Time Warner Sells its Interest in Kabelkom

August 10, 1998

Budapest, Hungary: Time Warner Entertainment Company, the U.S.-based media company which owns cable programming and distribution interests in Hungary, announces the sale of its interest in Kabelkom, the Hungarian cable television systems which serve ten cities in Hungary. The new owner is Telekabel Hungary, NV, a Dutch telecommunications and programming company with investments and businesses in various European countries.

Time Warner will focus exclusively on the programming business and the operation of CEU Kft., the Hungarian satellite uplink company which was recently granted a 10-year telecommunications service license by the Hungarian authorities to transmit specialized services throughout Central Europe. Time Warner's programming investments in Hungary include HBO, the premium 24-hour per day movie channel, Spektrum, the Hungarian documentary channel and Z+, the Hungarian music channel.

Speaking on behalf of HBO Hungary, George Douglas, the company's Managing Director stated: " The separation of programming and distribution interests is part of a strategic move designed to facilitate the growth of both programming and cable distribution in Hungary. HBO expects to become much more involved in the development of the Hungarian and European film industry. We expect to broaden our partnership base in this country and are looking forward to an exciting new future in Hungary."

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