Endemol agrees to acquire French Endemol Business

Endemol agrees to acquire French Endemol Business Endemol N.V. (‘Endemol’) today announced that an agreement has been reached with Endemol Investment Holding B.V., a subsidiary of Telefónica, on the acquisition of Endemol France. Endemol intends to acquire Endemol France on the basis of an enterprise value up to EUR 450 million. Of this amount EUR 194 million will be deferred over a period of four years and will be subject to the performance of Endemol France, linked to the realisation of the business plan 2007- 2010 approved by the Board of Endemol France. The transaction will be financed by bank debt and future cash flow. Before acquisition-related amortization, the transaction is expected to be earnings enhancing for Endemol N.V. from the first year. In 2006 Endemol France is expected to realize net turnover of around EUR 175 million at a normalized EBITDA margin which is considerably above the average of the Group. Endemol France’s business mix is 10% Digital Media and 90% Non-scripted, led by formats such as Star Academy, Deal or No Deal and Watch Your Step. Background The French business was carved out before the IPO of Endemol N.V. in November 2005 because of a disagreement with the previous owners of Endemol France regarding the deferred purchase price for the French business. On 6 September 2006 it was announced that Endemol had been informed that an agreement was reached with the principals of Endemol France regarding the deferred purchase price for the French business, creating an opening for a possible acquisition of Endemol France by Endemol. Process and conditions The acquisition of Endemol France is subject to shareholders’ approval. An Extraordinary General Meeting of Shareholders will be held in February 2007, for which a shareholders circular will be issued