[R]1:00PM New York - ProSieBenSat.1 Media AG reports fiscal 2007 profit decline of 63% on 120 million euros charge.[/R]

Revenue Review

ProSiebenSat.1 Media AG, the largest independent broadcaster in Germany, reported preliminary fiscal 2007 revenue increased 29% to 2.70 billion euros from 2.09 billion euros a year earlier.

The broadcaster said sales rose across all business segments, particularly from new acquisition SBS Broadcasting Group which added 3.3 billion euros debts in July 2007 but helped ProSieBenSat.1 become the second biggest broadcaster in Europe. SBS operates TV stations and radio networks in several central and southeastern European countries.

Fourth quarter sales surged 51% to 987.3 million euros following the acquisition of SBS. On pro-forma basis, ProSiebenSat.1 2007 revenue rose 4.2% to 3.23 billion euros compared with 3.10 billion euros in 2006.

Earnings Review

ProSiebenSat.1 said net profit fell 62.9% to 89.4 million euros from 240.7 million in 2006, dragged by a heavy fine imposed by Germany’s Federal Cartel Office.

During the year, the company paid 120 million euro charge for stiffling competition from smaller rivals, and in the process eroded gains brought in with the consolidation of SBS.

Underlying profit, excluding the fine and other amortization costs, rose 28.9 million euros to 272.8 million.

The company estimated on March 5th, earnings of 1.23 euros per share and dividend of 1.25 euros per share for fiscal 2007.

In 2006, ProSiebenSat.1 paid a dividend of 89 cents per share when it earned 87 cents per share. EBITDA, earnings before interests and depreciation rose 36.3% to 661.9 million euros against 485.6 million euros in 2006.

Including the one-time-charge, ProSiebenSat.1 said EBITDA gained 8% to 521.3 million euros.

Business Review

ProSiebenSat.1 said the SBS acquisition-based depreciation and amortization costs leapt 76.2 million euros to 82.8 million euros.

At year-end, net financial debt climbed to 3.33 billion euros from 121.8 million euros a year earlier led largely by “higher financial liabilities resulting from the SBS acquisition.”

Higher operating costs and higher interest expenses from the financing for the SBS acquisition widened the net financial result from a loss of 57.5 million euro in 2006 to a loss of 135.5 million euro.

Operating expenses, consisting of cost of sales, selling and administrative expenses expanded by 670.6 million euro to 2.34 billion euro in fiscal 2007. The SBS purchase accounted for at least 436.1 million euro of the increase.

``The SBS acquisition internationalised the group and clearly reduced our dependency on single markets,'''' said company chief executive officer Guillaume de Posch.

Segment Review

ProSiebenSat.1 said revenues for the two segments in advertising-financed Free TV, German-speaking Free TV and Free TV International rose 28% to 2.30 billion euros from 1.86 billion euros the year before.

Revenue from the Diversification segment – which now also includes radio, print and premium Pay TV activities since the SBS acquisition – grew 160.7 million euros to 398.8 million euros accounting for 14.8% of total group sales. Last year, the unit contributed 11.4% to revenue.

The consolidation of solute, MyVideo and wer-weisswas.de also strengthened revenues in the diversification unit.