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The new joint venture to focus on development of digital TV infrastructure

Sofia, April 7, 2010 - After signing an agreement to sell 50% of its broadcasting division - National Unit Radio and TV Systems (NURTS) - VIVACOM (Bulgarian Telecommunications Company AD) has submitted for approval the deal documentation to the Communications Regulatory Commission (CRC).

The national telecom has agreed to sell 50% of NURTS to international financial investor Mancelord Limited.

The new joint venture's main focus will be development of the digital network infrastructure of the company in order to position it as a competitive player on the digital broadcasting market in Bulgaria. NURTS will benefit from the additional financial support to develop innovative solutions for its digital TV infrastructure.

"NURTS needs a financial injection that will help us implement our strategic investment program associated with the introduction of digital television and radio broadcasting. This transaction will help us to turn the company into a nationwide modern multiplex service provider," said Bernard Moscheni, VIVACOM's CEO.

According to the EU requirements all member states must fully cease the analogue broadcasting signal by the end of 2012. Bulgaria is also committed to meet this deadline. In order to fulfill the criteria it is necessary to build infrastructure that makes transmission possible through the new technology.

NURTS is the leading provider of radio and television broadcasting services through its unique network of over 800 strategically located sites covering nearly 100% of the Bulgarian territory. Since 2006 it has been developing in Sofia an experimental DVB-T multiplex for transmission of digital terrestrial television. So far NURTS has been a division within the VIVACOM group. After getting the necessary approvals by the CRC and Competition Protection Commission (CPC), NURTS will become part of a joint venture in which BTC will have 50%.

Mancelord Limited is represented in Bulgaria by Bromak Ltd., majority shareholder in Bulgaria's Corporate Commercial Bank Ltd.

International investment bank Lazard has advised VIVACOM on the deal.

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