CTC MEDIA CREATES UNITED PRODUCTION COMPANY STORY FIRST PRODUCTION

28.07.2011

Moscow, Russia – July 28, 2011– CTC Media, Inc. (“CTC Media” or “the Company”) (NASDAQ: CTCM), Russia’s leading independent media company, announces the establishment of a new united content production company Story First Production, under which the Costafilm and Soho Media platforms will subsequently be merged into a single subsidiary. Vasily Balashov has been appointed General Director of the newly established company and he has also joined CTC Media’s Executive Management Committee as Chief Production Officer.



Moscow, Russia – July 28, 2011– CTC Media, Inc. (“CTC Media” or “the Company”) (NASDAQ: CTCM), Russia’s leading independent media company, announces the establishment of a new united content production company Story First Production, under which the Costafilm and Soho Media platforms will subsequently be merged into a single subsidiary. Vasily Balashov has been appointed General Director of the newly established company and he has also joined CTC Media’s Executive Management Committee as Chief Production Officer.

Mr. Balashov’s responsibilities include the creation of an in-house content development center that will enhance and expand CTC Media’s own production capabilities and increase the volume of high-quality in-house content on CTC Media’s programming grids. The Company also plans to strengthen its creative team by attracting new creative producers, script writers, editors, who will develop and promote original in-house productions.

The Professional teams of CTC Media’s existing in-house production companies will lead Story First Production. The restructuring process does not therefore imply there will be any major personnel changes and all the key members of the production companies’ management will continue to work at CTC Media. Konstantin Kikichev, Head of Costafilm, will be appointed as General Producer of Story First Production, while Irina Kalinina, Head of Soho Media, will be appointed as Director of TV Programs Production.

Anton Kudryashov, Chief Executive Officer of CTC Media, commented: “We have taken the decision to reorganize our production process with the aim of making it more efficient, to increase the volume of internally produced content and implement a more advanced control system at each stage of the production process. We have decided to not drift far fr om CTC Media’s founding principles and its original name ‘Story First Communications’, which was ahead of its time in many ways and became the embodiment of all that was progressive and innovative in our media space. Vasily Balashov has been involved in the creation of a variety of successful television series and motion pictures, both in Russia and abroad. We greatly appreciate Vasily’s international experience as well as his ability to apply this experience to our business.”

Vasily Balashov, General Director of Story First Production, commented: “I am very pleased to join CTC Media and I look forward to proving my worth. We have some very exciting tasks to undertake and the dynamic and creative atmosphere within the Company is very attractive. I am confident that together we will succeed!”

Vasily Balashov

Vasily Balashov, 35, joined CTC Media as Chief Production Officer in June 2011 and was appointed General Director of Story First Production in July 2011. Prior to that Vasily served as Production Director in Walt Disney Company CIS where he worked since 2008. Between 2006 and 2008, Vasily worked in “Park Production” where he produced commercial TV clips for some of the largest global brands. In 2004 Mr. Balashov worked on the Russian series “Kholostyaki (Bachelors)” and the Polish movie “The Aryan Couple”. Prior to that, Mr. Balashov worked as line producer for a movie company called “Slovo” wh ere he worked on Russian series “Diversionist”. Between 1997 and 2003, Mr. Balashov held various positions from line producer, crew chief and deputy crew chief. He also worked on Russia channel as a manager in the film production department. Mr. Balashov graduated from the Russian Federation State Institute of Cinematography.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia, with operations throughout Russia and elsewhere in the CIS. It operates three free-to-air television networks in Russia – CTC, Domashny and DTV – as well as Channel 31 in Kazakhstan and TV company in Moldova, with a combined potential audience of over 150 million people. The international pay-TV version of the CTC channel is available in North America, Israel and Germany. CTC Media also has its own TV content production capabilities through its subsidiary Story First Production. 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.

For further information, please visit www.ctcmedia.ru or contact:

CTC Media, Inc.
Investor Relations

Ekaterina Ostrova
Tel: +7 495 783 3650

or Irina Klimova
Tel: +7 495 981 0740

ir@ctcmedia.ru

Media Relations

Victoria Bakaeva
Tel: +7 495 785 6347, ext 1210

or Anna Zvereva
Tel: +7 495 785 6347, ext 1212

pr@ctcmedia.ru

Caution Concerning Forward Looking Statements

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 include, among others, statements regarding assumed merger of Soho and Costa into a single subsidiary, creation of an in-house content development center, our ability to enhance and expand CTC Media’s own production capabilities, ability to increase the volume of high-quality in-house content on CTC Media’s programming grids, our ability to attract new creative producers, script writers, editors as well as ability to introduce advanced control system at each stage of the production process and etc.. These statements 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 fr om those expressed by forward-looking statements include, among others, the implementation of the Company’s own internal sales house structure; depreciation of the value of the Russian ruble compared to the US dollar; changes in the size of the Russian television advertising market; the Company’s ability to deliver audience share, particularly in primetime, to its advertisers; free-to-air television remaining a significant advertising forum in Russia; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's 2010 annual report on Form 10-K filed with the SEC on March 1, 2011 and quarterly report for the first quarter 2011 on Form 10Q filed with the SEC on May 5, 2011.

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.