(BARCELONA, Spain) -- Private Media Group Inc. (Nasdaq: PRVT - news), worldwide leader in premium-quality adult entertainment products, services and Internet content, today announced that, in what may be seen as a landmark test case, the UK High Court has ruled that explicit adult videos could be legally sold in the UK for the first time.

To date, Private Media Group Inc. has had to produce special 'soft' adult videos just for the UK market. The Company also has two magazine licensing deals operating in the UK, its Private Dynamite drink is widely distributed there, and its Private Circle range of urban fashionwear is in the process of building its distribution network following favorable publicity. Private Media Group also has had a substantial media presence in the UK over the last two years, being featured in a number of high-profile documentaries on the adult industry by mass-market television stations like Channel 4, BBC and Channel 5. The Company's presence in this territory has recently been boosted still further by the recent launch of its Private Blue television channel in the UK which is available on the BSkyB network. Private Media Group Inc. is also in discussions about a possible listing on the UK stock market.

In a decision widely reported in the UK media yesterday, The British Board of Film Classification attempted to challenge its own Video Appeals Committee's decision to approve the availability of seven explicit adult videos. According to a report in The Times newspaper, ``Mr. Justice Hooper (of the High Court) ruled that seven videos showing real rather than simulated sex scenes could be made available to licensed sex shops.''

The Times also reported that the UK Home Office (Government Department) said that Home Secretary, Mr. Jack Straw, was ``very disappointed'' by the decision.

``Obviously, it's a breakthrough,'' said CEO of Private Media Group, Berth Milton. ``While the UK laws to date have been out of step with most of the world, we know from our own presence there that our 'soft' videos and magazines are in great demand, as is our flagship website, www. private.com. Up to now, the government, customs authorities and film censors in the UK have had one attitude while the general public seems to have another. With the advent of global communications, and particularly the internet, adult material is widely accessible to responsible adults, either as individuals and couples. We are studying this decision, which relates specifically to video availability, and we are optimistic that a more 'worldly' official view will now prevail following the UK High Court's decision. In practical terms, it would mean that we would not have to produce special videos just for the UK market and it would, therefore, eliminate the extra costs of producing such special videos and expand our distribution network in the UK to licensed adult shops.''

The leading publicly-quoted adult entertainment company in the world, Private Media Group Inc., is the founder of the globally established brand name 'Private' and has positioned itself in the marketplace with a visionary management strategy that combines both New Economy (Internet, multimedia, e-commerce) and Old Economy (videos, magazines) business models. Maintaining a total adult lifestyle philosophy, this is reflected in the Company's broad range of products and services, both proprietary and licensed, and its strategic policies of development, diversification and acquisition.

For more information, visit the Company's corporate Web site at www. prvt.com

Other companies in the adult industry include Playboy Enterprises Inc. and New Frontier Media.

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.

CONTACTS: In Barcelona, Spain: Johan Gillborg of Private Media Group Inc., +34-93-590-7070, johan@milcap.es; or In London, England: Adam Reynolds of Hansard Communications.Com, +44-207-840-7782, adam.hansard@clsholdings.com