CDON GROUP LAUNCHES ONLINE SHOE RETAILER

CDON GROUP LAUNCHES ONLINE SHOE RETAILER

Modern Times Group MTG AB (publ.) (‘MTG' or ‘the Group'), the
international entertainment broadcasting group, today announced that 
CDON Group AB (‘CDON Group') has launched Heppo.com, which is a new
online shoe retailing brand. Heppo was launched in Sweden today, and
will be launched in Norway, Denmark and Finland during September. The
online store will initially offer more than 1,000 individual footwear
models from 100 different brands.

Heppo.com will be part of CDON Group's Fashion business segment, which
also includes fashion retailer Nelly.com and children's clothing
retailer LinusLotta.com.

 Heppo's initial range will include sneakers, high heels, pumps, boots,
slippers, loafers, wedding shoes, boat shoes, desert and hiking boots
from Scandinavian and international brands like Bobbie Burns, Clarks,
Filippa K, Fred Perry, Friis & Company, Tiger, Vagabond, Whyred, Loake
and Lloyd. 

 Hans-Holger Albrecht, President and CEO of MTG and Chairman of CDON
Group, commented: “The launch of Heppo.com will complement CDON Group's
current fashion retailing portfolio, and demonstrates CDON Group's
ability to expand by utilising its existing infrastructure to launch new
businesses in fast growing market segments.”

“We continue to work towards the demerger of CDON Group by means of the
distribution of the business to our shareholders, which we expect to
complete in the fourth quarter. This new launch is further evidence of
CDON Group's scale, ambition and clear growth strategy.”

ABOUT CDON GROUP

CDON Group comprises all of MTG's internet retailing operations and is
expected to be spun-off from MTG by means of the demerger and
distribution of CDON Group shares to MTG shareholders in the fourth
quarter of 2010.

MTG's internet retailing business was launched in February 1999 with the
introduction of CDON.COM, which initially sold music CDs via internet
sites in Sweden, Norway and Denmark. CDON.COM is now the number one
online retailer of entertainment products in the Nordic region, with a
broad offering of CDs, DVDs, computer games, books and electronic
products, as well as music downloads and on-demand film streaming
services. Finnish internet book retailer BookPlus.fi was acquired in
2007 and Swedish online toy retailer Lekmer.se was acquired recently in
April 2010.

CDON Group's Fashion business was established in 2007 with the
acquisition of fashion retailer Nelly.com and children's clothing
retailer LinusLotta.com, and the Sports & Health business was
established in 2008 with the acquisition of nutritional supplement
retailer Gymgrossisten.com and dietary and health supplement retailer
Bodystore.com.

CDON Group reported 26% year on year sales growth to SEK 927 (733)
million in the first six months of 2010, and a 55% year on year increase
in operating income to SEK 66 (43) million, with an increased operating
margin of 7%.

Mikael Olander has been President and Chief Executive Officer of CDON
since 2000 and of CDON Group (previously MTG Internet Retailing) since
it was established in 2007.

Please visit www.mtg.se (http://www.mtg.se/) for further information
about CDON Group and its operations.

***

For further information, please visit www.mtg.se (http://www.mtg.se/) or
contact:

Hans-Holger Albrecht, President & CEO
Tel: +46 (0) 8 562 000 50 

Investor & Analyst Enquiries:
Matthew Hooper
Tel: +44 (0) 7768 440 414
Email: investor.relations@mtg.se (investor.relations@mtg.se) 

Media Enquiries:
Bert Willborg
Tel: +44 (0) 791 2280 850
Email: bert.willborg@mtg.se (bert.willborg@mtg.se)