Metro International (STO:MTROA) Metro Signs Franchise Agreement With Leading Free Newspaper In Moscow

Metro International (STO:MTROA) Metro International SA ("Metro International"), the international newspaper group, today announced that it has entered into a franchise agreement with Gazeta Metro in Moscow.

Metro International has formed a joint venture with ESN Group and this joint venture has acquired a stake in Gazeta Metro, the most read free newspaper in Moscow.

ESN Group is a Russian investment company, investing in and managing assets in the energy, engineering, real estate, transportation and media sectors.

Gazeta Metro was started in 1997 as a partnership between Sistema Group, the Moscow city government and Moscow Metropolitan (the Moscow subway owner and operator). Gazeta Metro is distributed in the Moscow subway and with 400,000 daily readers is the third most read newspaper in the city.[1]

Metro International has, through its new joint venture with ESN Group, an effective equity interest of 0.81% in Gazeta Metro. Gazeta Metro's other shareholders include the founding shareholders Moscow Metropolitan and the Moscow city government.

Metro International holds an option to acquire additional shares in Gazeta Metro. ESN Group, through a coupled option, has the right to acquire an equity stake in Metro St. Petersburg, a Metro International franchisee since 2005.

Metro International will receive a franchise fee from January 2009, reflecting Metro International's engagement in the running and development of Gazeta Metro.

With Metro International's support Gazeta Metro will be re-launched and rebranded in 2009 to make it consistent with the strong brand that Metro International has developed globally. Metro International will work closely with Gazeta Metro to ensure that the Metro International Group's know-how is fully implemented at Gazeta Metro.

Synergies between Gazeta Metro and Metro St. Petersburg exist and these will be exploited. These synergies include content sharing and advertising sales packages. Together Metro Moscow and Metro St. Petersburg have the highest readership of any newspaper in Russia's largest two cities.

Moscow is Russia's leading economic centre by a sizeable margin and with its population of 13.5 million inhabitants is one of the largest cities in the world. Zenith Optimedia estimates that Russia's gross newspaper advertising market grew 19.1 % year on year in 2007 to US$ 11 billion.

Per Mikael Jensen, Metro International's President and CEO commented: "The very pleasing development of Metro in St. Petersburg over the last three and a half years has made us receptive towards expanding further in Russia. We have for many years kept a watchful eye on the media sector in Moscow, waiting for the right opportunity. With ESN Group as our partner as well as subway distribution rights we hope over time to establish Metro in Moscow as a leading print medium. The Moscow advertising market is much larger than that of St. Petersburg and therefore this joint venture has significant promise."

[1] Source: TNS Gallup

For further information please contact:

Per Mikael Jensen, CEO and tel: +44 (0)20 7016 President 1300 Robert Patterson, EVP tel: +44 (0)20 7016 1300

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ABOUT METRO INTERNATIONAL AND METRO Metro is the largest international newspaper in the world. Metro is published in over 150 major cities in 20 countries across Europe, North & South America and Asia. Metro has a unique global reach - attracting a young, active, well-educated Metropolitan audience of over 20 million daily readers. Metro's advertising sales have grown at a compound annual rate of 38% since the launch of the first edition in 1995.

Metro International 'A' and 'B' shares are listed on the OMX Nordic Exchange's Nordic List under the symbols MTRO SBD A and MTRO SBD B.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



LINK: http://hugin.info/132142/R/1278642/285302.pdf

Metro International

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ISIN: SE0000696841

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