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January 31, 2005 12:05am
Private Launches 24/7 TV & VoD on Broadband
Source: Private Media Group, Inc.
by: Company Press Release

(BARCELONA, SPAIN) -- Private Media Group Inc. (NASDAQ: PRVT) a worldwide leader in premium-quality adult entertainment products, services and Internet content, today announced that it will launch a secure, high-quality TV Channel and Video-On-Demand (VoD) service on a new, state-of-the-art broadband site, PrivateTV.tv.

Through an agreement with Alfa Audiovisuales S.L., the new service, which is powered by proprietary technology, enables broadband subscribers to watch the TV Channel and stream or quickly and easily download full-motion, full-screen, DVD-quality Private titles. Both TV and VoD can be watched on the consumer's TV screen through a simple cable connection.

The new service has unique back-office capability to allow rapid integration with third party networks, giving Private access to additional revenue streams through licensees. The content on offer is competitively priced and payment is securely and discreetly effected by micropayment and credit card. State of the art digital rights management ensures revenue integrity.

The TV Channel will at first be offered in Spanish, with English soon to follow. Additional language options will be implemented, starting with German and eventually including all languages in which Private currently provides content. TV programming will be in six hour blocks including: adult industry news, interviews, behind the scenes, news coverage of special events and financial news coverage of Private and the adult entertainment industry.

The VoD Service offers streaming or downloading of full-motion, full-screen, DVD-quality movies. Downloaded movies are accessible for a period of 48 hours and include the ability to pause, rewind and fast-forward.

The Company is not expecting to incur any significant additional fixed costs or expenses in relation to the service.

Berth Milton, President and CEO of Private Media, commented: "We are very excited about being able to offer consumers our own TV Channel and all of Private's substantial and growing catalogue in a cutting-edge, user friendly, digital format. The immediate availability of content in DVD quality, coupled with discreet and secure methods of payment provides a new level of purchase convenience for customers."

Milton continued: "It is becoming clear that broadband is reshaping the global entertainment market; new entrants are inundating the industry and rattling established players. Content providers such as ourselves are suddenly able to close deals at fair margins with a much wider spectrum of delivery networks. Meanwhile, we are getting closer to the end consumer, which benefits us all."

About Private TV and VoD

The service, which offers an end-to-end solution for the secure, profitable delivery of high quality 24/7 TV and video-on-demand, utilizes a complete delivery management infrastructure and a proprietary digital rights management solution to ensure security. The platform is designed for both direct distribution of content to end consumers and B2B agreements with ISPs and other digital broadband delivery networks. Revenue streams are easily assessed in real-time and the system has unique back-office capability to allow rapid integration with third party networks.

About Broadband According to analysis and forecasts, global broadband subscriptions were estimated to have grown by 50% to 150 million(1) during 2004 and is expected to grow to more than 287 million(2) by 2009.

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 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

Data sources: (1) Point Topic LTDs (UK) World broadband market analysis of 16 December 2004. (2) RHK, Inc's (USA) Annual Forecast published September 2004

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