CTC Media: Financial Results for the Second Quarter, Ended June 30, 2009

MOSCOW - 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 second quarter and six months ended June 30, 2009.

Three Months Six Months Ended June 30, Ended June 30, (US$ 000’s except per 2008 2009 Change 2008 2009 Change share data) Total operating revenues $172,770 $113,894 -34.1% $309,516 $218,672 -29.4% Total operating expenses (102,735) (70,065) -31.8% (186,449) (138,260) -25.8% OIBDA(1) 73,440 46,509 -36.7% 128,676 85,673 -33.4% OIBDA margin 42.5% 40.8% -1.7% 41.6% 39.2% -2.4% Net income attributable to CTC Media, Inc. stockholders 48,816 30,335 -37.9% 90,529 53,647 -40.7% Diluted earnings per share $0.31 $0.19 -38.7% $0.57 $0.34 -40.4% SECOND QUARTER FINANCIAL HIGHLIGHTS - Total revenues down 34% year-on-year in US dollar terms (down 10% year-on-year in ruble terms) to $113.9 million - Russian advertising revenues down 12% year-on-year in ruble terms - Total operating expenses down 32% year-on-year in US dollar terms (down 7% year-on-year in ruble terms) to $70.1 million - OIBDA of $46.5 million with an OIBDA margin of 40.8% - Net income of $30.3 million, fully diluted earnings per share of $0.19 - Net cash position of $35.0 million SECOND QUARTER OPERATING HIGHLIGHTS - Average combined 4+ audience share in Russia up year-on-year to 13.4% from 12.6% - Target audience viewing shares up for all three Russian networks on a sequential and year-on-year basis - CTC was the most watched channel in Russia in prime time by 25-54 year olds with kids for the first time - CTC was the third most watched channel in Russia by 6-54 year olds for the first time since 2006

Anton Kudryashov, Chief Executive Officer of CTC Media, commented: “Despite the fact that the ongoing weak economic environment adversely impacted advertising spending in the second quarter, we have continued to significantly outperform the market. Our Russian advertising revenues, which account for over 90% of total revenues, were down 12% year-on-year in ruble terms in the second quarter, compared to an estimated 21% decline in the overall Russian television advertising market according to Video International. The year-on-year decline in the consolidated results again reflected the substantial year-on-year weakening of the ruble and other operating currencies against the US dollar reporting currency.”

“Our outperformance of the market was driven by healthy sell-out and power ratios, as well as rising target audience viewing shares for our three complementary Russian networks. At the same time we managed to substantially reduce our operating costs year-on-year and the measures that we have taken in 2008 and into 2009 have enabled us to maintain an OIBDA margin of over 40%. Furthermore, we remain in a net cash financial position.”

“Despite the limited levels of forward visibility, we do expect to continue to outperform the Russian television advertising market in the second half of 2009. We also continue to expect organic costs to be flat year-on-year in ruble terms for the full year, despite the fact that we are now investing in programming for the Fall schedules, in order to build on the momentum of our growing audience shares and to enhance our competitive position.”

Operating Review Revenues(2) Three Months Six Months Ended June 30, Ended June 30, (US$ 000’s) 2008 2009 Change 2008 2009 Change Operating revenues: CTC Network $109,863 $71,655 -34.8% 207,694 142,210 -31.5% Domashny Network 16,211 10,884 -32.9% 31,678 21,450 -32.3% DTV Network 12,220 9,183 -24.9% 12,220 17,850 46.1% CTC Television Station Group 26,394 15,873 -39.9% 45,993 26,127 -43.2% Domashny Television Station Group 4,366 2,217 -49.2% 7,565 3,957 -47.7% DTV Station Television Group 1,804 1,015 -43.7% 1,804 1,789 -0.8% CIS Group 1,722 2,836 64.7% 2,372 4,880 105.7% Production Group 190 231 21.6% 190 409 115.3% Total operating revenues $172,770 $113,894 -34.1% $309,516 $218,672 -29.4%

Total operating revenues for the three months ended June 30, 2009 were down 34% year-on-year in dollar terms. The second quarter results in both 2008 and 2009 included full quarterly contributions by DTV Group in Russia and Channel 31 Group in Kazakhstan, which were both acquired in the first half of 2008.

The reported decline in revenues reflected the underlying weakness in the advertising markets, as well as the year-on-year depreciation of the Company’s principal operating currency (the ruble) against the Company’s reporting currency (the US dollar). The depreciation had a negative impact of approximately 27% on the Company’s ruble denominated sales. Advertising sales in Russia, which accounted for 93% of total second quarter revenues in 2009 and 95% in 2008, were down 12% year-on-year in the second quarter in ruble terms.

The year-on-year development in advertising revenues for the Russian Television Station Groups reflected the sharper decline in the regional advertising markets in Russia when compared with the national advertising market, and was due to the weighting of spending by large advertisers to national campaigns.

CIS Group revenues were up 65% year-on-year in the second quarter of 2009 due to increased advertising prices and sell-out rates for Channel 31 in Kazakhstan, which were offset by the year-on-year depreciation of the Kazakh tenge against the US dollar. Channel 31 generated over 90% of CIS Group revenues in the quarter.

Share of Viewing in Target Demographics Average Audience Shares (%) Q2 2008 Q1 2009 Q2 2009 CTC Network (all 6-54) 11.6 11.4 12.5 Domashny Network (females 25-60) 2.7 2.6 2.9 DTV Network (all 25-54) 2.3 2.2 2.4 Channel 31 (all 6-54) 13.3 12.7 11.7

Each of the Russian networks delivered higher target audience viewing shares in the second quarter, both on a sequential and year-on-year basis.

The flagship CTC channel substantially increased its target audience share in the second quarter and, for the first time since 2006, was the third most watched channel by 6 to 54 year olds. CTC was also the most watched channel in prime time by 25 to 54 year olds with kids, and maintained its overall position as the fourth most watched free-to-air channel in Russia. The rising ratings were driven by the continued success of the ‘Daddy’s Girls’ and ‘Ranetki’ series in prime time and supported by a well-balanced broader programming schedule.

Domashny’s audience share also increased year-on-year and quarter-on-quarter due to the strong performance of the CTC hit series ‘Born Not Pretty’, as well as the late prime time weekday slot featuring foreign series such as ‘Desperate Housewives’.

DTV has been focused since January 2009 on the 25-54 year old target group. The share of viewing in the revised demographic increased in the second quarter following the continued success of locally produced ‘Marital Fiction’, as well as the late prime time slots for Russian and foreign criminal investigation and action formats such as ‘The Investigators’, ‘The Trace’, and ‘Law and Order’.

Expenses Three Months Six Months Ended June 30, Ended June 30, (US$ 000’s) 2008 2009 Change 2008 2009 Change Operating expenses: Direct operating expenses $ 10,206 $7,635 -25.2% $16,996 $14,982 -11.8% Selling, general & administrative expenses 22,897 16,928 -26.1% 41,971 35,250 -16.0% Amortization of programming rights 61,799 41,415 -33.0% 116,222 78,298 -32.6% Amortization of sublicensing rights and own production cost 4,428 1,407 -68.2% 5,651 4,469 -20.9% Depreciation & amortization 3,405 2,680 -21.3% 5,609 5,261 -6.2% Total operating expenses $102,735 $70,065 -31.8% $186,449 $138,260 -25.8%

Total operating expenses for the three months ended June 30, 2009 were down 32% year-on-year in dollar terms. The reported decrease in expenses reflected the year-on-year reduction in programming amortization expenses, as well as the depreciation of the Company’s ruble and other operating currencies against the US dollar reporting currency. Total operating expenditure was down 7% year on year in ruble terms in the second quarter and included full quarterly contributions from DTV Group and Channel 31 Group in both 2008 and 2009.

Direct operating expenses were down 25% year-on-year in the second quarter in dollar terms, while selling, general and administrative costs were down 26%.

Programming expenses decreased by 33% year-on-year and represented 36% of revenues, which was unchanged from the second quarter of 2008 as a percentage of revenues. The year-on-year decrease reflected a reduction in programming impairment charges from $4.0 million to $1.0 million, and a $1.5 million reduction in amortization charges due to the changes in the Company’s amortization policy for certain types of Russian-produced programming from the beginning of 2009. When excluding the effect of the amortization policy changes, programming expenses were down 31% year-on-year in the second quarter in US dollar terms.

The 68% year-on-year decline in sublicensing and own production costs primarily reflected the lower cost of in-house produced series and sitcoms that were sold to third party broadcasters in Ukraine.

Consolidated OIBDA was therefore lower year-on-year at $46.5 million (Q2 2008: $73.4 million) but the OIBDA margin declined by less than two percentage points to 40.8% (Q2 2008: 42.5%).

Group depreciation and amortization charges decreased by 21% year-on-year to $2.7 million (Q2 2008: $3.4 million) in the second quarter, and consolidated operating income totaled $43.8 million (Q2 2008: $70.0 million).

The Company’s pre-tax income amounted to $41.8 million (Q2 2008: $70.8 million) in the quarter. The effective tax rate decreased year-on-year in the second quarter to 26% (Q2 2008: 30%) mainly due to the decrease in statutory income tax rates in Russia (from 24% to 20%) and Kazakhstan (from 30% to 20%) from the beginning of 2009.

Consolidated net income attributable to CTC Media, Inc. stockholders therefore totaled $30.3 million (Q2 2008: $48.8 million) in the second quarter and fully diluted earnings per share amounted to $0.19 (Q2 2008: $0.31).

Cash Flow

The Company’s net cash flow from operations totaled $50.0 million in the first six months of 2009 (first six months of 2008: $66.9 million) and reflected the net effect of lower advertising sales and lower expenses in the first half of 2009.

Cash used in investing activities totaled $18.7 million during the first six months of 2009 (first six months of 2008: $ 320.3 million) and included $11.0 million in payments related to the acquisitions of Costafilm and Soho Media, as well as the purchasing of equipment and software for the Company’s new digital platform technology center in Moscow. The investments in the first half of 2008 included the acquisition of the DTV Group in Russia, the Channel 31 Group in Kazakhstan, the Costafilm and Soho Media production companies in Russia, and a number of local owned-and-operated stations in Russia.

Cash used for financing activities amounted to $35.7 million in the first half of the year (first six months of 2008: $1.8 million). This included a $33.8 million part repayment of the syndicated loan, which the Company drew down in July 2008 to finance the acquisition of DTV Group.

The Company’s cash and cash equivalents amounted to $91.7 million at June 30, 2009, compared to $98.1 million at the end of 2008 and $62.5 million at June 30, 2008.

Borrowings

The Company’s total borrowings and accrued interest amounted to $56.7 million (June 30, 2008: $155.5 million) at the end of the reporting period, 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 less interest bearing liabilities, of $35.0 million (June 30, 2008: net debt of $93.0 million) at the end of the reporting period, compared to a net cash position of $7.5 million at the end of 2008.

Conference Call

The Company will host a conference call to discuss its second quarter financial results today, Thursday, August 6, 2009, 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 +1-718-247-0880 (US/International) or +44-20-7138-0845 (UK/International). The pass code for the call is 4810933. 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) and OIBDA margin. 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, meaning its operating performance excluding certain non-cash charges. 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 the non-GAAP measures of 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 its intangible assets were acquired in business acquisitions. The amortization of intangible assets is therefore also excluded from OIBDA.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia. It owns and operates the CTC television network, with its signal carried by more than 350 affiliate stations, including 20 owned-and-operated stations; the Domashny television network, with its signal carried by over 250 affiliate stations, including 12 owned-and-operated stations; and the DTV television network, with its signal carried by affiliate stations including five owned-and-operated stations. CTC Media owns two TV content production companies, Costafilm and Soho Media, and operates Channel 31 in Kazakhstan and TV companies in Uzbekistan and Moldova. 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, which include, among other things, statements regarding the impact the current unfavorable macroeconomic situation globally and in Russia may have on the size of the Russian television advertising market in 2009 and the split of advertising sales between the national and local markets, 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, continued depreciation of the value of the Russian ruble compared to the US dollar, changes in the size of the Russian television advertising market, particularly in light of the current economic instability in Russia and globally; 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; the Company’s reliance on a single television advertising sales house for substantially all of its revenues; 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 filed with the SEC on August 6, 2009. 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 AND COMPREHENSIVE INCOME (LOSS) (in thousands of US dollars, except share and per share data) Three months ended June Six months ended June 30, 30, 2008 2009 2008 2009 REVENUES: Advertising $ 165,720 $ 108,540 $ 300,776 $ 207,761 Sublicensing and own production revenue 6,374 5,017 7,452 9,892 Other revenue 676 337 1,288 1,019 Total operating revenues 172,770 113,894 309,516 218,672 EXPENSES: Direct operating expenses (exclusive of amortization of programming rights and sublicensing rights, shown below, exclusive of depreciation and amortization of $2,615 and $2,020 for the three months and $4,033 and $4,071 for the six months ended June 30, 2008 and 2009 respectively; and inclusive of stock-based compensation of $213 and $89 for the three months and $426 and $302 for the six months ended June 30, 2008 and 2009, respectively) (10,206) (7,635) (16,996) (14,982) Selling, general and administrative (exclusive of depreciation and amortization of $790 and $660 for the three months and $1,576 and $1,190 for the six months ended June 30, 2008 and 2009, respectively; inclusive of stock-based compensation of $3,146 and $3,853 for the three months and $6,292 and $7,930 for the six months ended June 30, 2008 and 2009, respectively) (22,897) (16,928) (41,971) (35,250) Amortization of programming rights (61,799) (41,415) (116,222) (78,298) Amortization of sublicensing rights and own production cost (4,428) (1,407) (5,651) (4,469) Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights) (3,405) (2,680) (5,609) (5,261) Total operating expenses (102,735) (70,065) (186,449) (138,260) OPERATING INCOME 70,035 43,829 123,067 80,412 FOREIGN CURRENCY GAINS (LOSSES) 1,528 (703) 2,206 (4,736) INTEREST INCOME 1,175 709 4,967 1,769 INTEREST EXPENSE (2,253) (2,260) (2,259) (4,414) OTHER NON-OPERATING INCOME (LOSSES), net (184) 92 (99) (128) EQUITY IN INCOME OF INVESTEE COMPANIES 452 158 745 235 Income before income tax 70,753 41,825 128,627 73,138 INCOME TAX EXPENSE (21,140) (10,978) (36,230) (19,477) CONSOLIDATED NET INCOME $ 49,613 $ 30,847 $ 92,397 $ 53,661 LESS: INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST $ (797) $ (512) $ (1,868) $ (14) NET INCOME ATTRIBUTABLE TO CTC MEDIA, Inc. $ 48,816 $ 30,335 $ 90,529 $ 53,647 Net income attributable to common stockholders $ 48,816 $ 30,335 $ 90,529 $ 53,647 Net income per share attributable to CTC Media, Inc. stockholders - basic $ 0.32 $ 0.20 $ 0.60 $ 0.35 Net income per share attributable to CTC Media, Inc. stockholders - diluted $ 0.31 $ 0.19 $ 0.57 $ 0.34 Weighted average common shares outstanding - basic 152,150,644 152,155,213 152,137,810 152,155,213 Weighted average common shares outstanding - diluted 159,111,955 157,577,511 159,168,909 156,942,600 CTC MEDIA, INC, AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of US dollars) Six months ended June 30, 2008 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income $ 92,397 $ 53,661 Adjustments to reconcile net income to net cash provided by operating activities: Deferred tax benefit (9,224) (3,242) Depreciation and amortization 5,609 5,261 Amortization of programming rights 116,222 78,298 Amortization of sublicensing rights and own production cost 5,651 4,469 Stock based compensation expense 6,718 8,231 Equity in income of unconsolidated investees (745) (235) Foreign currency (gains) losses (2,206) 4,736 Changes in operating assets and liabilities: Trade accounts receivable (15,933) 1,552 Prepayments 4,328 375 Other assets (5,831) 3,557 Accounts payable and accrued liabilities 1,917 3,155 Deferred revenue (4,936) (8,123) Other liabilities 10,228 (16,226) Dividends received from equity investees 985 334 Acquisition of programming and sublicensing rights (138,311) (85,778) Net cash provided by operating activities 66,869 50,025 CASH FLOWS FROM INVESTING ACTIVITIES: - Acquisitions of property and equipment and intangible assets (6,783) (6,545) Acquisitions of businesses, net of cash acquired (313,001) (12,145) Other (515) - Net cash used in investing activities (320,299) (18,690) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options 1,811 - Repayments of loans - (33,750) (Incease) Decrease in restricted cash (10) 111 Dividends paid to noncontrolling interest (3,574) (2,054) Net cash provided by financing activities (1,773) (35,693) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH (2,034) EQUIVALENTS 10,602 Net decrease in cash and cash equivalents (244,601) (6,392) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 307,073 98,055 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 62,472 $ 91,663 CTC MEDIA, INC, AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of US dollars, except share and per share data) December 31, June 30, 2008 2009 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 98,055 $ 91,663 Trade accounts receivable, net of allowance for doubtful accounts (December 31, 2008 - $1,355; June 30, 2009 - $1,297) 33,670 29,649 Taxes reclaimable 8,171 8,986 Prepayments 29,005 21,306 Programming rights, net 71,976 66,952 Deferred tax assets 14,166 18,052 Other current assets 7,720 5,799 TOTAL CURRENT ASSETS 262,763 242,407 RESTRICTED CASH 210 99 PROPERTY AND EQUIPMENT, net 22,722 20,195 INTANGIBLE ASSETS, net: Broadcasting Licenses 166,173 156,128 Cable Network Connection 25,205 26,281 Trade names 17,587 16,426 Network affiliation agreements 9,214 7,634 Other intangible assets 1,244 785 Net intangible assets 219,423 207,254 GOODWILL 223,027 207,906 PROGRAMMING RIGHTS, net 48,031 59,200 SUBLICENSING RIGHTS, net 1,221 383 INVESTMENTS IN AND ADVANCES TO INVESTEES 5,311 4,864 PREPAYMENTS 6,238 3,013 DEFERRED TAX ASSET 15,154 16,604 OTHER NON-CURRENT ASSETS 2,729 5,417 TOTAL ASSETS $ 806,829 $ 767,342 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable 41,025 43,490 Accrued liabilities 41,573 29,084 Taxes payable 30,154 12,495 Short-term loans and interest accrued 62,165 56,551 Deferred revenue 14,683 2,992 Deferred tax liability 2,778 2,874 TOTAL CURRENT LIABILITIES 192,378 147,486 LONG-TERM LOANS 28,438 178 DEFERRED TAX LIABILITY 38,943 34,787 COMMITMENTS AND CONTINGENCIES (Note 9) - - STOCKHOLDERS’ EQUITY: Common stock; $0.01 par value; shares authorized 175,772,173; shares issued and outstanding December 31, 2008 and June 30, 2009 - 152,155,213) 1,522 1,522 Additional paid-in capital 365,362 373,594 Retained earnings 232,321 285,968 Accumulated other comprehensive loss (54,615) (76,591) Non-controlling interest 2,481 398 TOTAL STOCKHOLDERS’ EQUITY 547,070 584,891 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 806,829 $ 767,342 CTC MEDIA, INC. AND SUBSIDIARIES UNAUDITED SEGMENT FINANCIAL INFORMATION (in thousands of US dollars) Three months ended June 30, 2008 Operating revenue from Operating Depreciation external Intersegment income/ and customers revenue (loss) amortization OIBDA CTC Network $109,863 $3,427 $53,621 $(265) $53,886 Domashny Network 16,211 - 3,200 (173) 3,373 DTV Network 12,220 - 5,626 (275) 5,901 CTC Television 26,394 514 18,894 (529) 19,423 Station Group Domashny Television Station Group 4,366 275 94 (658) 752 DTV Television Station Group 1,804 53 (631) (713) 82 CIS Group 1,722 - (1,505) (222) (1,283) Production Group 190 14,640 663 (38) 701 Corporate Office - - (8,533) (530) (8,003) Business segment results $172,770 $18,909 $71,429 $(3,403) $74,832 Eliminations and other - (18,909) (1,394) (2) (1,392) Consolidated operating income $172,770 - $70,035 $(3,405) $73,440 Three months ended June 30, 2009 Operating revenue from Operating Depreciation external Intersegment income/ and customers revenue (loss) amortization OIBDA CTC Network $71,655 $901 $35,392 $(93) $35,485 Domashny Network 10,884 7 2,552 (72) 2,624 DTV Network 9,183 - 3,446 (623) 4,069 CTC Television Station Group 15,873 330 10,353 (453) 10,806 Domashny Television Station Group 2,217 316 366 (318) 684 DTV Television Station Group 1,015 50 (765) (813) 48 CIS Group 2,836 - (354) (209) (145) Production Group 231 14,290 1,328 (7) 1,335 Corporate Office - - (7,221) (92) (7,130) Business segment results $113,894 $15,894 $45,097 $(2,680) $47,776 Eliminations and other - (15,894) (1,268) - (1,267) Consolidated operating income $113,894 - $43,829 $(2,680) $46,509 CTC MEDIA, INC. AND SUBSIDIARIES UNAUDITED SEGMENT FINANCIAL INFORMATION (continued) (in thousands of US dollars) Six months ended June 30, 2008 Operating revenue from Operating Depreciation external Intersegment income/ and customers revenue (loss) amortization OIBDA CTC Network $207,694 $3,625 $99,157 $(509) $99,666 Domashny Network 31,678 - 7,734 (345) 8,079 DTV Network 12,220 - 5,626 (275) 5,901 CTC Television Station Group 45,993 930 29,527 (1,030) 30,557 Domashny Television Station Group 7,565 525 37 (1,283) 1,320 DTV Television Station Group 1,804 53 (631) (713) 82 CIS Group 2,372 - (1,873) (353) (1,520) Production Group 190 14,640 663 (38) 701 Corporate Office - - (15,736) (1,062) (14,674) Business segment results $309,516 $19,773 $124,504 $(5,608) $130,112 Eliminations and other - (19,773) (1,437) (2) (1,436) Consolidated operating income $309,516 - $123,067 $(5,609) $128,676 Six months ended June 30, 2009 Operating revenue from Operating Depreciation external Intersegment income/ and customers revenue (loss) amortization OIBDA CTC Network $142,210 $1,684 $69,693 $(224) $69,917 Domashny Network 21,450 11 5,936 (185) 6,121 DTV Network 17,850 - 7,167 (1,215) 8,382 CTC Television Station Group 26,127 606 15,622 (868) 16,490 Domashny Television Station Group 3,957 610 443 (629) 1,072 DTV Television Station Group 1,789 77 (1,960) (1,534) (426) CIS Group 4,880 - (1,716) (431) (1,285) Production Group 409 20,168 1,591 (19) 1,610 Corporate Office - - (15,077) (156) (14,921) Business segment results $218,672 $23,156 $81,699 $(5,261) $86,960 Eliminations and other - (23,156) (1,287) (0) (1,287) Consolidated operating income $218,672 - $80,412 $(5,261) $85,673 CTC MEDIA, INC. AND SUBSIDIARIES RECONCILIATION OF CONSOLIDATED OIBDA TO CONSOLIDATED OPERATING INCOME (in thousands of US dollars) Three months ended Six months ended June 30, June 30, 2008 2009 2008 2009 OIBDA $73,440 $46,509 $128,676 $85,673 Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights) (3,405) (2,680) (5,609) (5,261) Operating income $70,035 $43,829 $123,067 $80,412 CTC MEDIA, INC. AND SUBSIDIARIES RECONCILIATION OF CONSOLIDATED OIBDA MARGIN TO CONSOLIDATED OPERATING INCOME MARGIN Three months ended Six months ended June 30, June 30, 2008 2009 2008 2009 OIBDA margin 42.5% 40.8% 41.6% 39.2% Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights) as a percentage of total operating revenues (2.0%) (2.4%) (1.8%) (2.4%) Operating income margin 40.5% 38.4% 39.8% 36.8% CTC MEDIA, INC. AND SUBSIDIARIES RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME (in thousands of US dollars) Three Months Ended June 30, 2008 Depreciation and amortization (exclusive of amortization of OIBDA programming rights, Operating sublicensing rights income and own production cost) CTC Network $53,886 $(265) $53,621 Domashny Network 3,373 (173) 3,200 DTV Network 5,901 (275) 5,626 CTC Television Station Group 19,423 (529) 18,894 Domashny Television Station Group 752 (658) 94 DTV Television Station Group 82 (713) (631) CIS Group (1,283) (222) (1,505) Production Group 701 (38) 663 Corporate (8,003) (530) (8,533) Business Segment Results $74,832 $(3,403) $71,429 Eliminations and Other (1,392) (2) (1,394) Consolidated Results $73,440 $(3,405) $70,035 Three Months Ended June 30, 2009 Depreciation and amortization (exclusive of amortization of OIBDA programming rights, Operating sublicensing rights income and own production cost) CTC Network $35,485 $(93) $35,392 Domashny Network 2,624 (72) 2,552 DTV Network 4,069 (623) 3,446 CTC Television Station Group 10,806 (453) 10,353 Domashny Television Station Group 684 (318) 366 DTV Television Station Group 48 (813) (765) CIS Group (145) (209) (354) Production Group 1,335 (7) 1,328 Corporate (7,130) (91) (7,221) Business Segment Results $47,776 $(2,679) $45,097 Eliminations and Other (1,267) (1) (1,268) Consolidated Results $46,509 $(2,680) $43,829 CTC MEDIA, INC. AND SUBSIDIARIES RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME (Continued) (in thousands of US dollars) Six Months Ended June 30, 2008 Depreciation and amortization (exclusive of amortization of programming rights and sublicensing Operating OIBDA rights) income CTC Network $99,666 $(509) $99,157 Domashny Network 8,079 (345) 7,734 DTV Network 5,901 (275) 5,626 CTC Television Station Group 30,557 (1,030) 29,527 Domashny Television Station 1,320 (1,283) 37 Group DTV Television Station Group 82 (713) (631) CIS Group (1,520) (353) (1,873) Production Group 701 (38) 663 Corporate (14,674) (1,062) (15,736) Business Segment Results $130,112 $(5,608) $124,504 Eliminations and Other (1,436) (1) (1,437) Consolidated Results $128,676 $(5,609) $123,067 Six Months Ended June 30, 2009 Depreciation and amortization (exclusive of amortization of Operating OIBDA programming rights income and sublicensing rights) CTC Network $69,917 $(224) $69,693 Domashny Network 6,121 (185) 5,936 DTV Network 8,382 (1,215) 7,167 CTC Television Station Group 16,490 (868) 15,622 Domashny Television Station 1,072 (629) 443 Group DTV Television Station Group (426) (1,534) (1,960) CIS Group (1,285) (431) (1,716) Production Group 1,610 (19) 1,591 Corporate (14,921) (156) (15,077) Business Segment Results $86,960 $(5,261) $81,699 Eliminations and Other (1,287) (0) (1,287) Consolidated Results $85,673 $(5,261) $80,412

(1) OIBDA is defined as operating income before depreciation and amortization (excluding the 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 margin.

(2) Segment revenues are shown from external customers only, net of intercompany revenues of $18.9 million in the second quarter of 2008, $15.9 million in the second quarter of 2009, $19.8 million in the first six months of 2008, and $23.2 million in the first six months of 2009, most of which related to revenues from the Production Group that have been eliminated in the consolidation of the Company’s revenues.

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

Source: CTC Media, Inc

For further information, please visit https://www.ctcmedia.ru or contact: CTC Media, Inc., Investor Relations, Ekaterina Ostrova or Ekaterina Tsukanova, 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