted younger audiences to advertisers. We believe that with our Kazakhstan partners, a prominent team of professionals led by journalist and executive Armanjan Baitasov, we are well positioned to deliver a unique and high quality entertainment offering to Kazakhstan audiences.”

Alexander Rodnyansky further commented, “We continue to view the countries of the former Soviet Uni on as attractive strategic opportunities for CTC Media. We plan to continue to execute on our expansion strategy by extending the reach of our brands to other markets in the region that are poised for robust growth and where Russian content is a proven success with audiences.”

Channel 31 is based in Almaty, Kazakhastan, and has been broadcasting since 1992, with a television network comprising 11 stations, and approximately 60 independent affiliate stations. The channel is currently the fourth largest in Kazakhstan in terms of audience share, which averaged 7.1% in the second half of 2007.

Kazakhstan has a population of more than 15 million people and a fast-growing economy. The country's television advertising market is the third largest among the countries of the former Soviet Union behind Russia and Ukraine.

About CTC Media, Inc.

Based in Moscow, CTC Media, Inc. was formed in 1989 to pursue commercial media and advertising opportunities in Russia. The Company owns and operates the CTC television network, whose signal is carried by more than 350 affiliate stations, including 18 owned-and-operated stations; and the Domashny television network, whose signal is carried by over 220 affiliate stations, including 11 owned-and-operated stations. The Company’s common stock is traded on The NASDAQ Global Sel ect Market under the symbol: “CTCM”. For more information on CTC Media, please visit: www.ctcmedia.ru.


# # #

Contacts:

CTC Media, Inc.
Katya Ostrova (Investor Relations)
+7 495 783 3650
+7 495 785 6333
ir@ctcmedia.ru

Brainerd Communicators, Inc.
Jenna Focarino (media)
Michael Smargiassi (investors)
+1 212 986 6667

Certain statements in this press release that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements, which include, among other things, our ability to execute on our growth strategy, reflect the Company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, risks related to the advertising market in Kazakhstan; our ability to deliver audience share, particularly in primetime, to our advertisers; free-to-air television remaining a significant advertising forum in Kazakhstan; ; and restrictions on foreign involvement in the Kazakhstan television business. Risks related to our business generally are described in the "Risk Factors" section of CTC Media's quarterly report on Form 10-Q filed with the SEC on October 30, 2007. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur.  You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.