New pay TV service to launch in Germany and Austria

• New service to be called Sky
• Improvements for customers will begin in July
• Premiere AG to start trading as Sky Deutschland AG, subject to shareholder approval
• Extraordinary write-off of the Premiere trademark
• No impact on existing customer contracts

Munich, 14 May 2009.  Premiere AG today announces that it will launch a new pay TV service in July 2009. The new service will be called Sky and will replace the existing Premiere service at launch.

Chief Executive Mark Williams said: “I am very excited to announce our plans to create a new pay TV service. We intend to make changes that will fundamentally improve the experience for customers. Becoming Sky underscores our commitment to offer a world-class entertainment service in Germany and Austria. The Sky brand stands for the best choice of television entertainment available, giving customers high-quality programming that they cannot find elsewhere, putting innovative services into their homes and improving satisfaction with strong customer service. The changes will begin in July and customers have much to look forward to in the coming months and years.”

Subject to approval by shareholders at the Annual General Meeting, the name of the company will be changed from “Premiere AG” to “Sky Deutschland AG”.

As a result of the decision by the Management Board with the approval of the Supervisory Board to discontinue the use of the Premiere brand, the value of the Premiere trademark will be written off in Q2 2009. The impact on net income will be negative €256.1m, comprising the write-off of €331.6m offset by a release of deferred tax liabilities of €75.5m. 

Today’s announcement is the latest step in management’s strategy for rebuilding the business. Over the past six months, the new management team has made significant progress: closing the security gap in the service; securing the Bundesliga rights through to 2013; and successfully recapitalising the business. The decision to launch a new service under the Sky brand is part of management’s commitment to focus the business on its customers and to raise the bar for pay TV in Germany and Austria.

Today’s announcement will have no impact on existing customer contracts. Nevertheless, all existing customers will have the opportunity to adopt the new services when Sky launches in July. The company plans to unveil details of the new packages and pricing in early June.

The Sky brand and associated trademarks have been licensed from BSkyB.

Contact for press:                                       
Torsten Fricke                                                          
Vice President Corporate Communications         
Tel.: +49 89/99 58-63 50                                       
torsten.fricke@premiere.de                                    

Contact for investors and analysts:
Christine Scheil
Vice President Investor Relations
Tel.: +49 89/99 58-10 10      
christine.scheil@premiere.de 
 
This press release contains statements regarding future developments that have been based on current evaluations and have been made to best of the knowledge of the management of Premiere AG. Such statements with regard to future developments are subject to known and unknown risks, uncertainties and other factors that could cause the profit situation, profitability, value development or the performance of Premiere AG or the success of the media industry to diverge from those profit situations, profitability, value development or performance results that are assumed expressly or implied or described in these statements regarding the future. Considering these risks, uncertainties and well as other factors, readers of these documents should not rely in an incommensurate manner on these statements dealing with future developments. Premiere AG has no obligation to behave in keeping with such statements regardi ng future developments or to alter its behavior to accommodate future events and developments.