CTC MEDIA REPORTS SECOND QUARTER 2006 FINANCIAL RESULTS

CTC Media, Inc. (NASDAQ: CTCM), a leading television broadcaster in
Russia, today reported financial results for the three- and six-month periods ended June 30, 2006.

*OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). OIBDA is a non-GAAP financial measure. Please refer to Attachment A for a reconciliation of OIBDA to net income.

Financial Highlights

· Record quarterly and six-month results across all key financial metrics
· Consolidated revenue increased 83% to $102.8 million in the second quarter and 84% to $182.0 in the first six months of 2006
· OIBDA increased 106% to $54.4 million and 110% to 91.2 million in the three- and six-month periods ended June 30, 2006
· Net income increased 134% to $34.1 million in the second quarter and 152% to $56.8 million in the first six months of 2006
· $0.23 and $0.38 fully diluted earnings per share for the three- and six-month periods ended June 30, 2006, an increase of 156% and 171%, respectively

Corporate Highlights

· Successful IPO on NASDAQ in June 2006, raising net proceeds of $105 million
· Combined audience share for the second quarter of 2006 rose to 13%, driven by exceptional programming performance at CTC Network
· Added three owned-and-operated stations in key local regions

Alexander Rodnyansky, Chief Executive Officer, stated, “During the second quarter we continued to demonstrate strong operating and financial momentum as the investments we have made in our operations continue to generate tangible returns. Capitalizing on the growth of advertising spending in Russia and our success in building audience shares among our target demographics, we continue to post revenue growth well ahead of the Russian television advertising market. Further, as a result of our disciplined approach to managing costs, we have been able to convert an increasing amount of our revenue into profits.”

“With the successful completion of our IPO in June, we raised net proceeds of $105 million, which further strengthens our ability to aggressively pursue our strategy and fully participate in the growth of our industry. As we seek to build on our presence in the region, we are committed to generating profitable growth and maintaining a healthy balance sheet. We are well positioned to execute on our growth initiatives and build value for our shareholders over the long term.”

Results for the Three Months Ended June 30, 2006

CTC Media’s total operating revenue for the three months ended June 30, 2006, increased 83.2% to $102.8 million fr om $56.1 million for the three months ended June 30, 2005. The revenue growth reflects the continued growth of the Russian television advertising market and CTC’s ability to deliver to advertisers their target audiences.

CTC Media’s combined audience share increased to 13.0% in the second quarter of 2006 compared to 11.5% in the second quarter of 2005. The CTC Network increased its total audience share to 11.7% for the second quarter of 2006, up from 10.3% in last year’s second quarter, and remained the fourth most watched broadcaster in Russia overall. Domashny’s audience share grew from 1.2% for the three months ended June 30, 2005, to 1.3% for the three months ended June 30, 2006. The increase in CTC’s audience share was mainly driven by the success of the Born Not Pretty series. The series has been the CTC Network’s most successful program in its broadcasting history, generating an average overall primetime audience share of 30,9% in the three months ended June 30, 2006. Although CTC Media continuously seeks to acquire and commission high quality programming, the Company does not expect that it will be able to replace Born Not Pretty with programming that will be as successful as this series was. Consequently, the Company does not believe that the rate of growth in its advertising revenues for the three- and six-month periods ended June 30, 2006, as compared to the same periods in 2005, is indicative of its future financial performance.

Consolidated total operating expenses in the second quarter of 2006 amounted to $53.5 million compared to $33.3 million in the second quarter of 2005. The increase in total operating expenses in absolute terms was primarily driven by an increase in programming amortization expense, which in turn was driven by increases in the cost of programming, and increases in selling, general and administrative costs. Total operating expenses as a percentage of revenues decreased from 59.4% reported in the second quarter of 2005 to 52.1% in the second quarter of 2006.

OIBDA increased 106% to $54.4 million for the second quarter of 2006 compared to $26.4 million in the second quarter of 2005. The OIBDA margin improved from 47.1% to 52.9% over the same period.

Operating income for the quarter was $49.2 million compared with $22.8 million for the three months ended June 30, 2005, an increase of 116.2%. Operating income as a percentage of total operating revenue grew from 40.6% in the second quarter of 2005 to 47.9% in the second quarter of 2006.

Net income for the quarter was $34.1 million compared to $14.6 million for the three months ended June 30, 2005. Fully diluted income per share was $0.23 for the three months ended June 30, 2006, compared to $0.09 for the three months ended June 30, 2005.

Results for the Six Months Ended June 30, 2006

CTC Media’s total operating revenue for the six months ended June 30, 2006, increased by 83.5% to $182.0 million from $99.2 million for the six months ended June 30, 2005.

Consolidated total operating expenses for the first six months of 2006 increased by 58.9% to $99.7 million compared to $62.7 million for the first six months of 2005. Total operating expenses as a percentage of revenues decreased from 63.3% for the first six months of 2005 to 54.8% for the first six months of 2006.

OIBDA increased 110.5% to $91.2 million for the first six months of 2006 compared to $43.3 million for the first six months of 2005. OIBDA margin for the six-month period increased from 43.7% in 2005 to 50.1% in 2006.

Operating income for the first six months of 2006 was $82.3 million compared with $36.4 million for the first six months of 2005, an increase of 125.8%. Operating income as a percentage of total operating revenue grew from 36.7% for the first six months of 2005 to 45.2% for the first six months of 2006.

Net income for the six months ended June 30, 2006 was $56.8 million compared to $22.5 million for the six months ended June 30, 2005. Fully diluted income per share was $0.38 for the six months ended June 30, 2006, compared to $0.14 for the six months ended June 30, 2005.

Guidance

For the full year ending December 31, 2006, the Company currently expects to generate consolidated total operating revenue in the range of $360 to $385 million, with a consolidated OIBDA margin in the range of 46-47%.

Conference Call

The Company will also host a conference call to discuss its second quarter 2006 financial results today, Monday, July 31, at 9 a.m. ET, corresponding to 5 p.m. Moscow time. To access the conference call, please dial +1 973 582 2843 (International) or 8108 002 531 1012 (Russia) and reference pass code 7628004. A live webcast of the conference call will also be available on the investor relations portion of the Company's corporate web site, located at www.ctcmedia.ru. A replay of the conference call will be available through Monday, August 14, 2006, at midnight ET. The replay can be accessed by dialing +1 973 341 3080. The pass code for the replay is 7628004. The webcast will also be archived on the Company’s web site for two weeks.

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, which reaches approximately 100 million people through over 310 affiliate stations, including 17 owned-and-operated stations; and the Domashny television network, which reaches approximately 57 million people through over 170 affiliate stations, including six owned-and-operated stations. The Company is traded on The Nasdaq National Market under the symbol: CTCM. For more information on CTC Media, please visit: www.ctcmedia.ru.

Contacts:

CTC Media, Inc.
Dmitry Barsukov
Irina Osadchaya
+ 7 495 783 3650

Brainerd Communicators, Inc.
Jenna Focarino (media)
Michael Smargiassi or Todd St.Onge (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, guidance on our projected total operating revenues and OIBDA margin for the year ending December 31, 2006 and 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 recently adopted changes in Russian advertising laws; changes in the size of the Russian television advertising market; our ability to deliver audience share, particularly in primetime, to our advertisers; free-to-air television remaining a significant advertising forum in Russia; our reliance on a single television advertising sales house for substantially all of our revenues; 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 final prospectus dated May 31, 2006 and filed with the SEC on June 1, 2006. 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.

(See attached financial statements)

Attachment A

OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). The Company believes that this metric is an appropriate and useful measure for evaluating the core current operating performance of its business. This metric is used by management to further its understanding of the Company’s operating performance in the ordinary, ongoing and customary course of operations. The Company also believes that it provides investors and equity analysts with a useful basis for analyzing operating performance against historical data and the results of comparable companies.

The most directly comparable GAAP measure to the non-GAAP measure of OIBDA is net income. Unlike net income, OIBDA excludes depreciation and amortization, other than amortization of programming rights and sublicensing rights. The purchase of programming rights is the Company’s most significant expenditure that enables it to generate revenues and OIBDA includes the impact of the amortization of these rights. Expenditures for capital items such as property, plant and equipment have a materially less significant impact on the Company’s ability to generate revenues. For this reason, the Company excludes the related depreciation expense for these items from OIBDA. Moreover, a significant portion of its intangible assets were acquired in business acquisitions. The amortization of intangible assets is therefore also excluded from OIBDA.

OIBDA also excludes other components of net income that the Company does not consider to be indicators of its core operating performance. Accordingly, it excludes from core operating performance certain items over which it does not have substantial managerial influence and that are not reflective of ordinary, ongoing and customary course activities. Such non-core items include foreign currency gains and losses, interest income and expense, gains on the sale of businesses, other non-operating gains and losses, equity in the income of investee companies that the Company does not control, income tax expense, and income attributable to minority interest shareholders.

Because OIBDA is not a GAAP measurement of financial performance, there are material lim itations in its usefulness on a stand-alone basis, including the lack of comparability to the GAAP financial results of other companies. It should be considered in addition to, and not as a substitute for, net income. The items excluded from OIBDA are significant components in assessing our overall financial performance.

The following table presents a reconciliation of the Company's consolidated OIBDA to consolidated net income for the three- and six-month periods to June 30, 2005 and 2006:

In this press release, the Company provides guidance on the Company's consolidated OIBDA for the year ending December 31, 2006. The following table presents a reconciliation of the Company's projected OIBDA, based on the mid-point of the provided range, to projected operating income for the year ending December 31, 2006. To further reconcile operating income to net income, foreign currency gains (losses), interest income, interest expense, gains (losses) on the sale of businesses, other non-operating gains (losses), equity in income of investee companies, income tax expense and income attributable to minority interest would need to be added and/or subtracted, as appropriate, from operating income. The Company does not provide a quantitative reconciliation of projected consolidated OIBDA to projected consolidated net income because it believes that such a reconciliation is not available without unreasonable efforts.

Attachment B