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March 14, 2003 04:58pm
Private Media Group Launches US DVD Rental Service
Source: Private Media Group Inc.
by: Company Press Release

(BARCELONA, SPAIN) -- Private Media Group Inc. a worldwide leader in premium-quality adult entertainment products, services and Internet content is pleased to announce the successful US launch of its adult DVD rental subscription service, Privateathome.com. The European launch, planned for May, will offer the first-ever pan-European on-line subscription DVD rental service.

The service, available through Privateathome.com, allows customers to select movies over the Internet from Private's award-winning library of DVDs - over 400 existing titles with nine new releases every month. For a flat monthly fee, movies are delivered to consumers by mail in postage-paid return envelopes and can be returned at any time.
With the installed base of DVD players growing from 55.9 million U.S. households this year to 97.6 million in 2007, annual spending on DVD rentals is anticipated to soar from $3.2 billion to $8.4 billion during the next five years, predicts Adams Media Research of Carmel, California. Industry sources have estimated that over 20% of the US DVD rental market is composed of adult titles.

Charles Prast, President and CEO of Private Media Group, said: "The launch of Privateathome.com is a natural progression of our strategy to gain access to the huge retail margins applied to our products. With over one million U.S. consumers subscribing to on-line DVD rental subscription services, coupled with the popularity of adult DVDs, we are not surprised that the U.S. launch of Privateathome.com has been so well received.

"As with our on-line shop, where sales have almost doubled in the last six months�following�technological upgrades, we see this as a perfect market for Private. Since we own all of our content, we can provide an unlimited number of every title so that our subscribers will never have to wait for delivery. As Netflix and other popular services in the U.S. have chosen to remain outside of the adult marketplace, this is a natural opportunity for Private.

"Even more exciting is our planned Europe-wide launch of Privateathome.com in May. In Europe, there are an equal number of DVD households, consumers pay a higher retail price for adult DVDs than in the U.S., and there are no competing subscription services. In addition, while Private is a fast-growing brand in the U.S., it is a household name in Europe. These factors, combined with the convenience, price and discrete nature of this service will help ensure that the European launch will be another successful milestone in for Private. As with our U.S. platform, we conservatively estimate that for every 1,000 annual subscribers, Private will recognise $80,000 in net profit." said Mr. Prast.

About Private Media Group:
Private Media Group is a leading global adult entertainment company that distributes its content over a wide range of media platforms, including narrow and broadband Internet, DVD and video, magazines, broadcasting and wireless technologies. Private owns the worldwide rights to the largest archive of high quality adult content in the world, which it distributes physically in over 35 countries and digitally worldwide. For more information on the company, go to PRVT.com.

This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.

For further information about Private Media Group, please contact:

Norman Bell
Alejandra Moore Mayorga
Phone: + 34 93 590 73 28
+34 91 531 23 88
+34 670 799 335

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