Sky Purchases Prime NZ

8 February 2006

Sky Purchases Prime NZ

SKY Television (SKY) confirmed today that it has purchased the television broadcasting business of Prime Television New Zealand Ltd (Prime) from Australian based Prime Television Ltd (Prime Australia) following receipt of Commerce Commission clearance.

The proposed deal was announced to the New Zealand Stock Exchange on November 18 2005, with the application for clearance to the Commerce Commission made on 25 November 2005.

SKY Television Chief Executive, John Fellet said, "The acquisition of Prime will enable SKY to diversify its revenue base providing it with increased advertising revenue. Contrary to media speculation SKY intends to retain the Prime business as a free-to-air network."

"We believe that the acquisition will enhance competition between television broadcasters providing more choices and options for New Zealand viewers"

"A free-to-air channel committed to screening rugby replays in primetime is an important element in our involvement in televised sport in New Zealand, the replay in primetime achieving a much greater viewership than a replay after midnight - acquiring Prime gives us that option", said Fellet.

Prime announced late yesterday that it is now offering a special low cost install, making the signal available to all households outside Prime's UHF coverage area through the installation of a satellite dish and decoder for a one-off fee (less than the cost of installing a traditional VHF aerial), whilst also providing a cost effective UHF solution for all households within Prime's coverage area.

Warwick Syphers, Chief Executive, Prime Australia said "We are delighted that this transaction has been approved and we believe that the business will now reach its full potential as part of the SKY group."

ENDS

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