Private Media Group, Inc., a worldwide leader in premium-quality adult entertainment products, services and mobile and Internet content, and Erotic Media AG announced the signing of a Pay-TV license and a VOD (Video-on-Demand) agreement for the use of the Company's content in the territory of German-speaking Europe.

Under the terms of the five-year Pay-TV Content Licensing Agreement, Private Media Group will receive 6 million euro, including 3 million euro in 2006 and 1.5 million euro in 2007, in exchange for Erotic Media's immediate and future access to a specified quantity of titles in Private's content library.

Additionally the two companies have also signed a five-year VOD agreement where Erotic Media will become Private's VOD content agent in German-speaking Europe whereby Erotic Media will have an unparalleled content offer in terms of both quantity and quality while obtaining maximum returns.

Bernhard Mueller, Delegate of the Board, Erotic Media AG commented: "We have chosen Private as our long-term partner because of its well established brand in German-speaking Europe and its consistent track record of delivering top quality content to consumers. This, along with Private's unparalleled ability to support our aggressive timeline and demand for quality and reliability, sets Private apart from other suppliers."

"We are very excited about this strategic alliance and the business opportunities we will now be able to harness," Mueller concluded.

Berth Milton, CEO, President and Chairman of Private Media Group stated: "These two highly profitable agreements are important steps in the Company's video-on-demand and broadcasting activities, which today, among others, include the cooperation with Playboy TV International and the Portland Television Group."

Mr. Milton continued, "With the impending IPTV/cable VOD explosion expected in Germany, we have selected to work with Erotic Media to benefit from their solid experience and true understanding of the German-speaking broadcasting market in Europe. This provides the best opportunity for both companies to maximize on actual and future market share and have the weight to best defend our interests at every stage."