Fiscal 2007: ProSiebenSat.1 Group shows strong operational performance with increase in revenue and earnings / Internationalization major strategic step for the Group

Munich, March 4, 2008. The ProSiebenSat.1 Group grew vigorously in fiscal 2007. Based on preliminary figures for 2007, the Groups revenues rose 29.0 percent, to EUR 2.703 billion (2006: EUR 2.095 billion). Growth benefited from the first consolidation of the SBS Broadcasting Group, which ProSiebenSat.1 acquired in July but also from strong growth in the international business and from organic growth in the German-speaking region. EBITDA after adjustment for non-recurring items (recurring EBITDA) was EUR 661.9 million (2006: EUR 485.6 million), up 36.3 percent from the equivalent figure for the prior year. However, a fine imposed by Germanys Federal Cartel Office partly counteracted the positive effects of the SBS consolidation. After allowing for this one-time expense of EUR 120.0 million and other non-recurring items, EBITDA was up 8.0 percent, to EUR 521.3 million (2006: EUR 482.9 million).

2007 was a very successful year for ProSiebenSat.1, not just economically but also strategically. We significantly improved our revenues and earnings. The SBS acquisition internationalized the Group and clearly reduced our dependency on single markets, said ProSiebenSat.1 Media AG CEO Guillaume de Posch. In the current year we will continue to improve our competitive position in Free TV by focusing on content and launching new channels. We will further expand our revenue sources by rolling out our online services across our footprint.

Pro forma calculations for January through December show that the integrated Groups consolidated revenues rose by 4.2 percent in fiscal 2007, to EUR 3.229 billion (2006 pro forma: EUR 3.098 billion). Recurring EBITDA was up 13.2 percent compared to the prior year, to EUR 783.2 million (2006 pro forma: EUR 691.8 million).

Earnings strongly affected by one-off charge; underlying net income climbs vigorously
Operating expenses, consisting of cost of sales, selling expenses and administrative expenses, rose EUR 670.6 million in 2007, to EUR 2.335 billion. The first consolidation of SBS, combined with amortizations related to the SBS purchase price allocation, accounted for EUR 436.1 million of the increase. The total acquisition-based depreciation and amortization recognized in the cost of sales and selling expenses rose EUR 76.2 million, to a total of EUR 82.8 million. Administrative expenses also increased because of a one-off charge of EUR 120.0 million for a non-tax-deductible fine imposed by Germanys Federal Cartel Office.

Higher operating costs and higher interest expenses from the financing for the SBS acquisition widened the negative net financial result from EUR 57.5 million to EUR 135.5 million. Pre-tax profit decreased accordingly by EUR 136.5 million, to EUR 248.8 million. Consolidated net profit after minority interests reached EUR 89.4 million, compared to EUR 240.7 million in fiscal 2006. Adjusted consolidated net profit (underlying net income) rose EUR 28.9 million compared to the prior year, to EUR 272.8 million. This figure excludes the amortizations resulting from the purchase price allocation, and the fine from the Federal Cartel Office.

Financing of SBS transaction affects net financial debt
At December 31, 2007, the Group had net financial debt of EUR 3.328 billion, compared to EUR 121.8 million a year earlier. The primary reason for the increase was the Groups substantially higher financial liabilities resulting from the SBS acquisition.

SBS consolidation and dynamic international market accelerate growth in both units
Revenues in all segments grew compared to the prior year. Revenues for the two segments in advertising-financed Free TV, German-speaking Free TV and Free TV International, totaled EUR 2.304 billion, compared to EUR 1.857 billion in fiscal 2006. The contribution to revenues from the Diversification segment which now also includes radio, print and premium Pay TV activities since the SBS acquisition grew EUR 160.7 million, to EUR 398.8 million. Diversifications share of consolidated revenues was 14.8 percent, compared to 11.4 percent for the prior year (pro forma 2007 figure: 16.9 percent). German-speaking Europe is the Groups largest revenue-generating region, at 80 percent (pro forma 2007: 67 percent), followed by Northern Europe, at 9 percent (pro forma 2007: 15 percent), and the Netherlands and Belgium, at 8 percent (pro forma 2007: 13 percent).

During the third quarter of 2007, there were indications that consumer spending in Germany as the most important parameter for the advertising market would not pick up as expected. Nevertheless, revenues in the German-speaking Free TV segment grew 2.3 percent compared to fiscal 2006, to EUR 1.900 billion. Apart from slack consumer spending, a slowdown in advertising revenues at Sat.1 also held back revenue growth. One-off effects from the EUR 120.0 million fine pulled EBITDA down 19.0 percent, to EUR 346.3 million. But thanks to revenue growth, combined with cost control, recurring EBITDA grew 12.6 percent, to EUR 484.4 million.

The Free TV International segment, which was first consolidated as of July 2007, enjoyed vigorous revenue and earnings growth. Based on pro forma figures for the second half of 2006, the segments revenues for July through December 2007 grew 8.8 percent, to EUR 403.9 million. This dynamic revenue performance most of which came from higher advertising revenues also improved the results of operations further. EBITDA for July through December 2007 grew 18.2 percent, to EUR 109.3 million.

The Diversification segments revenue performance picked up speed in fiscal 2007. A combination of organic growth and a substantial contribution of new revenue from the SBS acquisition pushed segment revenues up 67.5 percent, to EUR 398.8 million. The consolidation of solute, MyVideo and wer-weiss-was.de also strengthened the segment. Despite higher costs, EBITDA also showed strong gains, reaching EUR 65.8 million an 18.3 percent increase.

Outlook: Pan-European Group has very good growth prospects
For the current year, the ProSiebenSat.1 Group again expects revenues and profits to increase. Growth will benefit from the full-year consolidation of SBS and synergies. Although the outlook for the economy is uncertain, the Group sees no signs of downturn. ProSiebenSat.1 Group will focus on strengthening the leading market position of its Free TV channels by increasing its expenditure for programming and making more efficient use of the greater creative resources within the Group. The Group is committed to develop strong original programming and achieve new synergies in international production. The core business Free TV will be additionally strengthened by the launch of new channels. ProSiebenSat.1 will also continue to develop its multi-platform strategy. The Group especially intends to grow on the Internet. Moreover the company expects growth opportunities from internationalizing its new media services, which currently are limited to single markets.

From 2010 onwards, synergies of EUR 80 to 90 million per year have been identified from the integration of ProSiebenSat.1 and SBS two thirds from cost cuts, and one third from revenue increases. The Group expects to realize EUR 40 million of synergies in fiscal 2008. The integration process is running according to plan and will move ahead briskly this year. In all, the Group is confident of making good progress this year with the integration, all initiatives and strategy.

A note on the reporting approach
SBS has been fully consolidated since July 2007. Because SBS was not a part of the ProSiebenSat.1 Group in fiscal 2006, the prior-year figures have not been adjusted in the ProSiebenSat.1 consolidated financial statements. You can find all figures from the preliminary 2007 financial statements of the ProSiebenSat.1 Group on the Internet at www.prosiebensat1.com.



Contact:
Katja Pichler
Corporate spokesperson
D-85774 Unterföhring
Phone: +49 [89] 95 07- 1180
Fax: +49 [89] 95 07- 1184

email: Katja.Pichler@ProSiebenSat1.com

Press release online:
www.ProSiebenSat1.com