Message #14 From:
NewsBot Date: August 10, 2005 10:20:00 AM
MTRM News Metromedia International Group Inc. Announces Developments in Its Georgian Telecommunications Businesses
CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug. 10, 2005--Metromedia International Group, Inc. (the "Company") (PINK SHEETS: MTRM) - Common Stock and (PINK SHEETS: MTRMP) - Preferred Stock, the owner of interests in communications and media businesses in the country of Georgia, announced today that Magticom Limited, the Company's Georgia mobile telephony subsidiary, won a tender concluded in Georgia on August 5, 2005 for a license to offer mobile telephony services in the frequency range commonly used for delivery of 3rd Generation GSM mobile voice, data and video services. Magticom's 2.1 GHz spectrum license is only the third issued thus far in the former Soviet states and the only one in Georgia. Magticom will pay approximately 20 million Georgian Lari over 12 months for the license (equivalent to approximately US$10.8 million at current exchange rates). In July, Magticom won a Georgian tender for a license to offer services in a frequency range usable for offering CDMA data, voice and video services. Magticom will pay approximately 27 million Georgian Lari over 12 months for this 800 MHz spectrum license (equivalent to approximately US$14.6 million at current exchange rates). These new licenses position Magticom to provide mobile telephony services in Georgia that are as advanced as any now offered in the European Union or the US. Magticom is obligated by the terms of the licenses to introduce first services within 12 months. Each license is effective for a ten-year period and is effective country-wide. Magticom already holds long standing, renewable licenses to offer conventional GSM telephony services in the 900 and 1800 MHz spectrum.
Commenting on these developments, Mark Hauf, the Company's Chairman and Chief Executive said: "We are committed to maintaining Magticom's market leadership in Georgia and to providing mobile telephony services in Georgia that are on a par with the best in the world. These new licenses considerably extend Magticom's capability to deliver on these objectives and enable the company to fully exploit the latest offerings in mobile communication technology in arranging services for its customers. No other Georgian operator is presently licensed to operate over the wide range of spectrum that Magticom may now utilize. We intend for Magticom to promptly begin technology deployments around the new licenses that will result in the introduction of new service offerings during the coming year."
Commenting further on related business development strategies, Mr. Hauf stated: "We are actively pursuing alliances and acquisitions in Georgia and the surrounding Central Asian region that will both leverage and strengthen our core Georgian holdings. Our goal is development of a growing family of allied mobile and fixed telephony businesses serving the region. Magticom's continued strong performance coupled with the recent successful divestiture of our Russian interests and repayment of our long-term debt place the Company in a financially solid position to pursue this strategy. We believe that the value improvement for our shareholders already gained from the prior two years of corporate restructuring can now be further extended by active pursuit of and investment in such business developments."
About Metromedia International Group
Through its wholly owned subsidiaries, the Company owns interests in communications and media businesses in the country of Georgia. The Company's core businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephony operator.
This news release contains certain forward-looking statements that involve risks and uncertainties, including in particular those regarding the timing of completing its ongoing restatement activities and filing with the SEC its 2004 Form 10-K and first and second quarter2005 Form 10-Q's. Various other factors beyond the Company's control could cause or contribute to such risks and uncertainties. This also includes such factors as are described from time to time in the SEC reports filed by the Company, including the Current Annual Report on Form 10-K for the year ended December 31, 2003, the Company's Form 10-Q for the fiscal quarters ended March 31, 2004, June 30, 2004 and September 30, 2004 and its most recently filed Form 8-K reports (dated October 19, 2004, November 4, 2004, November 16, 2004, November 22, 2004 and December 9, 2004, January 6, 2005, February 9, 2005, February 17, 2005, March 9, 2005, March 23, 2005, April 19, 2005, April 20, 2005, June 7, 2005, June 17, 2005, July 12, 2005, July 18, 2005, July 25, 2005, July 28, 2005, August 3, 2005 and August 10, 2005). The Company is not under, and expressly disclaims any, obligation to update the information in this news release for any future events.
