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May 27, 2005 12:03am
Private & Playboy Deal Latin America
Source: Private Media/Claxson Interactive, Groups Inc.
by: Company Press Release

(BUENOS AIRES, ARGENTINA/BARCELONA, SPAIN) -- Private Media Group Inc. (NASDAQ: PRVT) and Playboy TV Latin America, a Claxson Interactive Group's affiliate, announced today the signing of an exclusive agreement to operate and distribute Private branded channels throughout Latin America.

Under the terms of the agreement, Playboy TV Latin America will operate and distribute Private branded channels via Claxson's Pay TV distribution network. Claxson's aggregated distribution accounts for 56 million cable and satellite subscribers in the region.

Alejandro Iglesias, General Manager of Playboy TV Latin America said: "I'm pleased that with this strategic initiative we will complete our premium-quality offer of adult content (currently Playboy TV and Venus) with the other leading brand, Private. We see this alliance as an initial step to further expand the adult market, both in the region as well as in other territories. The deal reflects confidence in Playboy TV Latin America and Claxson's expertise, not only in original production of content, but also in distribution. We are delighted with this agreement as it places us in a market position second to none, and the future looks very promising."

Berth Milton, CEO of Private Media Group commented: "Our collaboration with Playboy TV Latin America enables us to increase our broadcasting presence in this important region. Thanks to Playboy TV Latin America's success, and reach of Claxson's vast network, we expect to be able to boost our channels' presence in the region and we are delighted with this opportunity that will certainly have a significant positive impact on our business. This agreement clearly demonstrates that demand for high quality content is key and confirms Private's unique position in the adult broadcast market."

About Playboy TV Latin America LLC

Playboy TV Latin America LLC is a joint venture between Claxson Interactive Group Inc. with 81% and Playboy Entertainment Group Inc. with 19%. It operates a wide range of channels (Playboy TV, Venus, Spice Live), through the strategic development of the adult entertainment business in conjunction with all the regional operators by providing a broad range of quality content, and implementing its strong sales and marketing policy.

About Claxson Interactive Group

Claxson (XSONF.OB) is a multimedia company specialized in the provision and distribution of branded entertainment content to Spanish and Portuguese speaking audiences around the world. The company has a portfolio of well-known branded entertainment options distributed on multiple platforms, including pay TV, radio and Internet. The company's headquarters are located in Buenos Aires and Miami, serving the US as well as major Latin American countries such as Argentina, Mexico, Venezuela, Chile, Brazil, and Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst, Inc.

About Private Media Group

With its 40 year track record, Private 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. It owns the worldwide rights to the largest archive of high quality adult content in the world, which it physically distributes in over 40 countries.

Disclaimer

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 these statements are forward-looking and apply to future events, they are subject to unpredictable circumstances, which could lead to results materially different from those anticipated by the Company.

For further information please contact:

Alejandra Moore Mayorga
Tel: +34 91 531 23 88
AMoore@GrupoAlbion.net
PRVT.com

Juan Iramain
Tel: +54 11 4339 3701
JIramain@Claxson.com
Claxson.com

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