(BARCELONA, SPAIN) -- Private Media Group, Inc.(NASDAQ Nm: PRVT) a worldwide leader in premium-quality adult entertainment products, services and Internet content, announced significant expansion of the company's licensing initiative with the creation of Private Centers, a new erotic retail experience, directed at men and women.

The company has signed an agreement with a leading Travel Retail operator that will see the opening of a Private Center in the new landside Airport Shopping Centre at Zurich International Airport. The store, which is scheduled for opening in early December, is the latest development in Private Media Group's licensing initiative.

The opening of Private Media Group's first dedicated Private Center - also marks a major step in Private's already successful travel retail project, which, in less than one year has seen the brand establish a dedicated presence in airside retail outlets at Amsterdam Schiphol Airport, Brussels International Airport, Copenhagen's Kastrup Airport, Vienna International Airport and Zurich Airport, as well eight of Stena Line's North Sea ferries. Sales at these outlets are showing impressive growth. Since the start in Vienna its overall adult DVD sales volume has increased 100%. The increase was derived from replacing products taken from a big selection of many different adult brands with Private products only. The evolution of sales in Vienna proves that focusing on content quality and brand name is more important than diversity.

The initiative has attracted considerable media attention within the Travel Retail trade press and Private will be promoting the venture to the Travel Retail industry at the Tax Free World Association (TFWA) Exhibition in Cannes in October.

Berth Milton, Private's Chairman and CEO commented: "Our initial experience in Travel Retail has shown us that both male and female consumers are ready for a new experience in erotic lifestyle retailing - smart, classy, and sexy are the attributes which set off Private's very professional concept. The potential for the market has been clearly demonstrated and we expect the flagship store in Zurich to open the way for Private Centers in travel retail and other urban locations. With Private Centers we will bridge the gap between traditional adult and mainstream lifestyle retail, offering a new shopping experience in an environment that puts the high-end, sophisticated consumer at ease."

Through its Licensing Division, Private is offering a unique opportunity for adult specialist and other retailers to buy into the Private brand through licensing agreements to either upgrade their existing retail points of sale or develop new outlets in order to satisfy the increasingly sophisticated and broad demands of adult consumers. The product range on offer will span from traditional adult to lifestyle Private-branded products, ranging from lingerie to wine selections. The Private brand, valued by consumers and retailers alike thanks to its enduring focus on quality and innovation, thereby continues to meet new consumer demands, in both niche markets and broader sectors, such as the ever increasing number of female customers.

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.

About Private Centers

The Private Center concept has taken adult media to new levels. The focus is on developing exclusive branded products to enhance existing product ranges. The Centers will be a platform to launch exclusive loyalty programmes for VIP customers, they will also serve as focal points for newsletters and events. The Centers will be the ideal venues for launches and special edition releases. In essence, Private will be a top of the range brand in its field which will feature alongside other leading "High Street brands" and will be used in cross-selling and joint marketing programmes.

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 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 please contact

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