Second Quarter Highlights [1]

• Net sales up 9% year on year at constant exchange rates and up 3% year on year at reported exchange rates to SEK 3,531 (3,413) million
• Record operating income before associated company income of SEK 593 (575) million, with stable operating margin of 17% (17%)
• Total operating income of SEK 681 (698) million including SEK 88 (123) million of associated company income
• Pre-tax profit of SEK 681 (672) million
• Net income from continuing operations of SEK 479 (501) million
• Total net income of SEK 479 (522) million when including SEK 20 million of net income from CDON Group AB (‘CDON Group’) in the second quarter of 2010
• Basic earnings per share from continuing operations of SEK 6.84 (7.27) and total basic earnings per share of SEK 6.84 (7.58)
• Payment of SEK 498 (363) million annual dividend to shareholders
• Receipt of SEK 84 (30) million (USD 13 million) quarterly dividend payment from associated company CTC Media, Inc. (‘CTC Media’)

Half Year Highlights [1]

• Net sales up 9% year on year at constant exchange rates and up 3% year on year at reported exchange rates to SEK 6,656 (6,467) million
• Operating income before associated company income up 8% year on year to SEK 1,025 (952) million, with stable operating margin of 15% (15%)
• Total operating income up 16% year on year to SEK 1,365 (1,182) million including SEK 341 (229) million of associated company income
• Pre-tax profit up 22% year on year to SEK 1,352 (1,107) million
• Net income from continuing operations up 25% year on year to SEK 969 (776) million
• Total net income up 18% year on year to SEK 969 (822) million when including SEK 45 million of net income from CDON Group in the first half of 2010
• Basic earnings per share from continuing operations up 23% year on year to SEK 14.19 (11.49) and total basic earnings per share up 16% year on year to SEK 14.19 (12.18)
• Receipt of SEK 145 (58) million (USD 23 million) quarterly dividend cash payments from associated company CTC Media

“Hans-Holger Albrecht, President and Chief Executive Officer, commented: “We have delivered another quarter and first half year of record results. The Group generated 9% year on year sales growth at constant exchange rates in both the quarter and for the first six months of the year, with revenues for each of our four broadcasting segments in the Nordic and emerging markets up year on year. The Nordic TV advertising markets have continued to grow but recovery in the emerging advertising markets is still lagging. We have increased our target audience shares quarter on quarter in the majority of our operating territories, which demonstrated the effectiveness of the multi-channel media house model. The Nordic pay-TV platform has added subscribers year on year as our virtual operator model continues to work well and premium satellite ARPU levels rise further, while our pioneering new Viaplay Nordic internet-based video streaming service is gaining momentum. Our emerging market satellite platforms and channel businesses are also developing rapidly.”

“We have delivered higher operating profits excluding associates and stable margins, despite the investments that we have been making in new channels, technologies and platforms. We have also strengthened our content offering further with the acquisition or extension of exclusive agreements for key sports rights and with the Hollywood majors, while at the same time focusing on locally produced programming.”

“Our earnings have been converted into healthy cash flows, which have been used to pay down debt and increase our dividend pay-out. We have a low leverage level and therefore remain in a flexible financial position to invest further in the Group’s existing operations and seek new growth opportunities.”

Conference callThe company will host a conference call today at 15.00 Stockholm local time, 14.00 London local time and 09.00 New York local time. To participate in the conference call, please dial:

Sweden:         +46 (0)8 5051 3786 International:   +44 (0)20 7136 2053 US:                +1 212 444 0481

The access pin code for the conference is 3432864

To listen to the conference call online, please go to www.mtg.se.

For further information, please visit www.mtg.se, or contact:Hans-Holger Albrecht, President & Chief Executive OfficerMathias Hermansson, Chief Financial OfficerTel:+46 (0) 8 562 000 50

Investor & Analyst Enquiries:Jacob Waern / Matthew HooperTel: +46 (0) 736 99 29 91 / +44 (0) 7768 440 414Email: investor.relations@mtg.se

Media Enquiries:Jacob WaernTel: +46 (0) 736 99 29 91Email: press@mtg.se

Modern Times Group is an international entertainment broadcasting group with the largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting operates 28 free-TV channels in 11 countries and 38 pay-TV channels in 32 countries. The pay-TV channels are distributed on Viasat’s own satellite platforms in 9 countries, as well as on third party broadcast networks (including cable, satellite and IPTV) and over the open internet. These free-TV and pay-TV channels and pay-TV platforms attract a total of 125 million viewers in 33 countries. MTG is also the largest shareholder in Russia’s leading independent television broadcaster (CTC Media – Nasdaq: CTCM).

Modern Times Group is a growth company and generated SEK 13.1 billion of sales and SEK 2.4 billion of operating income in 2010. MTG’s Class A and B shares are listed on Nasdaq OMX Stockholm’s Large Cap index under the symbols ‘MTGA’ and ‘MTGB’.

The information in this announcement is that which Modern Times Group MTG AB is required to disclose under the Securities Market Act and/or the Financial Instruments Trading Act. It was released for publication at 13.00 CET on 20 July 2011.

[1] This financial report includes the effects of the demerger and distribution of former MTG subsidiary CDON Group in December 2010. CDON Group’s results have been excluded from MTG’s operating results and cash flows for 2010, with the exception of the reported net income from discontinued operations in the Group’s income statements and the net cash flow to financing activities in the Group’s cash flow statements.