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Press release - 29 November 2006

CapMan exits from CTC Media Inc.

The Alliance ScanEast Fund L.P. (ASEF) co-managed by CapMan and Alliance Capital Management Corp. has exited from CTC Media Inc., which is one of the largest commercial television broadcasters in Russia. As a result of the fund’s last exit, its management company ScanEast Managing Partner Ltd received carried interest income in form of 102,419 shares in the NASDAQ listed CTC Media Inc. and has sold the shares for USD 2.3 million (EUR 1.7 million). The impact of the exit on CapMan’s result for 2006, taking minority interest into consideration, is approx. EUR 0.7 million as a result of carried interest received from the fund.

Eastman Advisors, a subsidiary 60 per cent owned by CapMan, owns 70 per cent of ASEF’s management company ScanEast Managing Partner Ltd. The impact of the exit on CapMan Plc Group’s result for 2006 is approx. EUR 1.7 million, of which EUR 1.0 million is minority interest and EUR 0.7 million is the share of the parent company’s owners due to the aforementioned ownership structure. The minority owners of Eastman Advisors Oy are four Finnish industrial companies and the other owner of ScanEast Managing Partner Ltd is Alliance Capital Management Corp.

 

ASEF has been presented in CapMan Plc’s interim reports among the funds with limited return potential to CapMan. The fund’s transfer to carry is due to recent favourable market value development of its last portfolio company CTC Media.

 

”CTC Media’s total operating revenues and profitability have clearly grown during the past years. Demand for television advertising has grown strongly thanks to the positive development of Russia’s consumer markets,” says CapMan Senior Partner Petri Saavalainen.

 

Alliance ScanEast Fund invested in CTC Media in October 1997. The fund made a partial exit from the company already in June 2006, when CTC Media was listed on NASDAQ. Alliance ScanEast Fund’s activities have terminated with the exit and the fund will be closed down by the end of the year.


For further information, please contact:

Petri Saavalainen, Senior Partner, Development Director, CapMan Plc, tel. +358 9 6155 8314 or +358 500 415 911

Olli Liitola, Senior Partner, CFO, CapMan Plc, tel. +358 9 6155 8306 or +358 40 605 040



CapMan
CapMan is one of the leading private equity investors in the Nordic countries and manages Nordic buyout, mezzanine, technology, life science and real estate funds with approximately EUR 2.6 billion in total capital. Each investment area has a dedicated team and altogether CapMan employs around 100 people in Helsinki, Stockholm, Copenhagen and Oslo. Established in 1989, CapMan has strong experience as a fund manager and as a partner for investors and entrepreneurs. To date CapMan has made over 150 Nordic investments and over 90 exits. The current portfolio encompasses over 60 companies with an aggregate turnover of approx. EUR 2.5 billion and aggregate personnel of 17,000 people. The latest investments are made in Finnish Maintpartner Oy, Danish ScanJour A/S, Swedish Neoventa AB and Norwegian InfoCare ASA. The portfolio of CapMan’s first private equity real estate fund consists of 22 commercial properties in the Helsinki metropolitan area. The B shares of CapMan Plc are listed on the Main List of the Helsinki Stock Exchange since 2001. www.capman.com  

CTC Media Inc.
CTC Media is one of the largest commercial television broadcasters in Russia offering entertainment programming. It operates two free-to-air Russian television networks, CTC and Domashny, and a number of owned-and-operated regional television stations. www.ctcmedia.ru