Press release - July 19, 2005

LONDON, HAMBURG (14thJuly 2005) - Direct Entertainment, owner of the Time Life home entertainment brand is extending its video and DVD retail operation to the German-speaking territories of Europe, including Germany, Austria and Switzerland. The company has appointed Hamburg-based WVG Medien GmbH, a 90%-owned affiliate of the Cologne-based Splendid Medien AG, as its sole sales and distribution representatives for the territory, with immediate effect.

The move follows Time Life’s successful launch into retail in the US over five years ago and the UK in 2003 that has generated incremental sales of its special interest comedy and drama series.

Established as a global market leader in the direct marketing of video/DVD and music CDs to consumers, Direct Entertainment has created a highly successful direct response TV advertising and direct mail business, generating substantial sales around the world and in particular the US, UK, Australasia and Germany which are the company’s largest markets, respectively. It is expected that retailers in Germany will benefit from the massive awareness created by the TV campaigns as has been proven in the US and UK.

WVG Medien is one the leading DVD suppliers in the German-speaking territories in Europe. The company acquires licenses for DVDs and videos and also handles distribution for around 15 other companies. The contract with WVG in Germany will commence with the release of the hugely successful Lost Civilisations (Untergegangene Kulturen) series on 10th October. It will be released in a superb 4-disc ‘digi-pack’ covering 10 episodes of this Emmy award-winning series.

Richard Gray, European Retail and New Markets Director for Direct Entertainment said:

“Direct Entertainment and Time Life are uniquely placed to deliver tried and tested products to the retail market through the sales and awareness generated by our extensive direct response activity and we look forward to expanding our retail network into other territories.

“We are delighted to be working with WVG in Germany, Austria and Switzerland as they have the highest reputation in the retail market and we are confident that they can represent Time Life to the same levels of success as the UK and the US.”

WVG’s Managing Director, Alexander Welzhofer said of the deal,

“Time Life is a global brand and very recognisable in Germany, Austria and Switzerland where it has been actively marketing for many years through TV, press, mail and internet marketing. We are thrilled to be given the opportunity to work with a true market-leader that has a range of high quality product and an excellent market and consumer reputation.”

Time Life and the Time Life logo are registered trademarks of Time Warner Inc or an affiliated company. Used under license by Direct Holdings Holland BV which is not affiliated with Time Inc or Time Warner Inc.

For further information, please contact:

Uta Niedenzu
Marketing Director
WVG Medien GmbH
Neumühlen 17
22763 Hamburg
phone: +49 (0)40 890 85 - 0 ext. - 502
fax: +49 (0)40 890 85 9 502
e-mail: Uta.Niedenzu@wvg.com


Emma Diggory
Phone: +44 20 867 320 65

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