Private Launches on Yet Another IPTV Driven Video-on-Demand Service in Europe as Part of Digital TV Offer From Belgium's Leading Telecom.

BARCELONA, Spain, April 12 /PRNewswire-FirstCall/ -- Private Media Group Inc. announced today a multi-year agreement with the Belgacom Group, Belgium's leading telecom, for the supply of content for distribution via their Video-On-Demand (VOD) service on the Belgacom TV platform.

The agreement includes access to hundreds of titles from Private's proprietary movie library and includes both new releases as well as classic blockbuster titles. With this agreement Private takes another step forward in its aggressive strategy to be featured on all major IPTV & Cable VOD platforms in Western Europe by the end of 2007.

Berth Milton, CEO, President and Chairman of Private Media Group commented: "This is yet another agreement with a leading telco in the dynamic European IPTV/VOD market. We are very pleased with being able to add Belgium to our list of European territories in this new business area and look forward to working with Belgacom's outstanding Digital TV platform." Mr. Milton added: "The IPTV/VOD market is without doubt the fastest growing TV experience and compared to traditional broadcasting, such as Pay-Per-View in the US, our experience is that it generates higher sales per subscriber at a considerably lower cost. IPTV/VOD will most definitely be a significant source of both sales and profits for Private going forward."

   NOTES TO THE EDITOR   About Belgacom TV  

When launched in 2005, Belgacom TV was the first IPTV offer in Belgium. Today, the platform offers the Classic+ package of more than 70 channels, video-on-demand, thematic channel packages and "11", a channel which broadcasts all of Belgium's first-division football matches. Besides the digital sound and viewing quality, the advantages Belgacom TV has over its competitors are its channel offering and coverage. Unlike traditional analogue cable distributors, who with a limited number of TV channels have an 80 market share, the distribution of Belgacom TV is not limited to a certain municipality or province. The Belgian operator's TV offer is today available to 80 of Belgium's 4.1 million households.

About the Belgacom Group

The Belgacom Group is the benchmark Belgian provider in the field of integrated telecommunications services. With a history as the country's incumbent operator, the Belgacom Group, through its strong brands of Belgacom, Proximus, Telindus and Skynet, has developed a complete range of offers and solutions. Thanks to its 18,000-strong workforce, its expertise in fixed and mobile networks and its capacity to innovate, it is able to provide a reliable, high-quality service to all its customers -- whether they are private individuals, professionals, companies or organizations.

The Belgacom Group (BELG), quoted on Euronext Brussels since March 2003, posted total revenue of EUR 6.1 billion and a net operating profit before depreciation and amortization (EBIDTA) of EUR 2.1 billion for the financial year ending 31 December 2006.

   For more info: http://www.belgacom.be/    About Private Media Group  

With its 40 year track record, NASDAQ listed Private Media Group is a brand-driven world leader in proprietary content delivery in its genre and distributes premium quality content globally via a wide range of platforms including; more than 600 million mobile telephone handsets, broadband Internet, television broadcasting, DVDs and Magazines. Private Media Group owns the worldwide rights to its extensive archive of top-quality content, and also licenses its Private and "Silver Girls" trademarks internationally for a range of luxury consumer products.

Disclaimer

This release contains, in addition to historical information, forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.

   For further information please contact:    Gareth Davies   CUSTARD PR   gdavies@rainierpr.co.uk   Ph: +44 (0) 20 7494 6576   Cell ph: +44 (0) 7980 820994  

CONTACT: Gareth Davies of CUSTARD PR, +44 (0) 20 7494 6576, or cell, +44 (0) 7980 820994, gdavies@rainierpr.co.uk, for Private Media Group

Web site: http://www.belgacom.be/