British Sky Broadcasting Group plc (‘BskyB’) announces that it has agreed to acquire a 24% interest in KirchPayTV Gmbh &Co. KgaA (‘KirchPayTV’), the leading supplier of subscription television services in Germany, subject to certain conditions, including regulatory clearance being obtained.

Tony Ball, Chief Executive of British Sky Broadcasting Group plc said

‘This acquisition gives BskyB the opportunity to acquire a significant foothold in the German Market. BskyB believes that the consolidation of DF1 and Premiere into KirchPayTV, creating a single brand and a clear agenda to build KirchPayTV’s business, combined with the experience of BskyB in building one of Europe’s most successful subscription television companies, gives significant opportunities for growth.’

Markus Tellenbach, Managing Director of KirchPayTV said

‘We are looking forward to our co-operation with BskyB, a strong partner with broad experience in successfully developing subscription television. Through targeted transfer of Know-how in sales and marketing, we will now proceed with the build up of the German digital subscription market.’

Dieter Hahn, Vice Chairman of the Board of Managing Directors of KirchGruppe and member of the Supervisory Board of KirchPayTV said:

‘BskyB’s confidence in KirchPayTV confirms our strategy for a long term successful development of the German digital subscription market and we are delighted that this transaction will also enable us to participate in the future prospects of BskyB through our investment.’

For further information please contact:
-BskyB
Analysts/ Investors
Martin Stewart, Chief Financial Officer, Tel: +44 171 705 3000
Roger Blundell, Head of Corporate Finance, Tel: +44 171 705 3000

Press: David Beck, Bell Pottinger Financial, Tel: +44 171 353 9203

KirchPayTV Contacts
Arnold Kulbatzki,Tel: +49 89 9958 6350, Fax: +49 89 9958 6358