African Media Group decides to liquidate TV Africa

The Company filed the application for liquidation of TV Africa on 1 October 2003. TV Africa is the South African based operations and management arm of AMG and an important component of AMG's overall business. The decision to liquidate TV Africa, said AMG in an offical news release, was made after the development and careful consideration of a number of alternative options. However, none of these options were deemed likely to allow sufficient funding for AMG to continue its support of TV Africa.

AMG and its subsidiary commenced operations in 1998 and pioneered the development of a free-to-air television network. AMG delivers high quality television programming consisting of local and international programming of all genres and major sporting events such as the World Cup and the Cup of African Nations. Over the past 5 years, AMG has established itself as the largest free-to-air broadcaster in Africa with a footprint in over 23 sub-Saharan countries through its affiliate network and access to an estimated viewer base of 62 million.

While AMG's shareholders have demonstrated a deep commitment to the African media industry, as evidenced by the US$57 million invested in the Company since its inception, AMG's continued inability to meet its sales forecasts convinced them that the business, as structured, was not viable in the long term.