PRIVATE MEDIA GROUP ANNOUNCES LANDMARK STRATEGIC ALLIANCE WITH MARC DORCEL

29 July, 2008 - Barcelona

Private Media Group, Inc.(NASDAQ GM: PRVT) a worldwide leader in premium-quality adult entertainment content today announced it has established a strategic alliance with Marc Dorcel to collaborate in the home video market .

The collaboration initiates with a three year DVD distribution agreement for France and going forward it is expected that Private and Marc Dorcel will explore additional opportunities in other Territories. It is also expected that Private and Marc Dorcel will join forces on several distribution platforms including Internet and IPTV/VOD in both France and across the EU. This will be very opportunistic as many new distribution platforms find it inconvenient to deal with a multitude of adult content providers. By combining the best adult brands and two of the main players in one strategic offering, Private/Dorcel can offer a “one-stop-shop” for most of the adult content needs any platform may require.

Peter Cohen, COO of Private said: “Private and Dorcel are the two dominant adult brands in Europe, and this new collaboration will solidify their strength in the market and provide French consumers optimal access to high quality adult entertainment with compelling new incentives and exciting promotions. Marc Dorcel is one of the best run operations in the adult business, and we are very pleased to have worked out a very cooperative relationship with them to strategically consolidate our content offerings and develop effective new B2B and B2C opportunities that will expand our collective success in France”.

Grégory Dorcel, CEO of Marc Dorcel commented: “We believe that the strategic alliance of major studios like Private and Marc Dorcel is the right approach for long term growth and success in what has become a cluttered adult marketplace. By joining forces and sharing experiences and know-how we will effectively offer the French audience top of the range products with compelling new marketing and promotional campaigns.”

The Private/ Dorcel collaboration is part of a global strategy which Private has been developing for the last eighteen months to establish more effective distribution and sales through content consolidation and cooperative relationships with other producers/distributors. Other announcements from Private are expected in Q3 and Q4 2008 to further rollout this new business model.

For further information please contact:

Simon Jordan

Marketing Department

Private Media Group
Tel +34 93 620 80 90
simon.jordan@private.com

SOURCE: Private Media Group