CTC Media: Financial Results for the Fourth Quarter and Full Year Ended December 31, 2009

By Ctc Media Inc, PRNE
Thursday, February 25, 2010

MOSCOW, February 26, 2010 - CTC Media, Inc. ("CTC Media" or "the Company") (NASDAQ: CTCM), Russia's
leading independent media company, today announced its unaudited consolidated
financial results for the fourth quarter and twelve months ended
December 31, 2009.

                          Three Months            Twelve Months
                      Ended December 31,        Ended December 31,
    (US$ 000's except   2008      2009   Change  2008       2009    Change
    per share data)

    Total operating
     revenues        $187,349  $180,507   -3.7%  $640,171  $506,113   -20.9%

    Total operating
     expenses (before
     non-recurring
     items)[1]        (94,636)  (96,460)   1.9%  (373,307) (306,311)  -17.9%

    Total operating
     expenses        (327,319) (143,787) -56.1%  (605,990) (353,638)  -41.6%

    Adjusted OIBDA
     [2],[3]           96,539    87,382   -9.5%   280,244   211,256   -24.6%
    Adjusted OIBDA
     margin [2,3]        51.5%     48.4%             43.8%     41.7%

    OIBDA [2]        (136,144)   40,055  129.4%    47,560   163,929   244.7%
    OIBDA margin[2]     (72.7%)    22.2%              7.4%     32.4%

    Adjusted net
     income
     attributable
     to CTC Media, Inc.
     stockholders [3]  64,637    64,466   -0.3%   176,134   143,967   -18.3%
    Adjusted diluted
     earnings per
     share [3]          $0.41     $0.41      -      $1.11     $0.91   -18.0%

    Net income/(loss)
     attributable to
     CTC Media, Inc.
     stockholders     (89,042)   20,887  123.5%    22,454   100,389   347.1%

    Diluted earnings
     per share         ($0.56)    $0.13  123.2%     $0.14     $0.64   355.4%
    FINANCIAL HIGHLIGHTS

    - Total revenues up 4% year-on-year in ruble terms in the fourth quarter
      and down 1% for the full year

    - Russian advertising revenues up 2% year-on-year in ruble terms in the
      fourth quarter and down 3% for the full year

    - Organic operating expenses[4] up 13% year-on-year in ruble terms in the
      fourth quarter and flat for the full year

    - Adjusted OIBDA of $87.4 million with an adjusted OIBDA margin of 48.4%
      in the fourth quarter, and $211.3 million with an adjusted OIBDA margin
      of 41.7% for the full year

    - Net cash position of $95.2 million at year-end

    - Increase in national television advertising market share in Russia
      year-on-year to 19.5% from 17.5% for the full year

    - Board of Directors approved $0.065 per share cash dividend (or $10
      million in the aggregate) to be paid in March 2010, as first installment
      of an intended total of $40 million in cash dividends to be paid in 2010

    OPERATING HIGHLIGHTS

    - Average full year combined 4+ audience share for the three networks in
      Russia up year-on-year to 13.2% from 13.0%

    - Average full year target audience shares up year-on-year for all three
      Russian networks with highest ever shares for Domashny and DTV

    - Acquisition of 8 regional stations in 6 Russian cities

    - Year-on-year increases in technical penetration of CTC,
      Domashny and DTV networks in Russia to 90.7% (from 87.5% in 2008),
      76.4% (from 71.0% in 2008), and 68.4% (from 61.0% in 2008),
      respectively

    - Launch of CTC international channel in North America in December 2009

Anton Kudryashov, Chief Executive Officer of CTC Media,
commented: "We outperformed the Russian TV advertising market throughout 2009
and further increased our audience and advertising market shares. Our Russian
advertising revenues were up 2% year-on-year in ruble terms in the fourth
quarter and down only 3% for the full year, despite the impact of the
economic recession on advertising budgets. This compares with an estimated
12% decline for the Russian TV advertising market in the fourth quarter and
an 18% decline for the full year. We also managed to keep our underlying
organic operating cost base flat year-on-year in ruble terms for the full
year while, at the same time, raising the technical penetration and target
audience shares of all three of our Russian networks. This efficient cost
control enabled us to deliver underlying OIBDA margins of 48% in the quarter
and 42% for the full year, when excluding non-recurring items."

"Approximately 85% of our forecast full year 2010 Russian
national inventory has now already been booked under forward contracts at
approximately the same average prices as in 2009. The pricing environment is
currently showing signs of improvement moving forward for later in the year
and, while we do not expect to repeat the level of market outperformance that
we achieved in 2009, our target audience shares have continued to grow so far
in 2010. As indicated previously, we are also now substantially increasing
our investments in the programming schedules and network coverage of our DTV
and Domashny channels, in order to unlock their considerable future
development potential."

"We are a growth company and are therefore committed to
investing in the development and expansion of our operations. The cash
dividend declared by our Board demonstrates our philosophy to return an
appropriate amount of cash to shareholders when we do not need all of the
cash we are generating for investments in the future growth of the business."

    Operating Review

    Revenues[5]

                        Three Months                Twelve Months
                     Ended December 31,          Ended December 31,
     (US$ 000's)       2008      2009    Change    2008     2009    Change

     Operating revenues:
     CTC Network     $ 115,547  $115,388  -0.1%  $412,614  $326,006  -21.0%
     Domashny Network   19,166    18,676  -2.6%    64,142    50,648  -21.0%
     DTV Network        13,463    13,265  -1.5%    35,868    40,550   13.1%
     CTC Television
      Station Group     27,669    24,342 -12.0%    95,033    64,014  -32.6%
     Domashny
     Television
      Station Group      4,655     3,150 -32.3%    16,003     8,810  -44.9%
     DTV Station
      Television Group   1,734     1,276 -26.4%     5,069     3,858  -23.9%
     CIS Group           4,950     3,727 -24.7%    10,930    11,020    0.8%
     Production Group      164       682 315.9%       512     1,207  135.7%
     Total operating
      revenues        $187,349  $180,507   -3.7% $640,171  $506,113  -20.9%

Total operating revenues were down 4% year-on-year in the fourth quarter
and 21% for the full year in US dollar terms, which reflected the
year-on-year decline in the advertising markets, as well as the weakening of
the Company's principal operating currency (the Russian ruble) against its US
dollar reporting currency. This depreciation had a negative impact of
approximately 8% on the Company's ruble-denominated sales in the fourth
quarter and 21% for the full year 2009. In ruble terms, total operating
revenues were up 4% year-on-year in the quarter and were approximately flat
for the full year. 2009 results include full year contributions from DTV
Group in Russia and Channel 31 Group in Kazakhstan for the first time,
following the acquisition of both businesses during the first half of 2008.

CTC Media's Russian advertising sales accounted for 94% of fourth quarter
and full year 2009 revenues and were up 2% year-on-year in the quarter and
down only 3% for the full year in ruble terms. This compared with an
estimated 12% year-on-year decline in the Russian TV advertising market in
the fourth quarter and an 18% decline for the full year, according to Video
International. The Company reported increased target audience viewing shares
and advertising market shares both in the quarter and for the full year.

The CIS Group, which accounted for 2% of full year revenues,
reported a 25% year-on-year decline in sales in the fourth quarter but 1%
growth for the full year. This reflected the mixed impact of higher
advertising rates and sellout ratios, lower audience shares, the year-on-year
depreciation of the Kazakh tenge against the US dollar, and the fact that
Channel 31 in Kazakhstan was acquired and consolidated only from the first
quarter of 2008. Channel 31 generated over 90% of CIS Group revenues in the
quarter and for the full year.

    Share of Viewing in Target Demographics

                                 Average Audience Shares (%)
                      Q4 2008  Q3 2009  Q4 2009  FY 2008   FY 2009

    CTC Network
     (all 6-54)        12.3      12.2    12.7      11.8      12.2
    Domashny Network
     (women 25-60)      2.7       3.2     2.9       2.8       2.9
    DTV Network
     (all 25-54)        2.3       2.3     2.1       2.1       2.2
    Channel 31
     (all 6-54)        16.6      11.6    10.4      13.4      11.6

Each of the Russian networks delivered higher average target
audience shares for the full year 2009 than in 2008, primarily reflecting
further improvements in programming performance.

The flagship CTC Network's average target audience share was
up year-on-year and quarter-on-quarter, and the 13.5% average target audience
share for November 2009 was the highest monthly average achieved since June
2006
. Major audience share drivers in the fourth quarter included new seasons
of the 'Daddy's Girls' comedy series, as well as the premiers of 'Margosha',
which is based on the Argentine 'LaLola' format, and the 'Voroniny' comedy
series, which is based on hit U.S. format 'Everybody Loves Raymond'.

Domashny's target audience share was also up year-on-year in
the fourth quarter and for the full year following the continued success of
long-running series such as 'Atlantida' and 'Desperate Housewives', which
were supported by a high-rating line-up of movies and documentaries. New
locally produced comedy sketch show 'One for All' was launched in November
2009
and attracted solid viewing shares in its key access prime-time weekday
slot.

The DTV channel has been focused on the 25-54 year-old target
audience group since January 2009, and its average share of viewing in this
target group grew on a full-year basis following the success of the locally
produced 'Marital Fiction' show and the late prime-time slots for Russian and
foreign criminal investigation and action series.

The decline in Channel 31's audience share was primarily due
to changes in the TNS audience measurement panel and the introduction of
stricter local language programming requirements. Channel 31 did however
maintain its position as the second-most watched channel in Kazakhstan in its
target demographic, "all 6-54".

    Expenses

                       Three Months            Twelve Months
                    Ended December 31,       Ended December 31,
    (US$ 000's)       2008    2009    Change   2008      2009    Change

    Operating expenses:
    Direct operating
     expenses        $10,206 $14,574   42.8%  $37,514  $37,422  -0.2%
    Adjusted selling
     general &
     administrative
     expenses[6]      22,951  19,276  -16.0%   93,414   72,211  -22.7%
    Amortization
     of programming
     rights           56,327  57,514    2.1%  220,557  178,392  -19.1%
    Amortization
     of sublicensing
     rights and own
     production cost   1,326   1,761   32.8%    8,443    6,832  -19.1%
    Depreciation &
     amortization      3,826   3,335  -12.8%   13,380   11,454  -14.4%
    Total operating
     expenses (before
     non-recurring
     items)          $94,636 $94,460    1.9% $373,307 $306,311  -17.9%
    Stock-based
     compensation
     expense related
     to settlement of
     litigation
     against former
     CEO                   - $28,588                -  $28,588
    Intangible asset
     impairment
     charge         $232,683 $18,739  -91.9% $232,683  $18,739  -91.9%
    Total operating
     expenses       $327,319 143,787  -56.1% $605,990  353,638  -41.6%

Total operating expenses, before non-recurring items, were up 2%
year-on-year in the fourth quarter in US dollar terms and up 10% for the same
period in Russian ruble terms, which primarily reflected the year-on-year
increase in programming amortization costs and direct operating expenses.
Total operating expenses, before non-recurring items, were down 18%
year-on-year for the full year in US dollar terms but up 4% in Russian ruble
terms, which reflected the year-on-year depreciation of the Russian ruble and
Kazakh tenge, the Company's principal operating currencies, against the US
dollar reporting currency.

Organic operating expenses were up 13% year-on-year in ruble terms for
the fourth quarter and flat for the full year. The increase in organic
operating expenses in the fourth quarter of 2009 was due to the same factors
mentioned above.

Direct operating expenses were up 43% year-on-year in the fourth quarter
but flat for the full year in US dollar terms. The increase in the fourth
quarter primarily reflected $4.8 million of stock-based compensation expenses
arising from the granting of options in October and December 2009 under the
Company's 2009 Stock Incentive Plan.

Selling, general and administrative expenses were down 16% year-on-year
in the fourth quarter and down 23% for the full year in US dollar terms when
excluding a one-off stock-based compensation expense of $28.6 million. That
one-off expense relates to a payment made under a share appreciation rights
agreement with the Company's former CEO and Board member Alexander Rodnyansky
in settlement of legal actions brought by the Company against Mr. Rodnyansky,
which was recognized in the fourth quarter of 2009.

Total stock-based compensation expenses were $36.0 million in the fourth
quarter (Q4 2008: $4.2 million) and $47.6 million for the full year (2008:
$16.1 million).

Programming expenses were up 2% year-on-year in the fourth quarter but
down 19% for the full year in US dollar terms. The year-on-year increase in
programming costs in the fourth quarter reflected a relatively more expensive
programming mix. The decrease in programming costs for the full year
reflected the depreciation of the Russian ruble against the US dollar
reporting currency, as well as changes made to the amortization rates for
certain types of Russian-produced programming in order to better reflect
anticipated revenue generation patterns. These changes resulted in a $5.9
million
year-on-year reduction in amortization expenses for the full year.

Sublicensing and own production costs were up 33% year-on-year in the
fourth quarter but down 19% for the full year. In the fourth quarter, the
increase in sublicensing and own production costs reflected the increase in
the corresponding revenues. The decrease in the amortization of sublicensing
rights and own production costs when comparing full-year 2009 to 2008 was due
primarily to the decreased cost of internally produced series and sitcoms
sold to a third party in Ukraine. The decrease in cost was due primarily to
the depreciation of the Russian ruble against the US dollar.

As a result of the latest annual year-end asset impairment test, the
Company has reported an $18.7 million non-cash impairment charge in the
fourth quarter of 2009. The charge related to the impairment of a number of
local broadcasting licenses in Russia resulting from a re-weighting of the
cities in the TNS audience measurement panel.

CTC Media recognized an aggregate $232.7 million non-cash
intangible asset impairment charge in the fourth quarter of 2008, of which
$95.6 million related to the broadcasting licenses and trademarks of DTV
Group in Russia, $132.9 million related to the broadcasting licenses and
goodwill balances of Channel 31 in Kazakhstan, and $4.2 million related to
the licenses of the broadcasting group in Moldova. The impairments reflected
the changes in market conditions and revisions to the outlooks for the
businesses compared to when the assets were acquired.

Consolidated adjusted OIBDA was $87.4 million in the fourth
quarter (Q4 2008: $96.5 million) and $211.3 million for the full year (2008:
$280.2 million). The Company therefore reported an adjusted OIBDA margin of
48.4% in the quarter (Q4 2008: 51.5%) and 41.7% for the full year (2008:
43.8%).

Group depreciation and amortization charges decreased by 13%
year-on-year to $3.3 million in the quarter (Q4 2008: $3.8 million) and by
14% to $11.5 million for the full year (2008: $13.4 million) and adjusted
consolidated operating income totaled $84.0 million in the quarter (Q4 2008:
$92.7 million) and $199.8 million for the full year (2008: $266.9 million).

Net interest income was $2.3 million in the fourth quarter of
2009 compared to a net interest expense of $2.0 million in the same period of
2008, while net interest expenses fell 73% year-on-year to $0.9 million
(2008: $3.2 million) for the full year following scheduled repayments on the
Company's US$135 million syndicated loan in 2008 and 2009.

Adjusted pre-tax income therefore grew by 18% year-on-year to
$87.6 million in the fourth quarter (Q4 2008: $74.3 million) and totaled
$196.0 million for the full year (2008: $237.1 million).

The adjusted effective tax rate in 2008 was 21% for the full
year and 2% for the fourth quarter including the one-off impact on the
Company's deferred taxes assets and liabilities of the decrease in the
statutory income tax rates in Russia (from 24% to 20%) and Kazakhstan (from
30% to 20%) from the beginning of 2009, which resulted in the recognition of
a $19.0 million income tax benefit in the fourth quarter of 2008. Net of this
impact, the adjusted effective tax rate in 2008 would have been 29% for the
full year and 28% for the fourth quarter. The lower adjusted effective tax
rate of 24% in the fourth quarter and 25% for the full year of 2009 primarily
reflected the decrease in statutory tax rates effective from January 1, 2009.
The tax rate also includes the $2.0 million accrual of tax payments that will
fall due in 2010 on the $40 million of dividend payments to be paid in 2010.

Adjusted net income attributable to CTC Media, Inc.
stockholders therefore decreased year-on-year to $64.5 million in the fourth
quarter (Q4 2008: $64.6 million) and amounted to $144.0 million for the full
year (2008: $176.1 million). Adjusted fully diluted earnings per share
amounted to $0.41 in the quarter (Q4 2008: $0.41) and $0.91 for the full year
(2008: $1.11).

Cash Flow

The Company's net cash flow from operating
activities totaled $132.9 million for the full year 2009 (2008: $185.9
million
) and reflected the net effect of lower advertising sales and lower
spending for programming and sublicensing rights in 2009. The cash flow from
operating activities was impacted by the $29.4 million cash payment made in
December 2009 in part settlement of litigation brought by CTC Media against
its former CEO.

Cash used in investing activities totaled
$81.7 million for the full year 2009 (2008: $419.0 million) and included the
acquisition of regional television stations in Russia for a total cash
consideration of $14.6 million, $11.0 million of earn-out payments related to
the acquisitions of the Costafilm and Soho Media companies in 2008, purchases
of equipment and software for the Company's new digital broadcasting center
in Moscow and $39.8 million of cash placed in short-term deposits.

Cash used for financing activities amounted
to $62.5 million for the full year (cash provided by financing activities for
2008: $20.6 million). This included a $62.0 million part repayment of the
Company's $135 million syndicated loan, which was drawn down in July 2008 in
order to finance the acquisition of DTV Group. Also, in 2009, the Company
received $3.4 million in proceeds from exercise of share appreciation rights
by its former CEO.

The Company's cash and cash equivalents and short-term investments
amounted to $123.5.4 million at December 31, 2009, compared to $98.1 million at
the end of 2008.

Borrowings

The Company's total borrowings and accrued
interest amounted to $28.3 million at the end of the year, compared to $90.6
million
at the end of 2008. The Company therefore had a net cash position,
which is defined as cash and cash equivalents and short-term deposits less
interest-bearing liabilities, of $95.2 million at the end 2009, compared to a
net cash position of $7.5 million at the end of 2008. The Company intends to
repay the remaining $28.3 million balance under its $135 million syndicated
loan facility on March 22, 2010.

Dividends

The CTC Media Board of Directors has
announced its intention to pay an aggregate of $40 million in cash dividends
in 2010. The payment of the first installment of $0.065 per outstanding share
of common stock, or $10 million in total, has been approved by the Board. The
record date for this first installment is March 10, 2010 and the payment date
is March 31, 2010. The Board has also announced its intention to pay the
three remaining $10 million installments in each of June, September and
December 2010. While it is the Board's current intention to declare and pay
these three future installments, there can be no assurance that such
installments will in fact be declared and paid. Any such declaration is at
the discretion of the Board and will depend upon factors such as CTC Media's
earnings, financial position and cash requirements.

2010 Outlook

CTC Media has now contracted approximately
85% of its forecast full year 2010 Russian national inventory under forward
contracts at approximately the same average price levels as in 2009. CTC
Media expects to continue to outperform the Russian advertising market in
2010, but not by the level achieved in 2009. The pricing environment is
currently showing signs of improvement moving forward for later in the year
and CTC Media's target audience shares have continued to grow so far in 2010.

CTC Media is also substantially increasing
its investments in the development of the DTV and Domashny channels in 2010,
and will invest throughout the year to further enhance the programming
schedules and expand the coverage of these two networks, in order to
significantly accelerate their development. As a result of these and other
investments, the Company's operating expenses are expected to increase by
approximately 15% for the full year based on average 2009 ruble / dollar
exchange rates, when excluding the non-recurring impairment charges and
stock-based compensation expenses in 2009. The year-on-year increase in
operating expenses is expected to be significantly weighted to the first half
of the year. CTC Media's capital expenditures are expected to reach up to $40
million
in 2010 as a result of the establishment of a unified digital
play-out facility in Moscow, the ongoing digitalization of the Company's
content library, the upgrading of broadcasting equipment and the planned move
to a new principal office location in Moscow.

Conference Call

The Company will host a conference call to discuss its 2009
fourth quarter and full year financial results today, Friday, February 26,
2010
, at 9:00 a.m. ET (5:00 p.m. Moscow time, 2:00 p.m. London time). To
access the conference call, please dial +1 718 247 0886 (US/International) or
+44(0)20-7806-1968 (UK/International). The pass code for the call is
2189494. A live webcast of the conference call will also be available via the
investor relations section of the Company's corporate web site -
www.ctcmedia.ru/investors. The webcast will also be archived on the
Company's web site for two weeks.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are
prepared and presented in accordance with US GAAP, the Company uses the
following non-GAAP financial measures: OIBDA (on a consolidated and segment
basis), OIBDA margin and the adjusted measures described below. The
presentation of this financial information is not intended to be considered
in isolation or as a substitute for, or superior to, financial information
prepared and presented in accordance with GAAP. For more information on these
non-GAAP financial measures, please see the accompanying financial tables
included at the end of this release.

The Company uses these non-GAAP financial measures for
financial and operational decision making and as a means to evaluate
period-to-period comparisons. The Company believes that these non-GAAP
financial measures provide meaningful supplemental information regarding its
performance and liquidity by excluding certain expenses that may not be
indicative of its recurring core business operating results. These metrics
are used by management to further its understanding of the Company's
operating performance in the ordinary, ongoing and customary course of
operations. The Company also believes that these metrics provide investors
and equity analysts with a useful basis for analyzing operating performance
against historical data and the results of comparable companies.

OIBDA and OIBDA margin. OIBDA is defined as operating income
before depreciation and amortization (exclusive of amortization of
programming rights and sublicensing rights). OIBDA margin is defined as OIBDA
divided by total operating revenues. The most directly comparable GAAP
measures to OIBDA and OIBDA margin are operating income and operating income
margin, respectively. Unlike operating income, OIBDA excludes depreciation
and amortization, other than amortization of programming rights and
sublicensing rights. The purchase of programming rights is the Company's most
significant expenditure that enables it to generate revenues, and OIBDA
includes the impact of the amortization of these rights. Expenditures for
capital items such as property, plant and equipment have a materially less
significant impact on the Company's ability to generate revenues. For this
reason, the Company excludes the related depreciation expense for these items
from OIBDA. Moreover, a significant portion of the Company's intangible
assets were acquired in business acquisitions. The amortization of intangible
assets is therefore also excluded from OIBDA.

Adjusted financial measures. As described above, in the fourth
quarter of 2008, CTC Media recognized an aggregate $232.7 million non-cash
charge for impairment of certain intangible assets acquired in connection
with three acquisitions made in 2008. In the fourth quarter of 2009, CTC
Media recognized a $18.7 million charge arising from the impairment of the
broadcasting licenses of certain regional owned-and-operated stations in
Russia and a $28.6 million stock-based compensation expense in conjunction
with the previously announced settlement of litigation brought by CTC Media
against its former CEO. CTC Media uses adjusted OIBDA (on a consolidated and
segment basis), total operating expenses (before non-recurring items),
adjusted operating income, adjusted net income before tax, adjusted income
tax expense, adjusted net income and adjusted diluted earnings per share,
each of which has been adjusted to exclude the non-recurring items described
above, so as to permit management to assess and compare the operational
performance of the business for the fourth quarters of 2008 and 2009, and
full years 2008 and 2009, and to create comparable results for future
reporting periods.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia,
with operations throughout Russia and elsewhere in the CIS. It operates three
free-to-air television networks in Russia - CTC, Domashny and DTV, Channel 31
in Kazakhstan and TV companies in Uzbekistan and Moldova. CTC Media also owns
two TV content production companies, Costafilm and Soho Media. The Company's
common stock is traded on The NASDAQ Global Select Market under the symbol
"CTCM". For more information on CTC Media, please visit
www.ctcmedia.ru.

Caution Concerning Forward Looking Statements

Certain statements in this press release that are not based on
historical information are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements include, among others, statements regarding developments in the
volume and pricing of television advertising in the Company's target markets;
the Company's anticipated advertising sellout in 2010; the further
development of the DTV and Domashny channels; the Company's anticipated
operating expenses and capital expenditures in 2010; and the Company's
intention to pay further dividends in 2010. These statements reflect the
Company's current expectations concerning future results and events. These
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of CTC Media to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.

The potential risks and uncertainties that could cause actual
future results to differ from those expressed by forward-looking statements
include, among others, the implementation of recent Russian legislation that
will change the structure of the Russian television advertising sales market;
the Company's current reliance on a single television advertising sales house
for substantially all of its revenues; depreciation of the value of the
Russian ruble compared to the US dollar; changes in the size of the Russian
television advertising market; the Company's ability to deliver audience
share, particularly in primetime, to its advertisers; free-to-air television
remaining a significant advertising forum in Russia; and restrictions on
foreign involvement in the Russian television business. These and other risks
are described in the "Risk Factors" section of CTC Media's quarterly report
on Form 10-Q for the third quarter of 2009, filed with the SEC on November 5,
2009
, and/or the Company's annual report on Form 10-K for the full year 2009,
to be filed with the SEC on or about March 1, 2010.

Other unknown or unpredictable factors could have material
adverse effects on CTC Media's future results, performance or achievements.
In light of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed herein may not occur. You are cautioned not
to place undue reliance on these forward-looking statements. CTC Media does
not undertake any obligation to publicly update or revise any forward-looking
statements because of new information, future events or otherwise.

                        CTC MEDIA, INC, AND SUBSIDIARIES
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
          (in thousands of US dollars, except share and per share data)

                             Three months ended            Year ended
                                 December 31,             December 31,
                               2008       2009          2008        2009
    REVENUES:
    Advertising revenue      $ 183,092   $ 172,559   $ 623,336   $ 483,945
    Sublicensing and own
     production revenue          3,415       7,583      14,016      20,999
    Other revenue                  842         365       2,819       1,169
    Total operating revenues   187,349     180,507     640,171     506,113

    EXPENSES:
    Direct operating expenses  (10,206)    (15,927)    (37,514)    (37,422)
    Selling, general and
     administrative            (22,951)    (47,864)    (93,414)   (100,799)
    Amortization of
     programming rights        (56,327)    (57,514)   (220,557)   (178,392)
    Amortization
     of sublicensing rights
     and own production cost    (1,326)       (408)     (8,443)     (6,832)
    Depreciation and
     amortization (exclusive of
     amortization of programming
     rights and sublicensing
     rights)                     (3,826)     (3,335)    (13,379)    (11,454)
    Impairment loss            (232,683)    (18,739)   (232,683)    (18,739)
    Total operating expenses   (327,319)   (143,787)   (605,990)   (353,638)
    OPERATING INCOME (LOSS)    (139,970)     36,720      34,181     152,475
    FOREIGN CURRENCY GAINS
     (LOSSES)                   (17,089)        (93)    (28,861)     (4,555)
    INTEREST INCOME                 967       3,593       6,221       6,087
    INTEREST EXPENSE             (2,926)     (1,255)     (9,434)     (6,959)
    GAINS ON SALE OF BUSINESSES       -           -           -           -
    OTHER NON-OPERATING
     INCOME, net                    156       1,065         776       1,060
    EQUITY IN INCOME (LOSSES)
     OF INVESTEE COMPANIES          447         228       1,511         537
    Income (loss) before
     income tax                (158,415)     40,258       4,394     148,645
    INCOME TAX EXPENSE           28,678     (17,011)    (19,874)    (45,626)
    CONSOLIDATED NET
     INCOME (LOSS)           $ (129,737)   $ 23,247   $ (15,480)  $ 103,019
    LESS: (INCOME)
     LOSS ATTRIBUTABLE TO
     NONCONTROLLING INTEREST   $ 40,695    $ (2,360)   $ 37,934    $ (2,630)
    NET INCOME (LOSS)
     ATTRIBUTABLE TO CTC
     MEDIA, INC. STOCKHOLDERS $ (89,042)   $ 20,887    $ 22,454   $ 100,389
    Net income (loss) per share
     attributable to CTC
     Media, Inc. stockholders
     - basic                    $ (0.59)     $ 0.14      $ 0.15      $ 0.66
    Net income (loss) per share
     attributable to CTC
     Media, Inc. stockholders
     - diluted                  $ (0.56)     $ 0.13      $ 0.14      $ 0.64
    Weighted average common
     shares outstanding
     - basic                151,956,598 152,425,544 152,146,559 152,223,165
    Weighted average common
     shares outstanding
     - diluted              158,603,987 157,404,447 158,187,922 157,452,763
                        CTC MEDIA, INC, AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (in thousands of US dollars)

                                           Twelve months ended December 31,
                                                    2008         2009
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Consolidated net income (loss)             $ (15,480)   $ 103,019
    Adjustments to reconcile net income to
     net cash provided by operating activities:
    Deferred tax benefit                         (66,142)      (6,317)
    Depreciation and amortization                 13,379       11,454
    Amortization of programming rights           220,557      178,392
    Amortization of sublicensing rights and
     own production cost                           8,443        6,832
    Stock based compensation expense              16,083       47,607
    Equity in (income) of unconsolidated
     investees                                    (1,511)        (537)
    Foreign currency losses                       28,861        4,555
    Impairment loss                              232,683       18,739
    Changes in provision for tax contingencies     1,318       (5,934)
    Changes in operating assets and liabilities:
    Trade accounts receivable                    (26,692)       6,436
    Prepayments                                  (14,366)        (751)
    Other assets                                   8,503        3,708
    Accounts payable and accrued liabilities        (455)       9,144
    Deferred revenue                               4,036       (4,357)
    Other liabilities                             20,986      (30,350)
    Settlement of SARs to former CEO                          (29,390)
    Dividends received from equity investees       1,421          622
    Acquisition of programming and
     sublicensing rights                        (245,684)    (209,321)
    Net cash provided by operating activities    185,937      132,941
    CASH FLOWS FROM INVESTING ACTIVITIES:
    Acquisitions of property and equipment
     and intangible assets                       (10,065)     (16,217)
    Acquisitions of businesses, net of
     cash acquired                              (408,967)     (25,674)
    Investments in deposits                            -      (39,763)
    Net cash used in investing activities       (419,032)     (81,654)
    CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from exercise of stock options        1,849        3,398
    Proceeds from loans                          135,000            -
    Repayments of loans                         (110,193)     (62,000)
    Increase in restricted cash                      (30)           -
    Dividends paid to non-controlling interest    (6,031)      (3,946)
    Net cash provided by (used in)
     financing activities                         20,595      (62,548)
    EFFECT OF EXCHANGE RATE CHANGES ON CASH
     AND CASH EQUIVALENTS                          3,482       (2,353)
    Net decrease in cash
     and cash equivalents                       (209,018)     (13,614)
    CASH AND CASH EQUIVALENTS AT BEGINNING
     OF PERIOD                                   307,073       98,055
    CASH AND CASH EQUIVALENTS AT END OF PERIOD  $ 98,055     $ 84,441
                        CTC MEDIA, INC, AND SUBSIDIARIES
                      UNAUDITED CONSOLIDATED BALANCE SHEETS
          (in thousands of US dollars, except share and per share data)

                                     December 31,     December 31,
                                         2008            2009
    ASSETS
    CURRENT ASSETS:
    Cash and cash equivalents            $ 98,055     $ 84,441
    Short-term investments                      -       39,072
    Trade accounts receivable, net
     of allowance for doubtful
     accounts (2008 - $1,355; 2009 -
     $988) (including accounts
     receivable from related parties:
     2008 - $832, 2009 - $1,060)           33,670       24,230
    Taxes reclaimable                       8,171        7,491
    Prepayments (including
     prepayments to related parties:
     2008 - $518, 2009 - $7)               29,005       31,277
    Programming rights, net                71,976       79,268
    Deferred tax assets                    14,166       18,840
    Other current assets                    7,720        2,588
    TOTAL CURRENT ASSETS                  262,763      287,207
    PROPERTY AND EQUIPMENT, net            22,722       25,539
    INTANGIBLE ASSETS, net:
    Broadcasting licenses                 166,173      158,993
    Cable network connections              25,205       29,689
    Trade names                            17,587       17,082
    Network affiliation agreements          9,214        6,769
    Other intangible assets                 1,244        1,887
    Net intangible assets                 219,423      214,420
    GOODWILL                              223,027      226,116
    PROGRAMMING RIGHTS, net                48,031       64,343
    SUBLICENSING RIGHTS, net                1,221          546
    INVESTMENTS IN AND ADVANCES TO
     INVESTEES                              5,311        5,184
    PREPAYMENTS                             6,238        6,605
    DEFERRED TAX ASSETS                    15,154       18,440
    OTHER NON-CURRENT ASSETS                2,939        2,920
    TOTAL ASSETS                        $ 806,829    $ 851,320

    LIABILITIES AND STOCKHOLDERS'EQUITY
    CURRENT LIABILITIES:
    Accounts payable (including
     accounts payable to related
     parties: 2008 - $55, 2009 - $397)     41,025       51,088
    Accrued liabilities                    41,573       34,968
    Taxes payable                          30,154       27,871
    Short-term loans and interest accrued  62,165       28,278
    Deferred revenue                       14,683        4,976
    Deferred tax liabilities                2,778        5,112
    TOTAL CURRENT LIABILITIES             192,378      152,293
    LONG-TERM LOANS                        28,438            -
    DEFERRED TAX LIABILITIES               38,943       35,203
    COMMITMENTS AND CONTINGENCIES               -            -
    STOCKHOLDERS' EQUITY:
    Common stock; $0.01 par value;
     shares authorized 175,772,173;
     shares issued and outstanding
     2008 - 152,155,213, 2009 -
     154,227,747)                           1,522        1,542
    Additional paid-in capital            365,362      386,950
    Retained earnings                     232,321      332,710
    Accumulated other comprehensive los   (54,616)     (58,428)
    Non-controlling interest                2,481        1,050
    TOTAL STOCKHOLDERS' EQUITY            547,070      663,824
     TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY               $ 806,829    $ 851,320
                         CTC MEDIA, INC. AND SUBSIDIARIES
                     UNAUDITED SEGMENT FINANCIAL INFORMATION
                          (in thousands of US dollars)

                               Three months ended December 31, 2008

                           Operating
                            revenue
                             from                               Depreciation
                            external   Intersegment Operating      and
                           customers   revenue    income (loss) amortization        

    CTC Network           $115,547       $435        $63,615       $(211)
    Domashny Network        19,166          4          7,998        (147)
    DTV Network             13,463          8         (2,462)     (1,435)
    CTC Television
     Station Group          27,669        340         20,418        (516)
    Domashny Television
     Station Group           4,655        254          1,732        (578)
    DTV Television
     Station Group           1,734        145        (88,056)       (601)
    CIS Group                4,950          -       (136,816)       (258)
    Production Group           164     25,007          5,049          (8)
    Corporate Office             -          -         (8,935)        (71)
    Business segment
     results              $187,348    $26,193      $(137,457)    $(3,825)
    Eliminations
     and other                   -    (26,193)        (2,514)          -
    Consolidated
     results              $187,348          -      $(139,971)    $(3,825)             

    Continued...

                               Three months ended December 31, 2008                 

                                     Stock-based
                                     compensation            OIBDA adjusted
                                     expense related         for impairment
                                     to settlement           loss and one-off
                                     of litigation           stock-based
                         Impairment  against former          compensation
                         loss        CEO             OIBDA   expense

    CTC Network               -              -      $63,826        $63,826
    Domashny Network          -              -        8,145          8,145
    DTV Network          (7,743)             -       (1,027)         6,716
    CTC Television
     Station Group            -              -       20,934         20,934
    Domashny Television
     Station Group            -              -        2,310          2,310
    DTV Television
     Station Group      (87,889)             -      (87,455)           434
    CIS Group          (137,051)             -     (136,558)           493
    Production Group          -              -        5,057          5,057
    Corporate Office          -              -       (8,864)        (8,864)
    Business segment
     results          $(232,683)             -    $(133,632)       $99,051
    Eliminations
     and other                -              -       (2,514)        (2,514)
    Consolidated      $(232,683)             -    $(136,146)       $96,537
                               Three months ended December 31, 2009

                           Operating
                            revenue
                             from                               Depreciation
                            external   Intersegment  Operating      and
                           customers   revenue    income (loss) amortization           

    CTC Network            $115,388      $867       $60,929       $(145)
    Domashny Network         18,676         1         7,131        (121)
    DTV Network              13,265         2         6,278        (799)
    CTC Television
     Station Group           24,342       412         1,118        (551)
    Domashny Television
     Station Group            3,150       452          (387)       (494)
    DTV Television
     Station Group            1,276         5          (997)       (936)
    CIS Group                 3,727         -           565        (196)
    Production Group            683    19,791         3,683         (11)
    Corporate Office            636       638       (39,654)        (82)
    Business segment
     results               $181,143   $22,168       $38,666     $(3,335)
    Eliminations
     and other                 (636)  (22,168)       (1,946)          -
    Consolidated results   $180,507         -       $36,720     $(3,335)    

   Continued ...

                               Three months ended December 31, 2009

                                     Stock-based
                                     compensation            OIBDA adjusted
                                     expense related         for impairment
                                     to settlement           loss and one-off
                                     of litigation           stock-based
                         Impairment  against former          compensation
                         loss        CEO             OIBDA   expense

    CTC Network                -                    $61,074     $61,074
    Domashny Network                                  7,252       7,252
    DTV Network                -                      7,077       7,077
    CTC Television       (17,015)                     1,669      18,684
     Station Group
    Domashny Television   (1,724)                       107       1,831
     Station Group
    DTV Television             -                        (61)        (61)
     Station Group
    CIS Group                  -                        761         761
    Production Group           -                      3,694       3,694
    Corporate Office           -     (28,588)       (39,572)    (10,984)
    Business segment    $(18,739)   $(28,588)       $42,001     $89,328
     results
    Eliminations               -           -         (1,946)     (1,946)
     and other
    Consolidated        $(18,739)   $(28,588)       $40,055     $87,382
     results

Continued …

                        CTC MEDIA, INC. AND SUBSIDIARIES
               UNAUDITED SEGMENT FINANCIAL INFORMATION (Continued)
                                  Year ended December 31, 2008

                           Operating
                            revenue
                             from                               Depreciation
                            external   Intersegment  Operating      and
                           customers   revenue    income (loss) amortization   

    CTC Network            $412,614     $4,516      $207,382       $(963)
    Domashny Network         64,142         13        18,868        (656)
    DTV Network              35,868         16         7,286      (2,332)
    CTC Television           95,033      1,704        60,384      (2,106)
     Station Group
    Domashny Television      16,003      1,069         2,552      (2,538)
     Station Group
    DTV Television            5,069        368       (89,811)     (2,330)
     Station Group
    CIS Group                10,930          -      (139,712)       (880)
    Production Group            512     47,103         5,302         (52)
    Corporate Office              -                  (34,824)     (1,522)
    Business segment       $640,171    $54,789       $37,427    $(13,379)
     results
    Eliminations                  -    (54,789)       (3,246)          -
     and other
    Consolidated           $640,171          -       $34,181    $(13,379)
     results

    Continued... 

                                  Year ended December 31, 2008

                                     Stock-based
                                     compensation            OIBDA adjusted
                                     expense related         for impairment
                                     to settlement           loss and one-off
                                     of litigation           stock-based
                         Impairment  against former          compensation
                         loss        CEO             OIBDA   expense

    CTC Network                -                  $208,345     $208,345
    Domashny Network           -                    19,524       19,524
    DTV Network           (7,743)                    9,618       17,361
    CTC Television
     Station Group             -                    62,490       62,490
    Domashny Television
     Station Group             -                     5,090        5,090
    DTV Television
     Station Group       (87,889)                  (87,481)         408
    CIS Group           (137,051)                 (138,832)      (1,781)
    Production Group           -                     5,354        5,354
    Corporate Office           -                   (33,302)     (33,302)
    Business segment
     results           $(232,683)                  $50,806     $283,489
    Eliminations
     and other                 -                    (3,246)      (3,246)
    Consolidated
     results           $(232,683)                  $47,560     $280,243

Continued…

                                    Year ended December 31, 2009

                           Operating
                            revenue
                             from                               Depreciation
                            external   Intersegment  Operating      and
                           customers   revenue    income (loss) amortization      

    CTC Network           $326,006      $3,042      $160,489        $(463)
    Domashny Network        50,648          31        14,911         (379)
    DTV Network             40,550           2        16,459       (2,721)
    CTC Television
     Station Group          64,014       1,333        24,825       (1,935)
    Domashny Television
     Station Group           8,810       1,422          (101)      (1,471)
    DTV Television
     Station Group           3,858         121        (3,940)      (3,326)
    CIS Group               11,020           -        (2,209)        (804)
    Production Group         1,207      52,297         6,521          (38)
    Corporate Office         1,537       1,537       (61,264)        (317)
    Business segment
     results              $507,650     $59,785      $155,691     $(11,454)
    Eliminations
     and other              (1,537)    (59,785)       (3,216)           -
    Consolidated
     results              $506,113           -      $152,475      $(11,454)

Continued…

                                              Year ended December 31, 2009

                                     Stock-based
                                     compensation            OIBDA adjusted
                                     expense related         for impairment
                                     to settlement           loss and one-off
                                     of litigation           stock-based
                         Impairment  against former          compensation
                         loss        CEO             OIBDA   expense

    CTC Network              -                    $160,952    $160,952
    Domashny Network         -                      15,290      15,290
    DTV Network                                     19,180      19,180
    CTC Television
     Station Group     (17,015)                     26,760      43,775
    Domashny Television
     Station Group      (1,724)                      1,370       3,094
    DTV Television
     Station Group           -                        (614)       (614)
    CIS Group                -                      (1,405)     (1,405)
    Production Group         -                       6,559       6,559
    Corporate Office         -       (28,588)      (60,947)    (32,359)
    Business segment
     results          $(18,739)     $(28,588)     $167,145    $214,472
    Eliminations
     and other               -             -        (3,216)     (3,216)
    Consolidated
     results          $(18,739)     $(28,588)     $163,929    $211,256
                          CTC MEDIA, INC. AND SUBSIDIARIES
                       RECONCILIATION OF CONSOLIDATED OIBDA TO
                           CONSOLIDATED OPERATING INCOME

                            Three months ended      Year ended
                                December 31,        December 31,
                             2008        2009     2008        2009 

                               (in thousands of US dollars)

    OIBDA                   $(136,144)  $40,055   $47,560  $163,929
    Depreciation and
    amortization
     (exclusive of
     amortization of
     programming rights and
     sublicensing rights)      (3,826)   (3,335)  (13,379)  (11,454)
    Operating income        $(139,970)  $36,720   $34,181  $152,475
                        CTC MEDIA, INC. AND SUBSIDIARIES
                 RECONCILIATION OF CONSOLIDATED OIBDA MARGIN TO
                      CONSOLIDATED OPERATING INCOME MARGIN

                             Three months ended   Year ended
                                 December 31,     December 31,
                               2008      2009     2008   2009

    OIBDA margin              (72.7%)    22.2%    7.4%  32.4%
    Depreciation and
     amortization (exclusive
     of amortization of
     programming rights and
     sublicensing rights) as
     a percentage of total
     operating revenues        (2.0%)    (1.8%)  (2.1%) (2.3%)
    Operating income margin   (74.7%)    20.3%    5.3%  30.1%
                        CTC MEDIA, INC. AND SUBSIDIARIES
             RECONCILIATION OF CONSOLIDATED ADJUSTED OIBDA AND OTHER
                       ADJUSTED FINANCIAL MEASURES TO
          CONSOLIDATED OIBDA AND OTHER CORRESPONDING CONSOLIDATED GAAP
                      FINANCIAL MEASURES, RESPECTIVELY
                                                                                                                                                                                             income/(loss)  Fully
    (US$ 000's except per
     share data)                     Total                   Income before
                                     operating    Operating  non-controlling
                            OIBDA    expenses  income/(loss) interest      

    Three Months ended
     December 31, 2008
     Adjusted non-US
      GAAP results         $96,537   $(94,636)     $92,712     $74,266
    Impact of non-cash
     intangible asset
     impairment charge    (232,683)  (232,683)    (232,683)   (232,683)
    Results as reported
     (under US GAAP,
     except for OIBDA
     which is a
     non-GAAP
     financial measure)   (136,146)  (327,319)    (139,971)   (158,417)    

    Year ended December
     31, 2008
    Adjusted non-US
     GAAP results         $280,243  $(373,307)    $266,864    $237,077
    Impact of non-cash
     intangible asset
     impairment charge    (232,683)  (232,683)    (232,683)   (232,683)
    Results as reported
     (under US GAAP,
     except for OIBDA
     which is a non-US
     GAAP financial
     measure)               47,560   (605,990)      34,181        4,394  

    Continued...

                                                 Net
                                                 income/(loss)     Fully
    (US$ 000's          Income                   attributable      diluted
    except per          tax      Non-controlling to CTC Media,     earnings
    share               expense  interest        Inc. stockholders per share
    data)
    Three Months ended
     December 31, 2008
     Adjusted non-US
     GAAP results        $(1,653)    $(7,978)       $64,635        $0.41
    Impact of non-cash
     intangible asset
     impairment charge    30,331      48,673       (153,679)       (0.98)
    Results as reported
     (under US GAAP,
     except for OIBDA
     which is a
     non-GAAP
     financial measure)   28,678      40,695        (89,004)       (0.57)

    Year ended December
     31, 2008
    Adjusted non-US
     GAAP results       $(50,205)   $(10,739)      $176,133        $1.11
    Impact of non-cash
     intangible asset
     impairment charge    30,331      48,673       (153,679)       (0.97)
    Results as reported
     (under US GAAP,
     except for OIBDA
     which is a non-US
     GAAP financial
     measure)            (19,874)     37,934         22,454         0.14
                        CTC MEDIA, INC. AND SUBSIDIARIES
             RECONCILIATION OF CONSOLIDATED ADJUSTED OIBDA AND OTHER
                       ADJUSTED FINANCIAL MEASURES TO
          CONSOLIDATED OIBDA AND OTHER CORRESPONDING CONSOLIDATED GAAP
                      FINANCIAL MEASURES, RESPECTIVELY

                                                                                                                                                                                             income/(loss)  Fully
    (US$ 000's except per
     share data)                     Total                   Income before
                                     operating    Operating  non-controlling
                            OIBDA    expenses  income/(loss) interest
    Three months ended
     December 31, 2009

    Adjusted non-US
     GAAP results          $ 87,382  $ (96,460)    $ 84,047    $ 87,585 

    Impact of non-cash
     intangible asset
     impairment charge      (18,739)   (18,739)     (18,739)    (18,739)      

    Impact of stock-based
     compensation expense
     related to settlement
     of litigation against
     former CEO             (28,588)   (28,588)     (28,588)    (28,588)          

    Results as reported
     (under US GAAP, except
     for OIBDA, which is a
     non-GAAP financial
     measure)               40,055   (143,787)      36,720      40,258 

    Year ended
     December 31, 2009

    Adjusted non-US
     GAAP results         $ 211,256 $ (306,311)   $ 199,802   $ 195,972 

    Impact of non-cash
     intangible asset
     impairment charge      (18,739)   (18,739)     (18,739)    (18,739)      

    Impact of stock-based
     compensation expense
     related to settlement
     of litigation against
     former CEO             (28,588)   (28,588)     (28,588)    (28,588)     

    Results as reported
     (under US GAAP, except
     for OIBDA, which is a
     non-GAAP financial
     measure)               163,929   (353,638)     152,475     148,645  

    Continued... 

                                                 Net
                                                 income/(loss)     Fully
    (US$ 000's          Income                   attributable      diluted
    except per          tax      Non-controlling to CTC Media,     earnings
    share               expense  interest        Inc. stockholders per share
    data)                 

    Three months ended
     December 31, 2009

    Adjusted non-US
     GAAP results       $ (20,759)   $ (2,360)    $ 64,446         $ 0.41

    Impact of non-cash
     intangible asset
     impairment charge      3,748           -      (14,991)          0.10

    Impact of stock-based
     compensation expense
     related to settlement
     of litigation against
     former CEO                 -           -      (28,588)          0.18

    Results as reported
     (under US GAAP, except
     for OIBDA, which is a
     non-GAAP financial
     measure)             (17,011)     (2,360)      20,887           0.13

    Year ended
     December 31, 2009

    Adjusted non-US
     GAAP results       $ (49,374)   $ (2,630)   $ 143,967         $ 0.91

    Impact of non-cash
     intangible asset
     impairment charge      3,748           -      (14,991)          0.10

    Impact of stock-based
     compensation expense
     related to settlement
     of litigation against
     former CEO                 -           -      (28,588)          0.18

    Results as reported
     (under US GAAP, except
     for OIBDA, which is a
     non-GAAP financial
     measure)             (45,626)     (2,630)     100,389           0.64
                        CTC MEDIA, INC. AND SUBSIDIARIES
           RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME

    Three Months Ended December 31, 2008

                                     Depreciation
                                              and
                                     amortization
                                    (exclusive of
                              OIBDA  amortization    Operating
                                   of programming  income/(loss)
                                      programming
                                       rights and
                                     sublicensing
    (US$ 000's)                           rights)

    CTC Network            $63,826        $(211)      $63,615
    Domashny Network         8,145         (147)        7,998
    DTV Network             (1,027)      (1,435)       (2,462)
    CTC Television
     Station Group          20,934         (516)       20,418
    Domashny Television
     Station Group           2,310         (578)        1,732
    DTV Television
     Station Group         (87,455)        (601)      (88,056)
    CIS Group             (136,558)        (258)     (136,816)
    Production Group         5,057           (8)        5,049
    Corporate               (8,864)         (71)       (8,935)

    Business Segment     $(133,632)     $(3,825)    $(137,457)
    Results
    Eliminations and
     Other                  (2,514)           -        (2,514)
    Consolidated Results $(136,146)     $(3,825)    $(139,971)
    Three Months Ended December 31, 2009

                                    Depreciation
                                             and
                                    amortization
                                   (exclusive of
                            OIBDA   amortization     Operating
                                  of programming  income/(loss)
                                      rights and
                                    sublicensing
    (US$ 000's)                          rights)

    CTC Network           $61,074         $(145)       $60,929
    Domashny Network        7,252          (121)         7,131
    DTV Network             7,077          (799)         6,278
    CTC Television
     Station Group          1,669          (551)         1,118
    Domashny Television
     Station Group            107          (494)          (387)
    DTV Television
     Station Group            (61)         (936)          (997)
    CIS Group                 761          (196)           565
    Production Group        3,694           (11)         3,683
    Corporate             (39,572)          (82)       (39,654)

    Business Segment
     Results              $42,001       $(3,335)       $38,666
    Eliminations and
     Other                 (1,946)            -         (1,946)
    Consolidated Results  $40,055       $(3,335)       $36,720

    Continued ...

                        CTC MEDIA, INC. AND SUBSIDIARIES
           RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME
                                 (continued)

    Year Ended December 31, 2008

                                     Depreciation
                                              and
                                     amortization
                                    (exclusive of
                             OIBDA   amortization     Operating
                                   of programming  income/(loss)
                                       rights and
                                     sublicensing
    (US$ 000's)                           rights)

    CTC Network           $208,345         $(963)      $207,382
    Domashny Network        19,524          (656)        18,868
    DTV Network              9,618        (2,332)         7,286
    CTC Television
     Station Group          62,490        (2,106)        60,384
    Domashny Television
     Station Group           5,090        (2,538)         2,552
    DTV Television
     Station Group         (87,481)       (2,330)       (89,811)
    CIS Group             (138,832)         (880)      (139,712)
    Production Group         5,354           (52)         5,302
    Corporate              (33,302)       (1,522)       (34,824)

    Business Segment
     Results               $50,806      $(13,379)       $37,427
    Eliminations and
     Other                  (3,246)            -         (3,246)
    Consolidated Results   $47,560      $(13,379)       $34,181
    Year Ended December 31, 2009

                                  Depreciation and
                                      amortization
                                     (exclusive of
                                   amortization of
                            OIBDA      programming     Operating
                                        rights and income/(loss)
                                      sublicensing
    (US$ 000's)                            rights)

    CTC Network          $160,952           $(463)      $160,489
    Domashny Network       15,290            (379)        14,911
    DTV Network            19,180          (2,721)        16,459
    CTC Television
     Station Group         26,760          (1,935)        24,825
    Domashny Television
     Station Group          1,370          (1,471)          (101)
    DTV Television
     Station Group           (614)         (3,326)        (3,940)
    CIS Group              (1,405)           (804)        (2,209)
    Production Group        6,559             (38)         6,521
    Corporate             (60,947)           (317)       (61,264)

    Business Segment
     Results             $167,145        $(11,454)      $155,691
    Eliminations and
     Other                 (3,216)              -         (3,216)
    Consolidated Results $163,929        $(11,454)      $152,475

———————————

[1] Total operating expenses (before non-recurring items) is a
non-GAAP financial measure that excludes a $232.7 million charge arising from
the impairment of intangible assets of DTV Group in Russia, Channel 31 in
Kazakhstan and a broadcasting group in Moldova in the fourth quarter of 2008;
an $18.7 million charge arising from the impairment of the broadcasting
licenses of certain regional owned-and-operated stations in Russia in the
fourth quarter of 2009; and a $28.6 million stock-based compensation expense
recognized in conjunction with the previously announced settlement of
litigation brought by CTC Media against its former CEO in the fourth quarter
of 2009. Please see the accompanying financial tables at the end of this
release for a reconciliation of total operating expenses (before
non-recurring items) to GAAP total operating expenses.

[2] OIBDA is defined as operating income before depreciation
and amortization (excluding amortization of programming rights and
sublicensing rights). OIBDA margin is defined as OIBDA divided by total
operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial
measures. Please see the accompanying financial tables at the end of this
release for a reconciliation of OIBDA to operating income and OIBDA margin to
operating income margin.

[3] All adjusted numbers are non-GAAP financial measures
reported before the non-recurring items described above. Please see the
accompanying financial tables at the end of this release for a reconciliation
of adjusted OIBDA to OIBDA, adjusted net income to GAAP reported net income
and adjusted diluted earnings per share to GAAP reported earnings per share.

[4] Organic operating expenses are total operating expenses
excluding the operating expenses of the businesses acquired and consolidated
in the second quarter of 2008 (DTV Group, CIS Group and Production Group),
impairment charges on intangible assets, and stock-based compensation expense
recognized in conjunction with the previously announced settlement by CTC
Media of litigation brought by it against its former CEO.

[5] Segment revenues are shown from external customers only, net of
intercompany revenues of $26.2 million in the fourth quarter of 2008, $22.2
million
in the fourth quarter of 2009, $54.8 million for the full year 2008,
and $59.8 million for the full year 2009, primarily related to revenues from
the Production Group that have been eliminated in the consolidation of the
Company's revenues.

[6] Excludes a $28.6 million stock-based compensation expense recognized
in the fourth quarter of 2009 in conjunction with the previously announced
settlement of litigation brought by CTC Media against its former CEO.

    For further information, please visit www.ctcmedia.ru or contact:

    CTC Media, Inc.
    Investor Relations
    Ekaterina Ostrova
    Tel: +7-495-783-3650
    ir@ctcmedia.ru

    Media Relations
    Ekaterina Osadchaya or
    Angelika Larionova
    Tel: +7-495-785-6333
    pr@ctcmedia.ru

For further information, please visit www.ctcmedia.ru or contact: CTC Media, Inc., Investor Relations, Ekaterina Ostrova, Tel: +7-495-783-3650, ir at ctcmedia.ru ; Media Relations, Ekaterina Osadchaya or Angelika Larionova, Tel: +7-495-785-6333, pr at ctcmedia.ru

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