Private Media Group Announces New Agreement for Internet Driven Video-on-Demand Distribution

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Source: Private Media Group Inc.

By: Company Press Release

(BARCELONA, Spain) — Private Media Group, Inc. (Nasdaq: PRVT – news) worldwide leader in premium-quality adult entertainment products, services and Internet content, announces a new agreement for distribution of Internet driven video-on-demand on broadband via the media[netCom] AG network.

Private Media Group, through its local German distributor VPS-Film Entertainment, and media[netCom] AG from Germany have agreed to distribute video-on-demand from Private’s gigantic video library via broadband to media[netCom] AG’s customer base of local networks for further distribution to the end consumer. The thirty-month agreement calls for Private to provide content for the entertainment service and media[netCom] AG will market the service to its customer base of local networks. media[netCom] AG will also encode, store and stream the entertainment through its network via broadband to local networks. media[netCom] AG is also extending its existing digital Parental Control feature to enable subscribers to prevent access to movies according to ratings, or to block access to the entire content library for any specific period of time.

The companies will introduce the on-demand service in the German speaking territories in Europe during the year 2000. The agreement is based on a split system.

Berth Milton, CEO of Private Media Group commented:

“We are very happy to have entered into our first broadband business agreement with such a promising new technology company. Private Media Group is in a unique position to satisfy the demand of new technology organizations like media[netCom] AG due to its extensive video library. Our strategic position as the world’s largest content provider highlights us as the major player in the adult entertainment industry for this type of agreements.”

The media[netCom] corporation for digital medium communication GmbH, with headquarters in Marburg, Germany, evolved out of ipp-soft GmbH which was in 1995. From 1996 to 1998 ipp-soft GmbH developed database and multimedia systems including dedicated solutions for IP-Streaming and Internet databases. By 1998 broadband media communication was established as one of the corporations main fields of activity supported by specific know-how acquired by the in house development of encoding and streaming technology. At the beginning of 1999 the firm was renamed media[netCom] GmbH and backed in its expansion by a Swiss investment corporation. By mid 1999 amalgamation with the public quoted subsidiary of this corporation was concluded in Berlin in a Downstream Merger resulting in the formation of media[netCom] AG. media[netCom] AG is listed on the Neuer Markt this summer.

For more information, visit the media[netCom] AG corporate Web site at www.media-netcom.com

The leading publicly-quoted adult entertainment company in the world, Private Media Group Inc., is the founder of the globally established brand name ‘Private’ and has positioned itself in the marketplace with a visionary management strategy that combines both New Economy (Internet, multimedia, e- commerce) and Old Economy (videos, magazines) business models. Maintaining a total adult lifestyle philosophy, this is reflected in the Company’s broad range of products and services, both proprietary and licensed, and its strategic policies of development, diversification and acquisition.

For more information, visit the Company’s corporate Web site at www. prvt.com.

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 judgements 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: In Barcelona, Spain: Johan Gillborg of Private Media Group Inc., +34-93-590-7070, johan@milcap.es; or In London, England: Adam Reynolds of Hansard Communications.Com, +44-207-840-7782, adam.hansard@clsholdings.com.