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July 27, 2000 07:00am
Private Welcomes the New Guidelines Recently Published by the British Board of Film Classification
Source: Private Media Group, Inc.
by: Company Press Release

(BARCELONA, Spain) -- Private Media Group, Inc. (Nasdaq: PRVT - news) worldwide leader in premium-quality adult entertainment products, services and Internet content, today welcomed the announcement made by the British Board of Film Classification, BBFC.

The BBFC recently published new Guidelines for the classification of ``R18'' videos, which are available through licensed sex shops. The Guidelines have been revised as a result of a High Court ruling in May against the BBFC. The Board had sought a Judicial Review of a judgement by the Video Appeals Committee upholding an appeal by two distributors against the Board's decision to refuse ``R18'' classification for seven sex videos. Those videos have since been classified ``R18.''

Robin Duval, Director of the BBFC commented:

``The Board has revised its Guidelines in line with the High Court Judgement. We have taken this opportunity to make them clearer and more transparent and to spell out very firmly what is not acceptable as well as what is. There is no question of anything which is illegal being shown, or any material which is likely to encourage an interest in abusive sexual activity. Violent sex continues to be unacceptable and it must be clear that all activity is fully consensual.''

Through Private Media Group's UK distributor, Private products are currently available in 78% of the licensed sex shops in the UK where 55% are actually owned and operated by the UK distribution company itself. The Company is also involved in the broadcasting of the UK soft adult entertainment TV-Channel Private Blue, which recently established itself as the No. 1 channel of its kind in the UK. The Private Blue channel currently has millions of viewers and acts as an excellent promotion vehicle for all Private products. In view of the aforementioned and the great expansion that the market for video material on DVD (Digital Versatile Disc) is currently undergoing in the UK, and the fact that Private Media Group has more than 50 DVD titles available in the marketplace, the Company believes that there is a tremendous potential for DVD sales in the UK.

Berth Milton, CEO of Private Media Group commented: ``The new guidelines confirms a global increasing open-mindedness and acceptance towards sex and adult entertainment, which we believe is healthy.''

Mr. Milton then continued: ``We certainly welcome the new Guidelines and as the leading producer of adult entertainment globally, the revised changes open up a very substantial market for us in the United Kingdom. We have excellent distributors in the UK. However, due to the previous unclear guidelines, our distributors have not been able to perform to their full potential with our products. Therefore, we view these changes as a great opportunity for Private Media to establish itself and its products in this important territory.''

UK DVD hardware and software show rapid growth according to the British Video Association (BVA), DVD Video sales in March accounted for more than 20% of the total video market for the first time. More DVD Videos were sold in the first quarter of 2000 than in the first 11 months of 1999. While the 15m pounds sterling ($23m) worth of sales in March represents a 440% growth on March 1999, the latest monthly rise in hardware sales is even more impressive -- up by 651%, taking total sales of DVD players in the UK to 350,000 units. The BVA reckons that currently 30,000 people a month buy a DVD player and this figure is accelerating with time.

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.

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 judgements 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: 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.

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