Zodiak Television strengthens its capital base through a rights issue of convertibles of a maximum of approximately SEK 177 million

The Board of Directors of Zodiak Television decided on October 19,
2007 to carry out an issue of convertibles with preferential rights
for the company's shareholders

This press release is not for release, directly or indirectly, in or
into the United States, Australia, Japan  or Canada. No offer is
being made hereby to any persons whose participation in the offer
requires that further prospectus, filing, registration or other
measures are taken in addition to those under Swedish law.

  * The Board of Directors of Zodiak Television decided on October
    19, 2007 to carry out an issue of convertibles with preferential
    rights for the company's shareholders

  * The Board of Directors also decided to complete the previously
    announced acquisition of Kanakna and carry out a non-cash issue
    of a maximum of 5,309,485 shares in Zodiak Television directed to
    the owners of Kanakna

  * Proceeds from the rights issue of a maximum of approximately SEK
    177 million[1] will be used partly to finance prior acquisitions
    and also to have available the means for future acquisitions
    aimed at  strengthening Zodiak Television's position in the
    European market for TV production

  * An Extraordinary General Meeting will be held on November 5, 2007
    to resolve on the Board of Director's decisions on the above
    mentioned issues of convertibles and shares

ISSUE OF CONVERTIBLES

Zodiak Television has successfully carried out a number of
acquisitions in striving to become a leading player in the European
market for TV production. The Group now needs to strengthen its
capital base, in order to finance the most recent acquisitions, while
at the same time creating the conditions for continued expansion.

Accordingly, the Board of Zodiak Television has decided, conditional
on approval of an Extraordinary General Meeting, to carry out an
issue of convertibles that, assuming that the issue is fully
subscribed, is expected to generate proceeds to the company of a
maximum of SEK 177.2 million before deduction of transaction
expenses. The right to subscribe for convertibles is offered to the
company's shareholders, in which four (1:4) shares held carries
entitlement to subscribe for one convertible in the nominal amount of
SEK 27. The subscription price is 100 percent of the nominal amount
per convertible, i.e., SEK 27 per convertible. The record date for
the right to participate in the issue shall be November 14, 2007.
Subscription for convertibles shall be made during the period
November 19 - December 7, 2007.

It is the Board's intention that a minimum of 50 percent of the
rights issue of convertibles shall be secured through declarations of
intent or guarantee undertakings from existing shareholders or
external parties.

TERMS AND CONDITIONS FOR THE CONVERTIBLES

The convertibles carry an annual interest rate of six percent from
and including January 1, 2008 up to and including May 31, 2013.
Interest is paid on May 31 each year, and finally on May 31, 2013.
The convertibles mature for payment in the nominal amount on May 31,
2013, to the extent that conversion to shares has not occurred prior
thereto. Conversion to shares may be effected from the registration
of the rights issue at the Swedish Companies Registration Office (Sw:
Bolagsverket ) up to and including March 31, 2013. The conversion
price is SEK 27. At full conversion, the number of shares in the
company will increase by 6,564,075 corresponding to a dilution of 20
percent.

The prospectus, application form and pre-printed issue statement will
be sent to Zodiak Television's shareholders beginning on or about
November 16, 2007.

ACQUISITION OF KANAKNA

Zodiak Television announced its intention to acquire the Kanakna
Group on October 1, 2007. The purchase consideration for the
acquisition of Kanakna will partly be paid through the above
mentioned non-cash issue and partly in cash. The subscription price
in the non cash issue has been set at SEK 26.1045 per share. The
acquisition is planned to be completed in connection the
shareholders' meeting.

Through the non-cash issue to the three owners in Kanakna, they will
together become Zodiak Television's largest shareholders, with 20
percent of the share capital and votes. The three owners in Kanakna
have in a lock-up agreement agreed to certain restrictions in their
rights to transfer the shares they receive in the non-cash issue.
The owners in Kanakna have undertaken to participate in the rights
issue of convertibles with a minimum of SEK 27 million.

EXTRAORDINARY GENERAL MEETING

The Board of Directors of Zodiak Television has decided to convene an
Extraordinary General Meeting on November 5, 2007, at 10am to approve
the decisions by the Board of Directors referred to above.
Zodiak Television's largest shareholder, Intercommerce, with
approximately 12 percent of the share capital and votes, has
announced that it will vote in favor of approval of the Board's
decisions on a rights issue of convertibles.
For further information about the Extraordinary General Meeting,
reference is made to the separate notice.

EXTRAORDINARY GENERAL MEETING

November 5, 2007 - Extraordinary General Meeting
November 9, 2007 - Publication of prospectus
November 9, 2007 - Last day of trading in Zodiak Television share
including subscription rights
November 12, 2007 - First day of trading in Zodiak Television share
exclusive of subscription rights
November 14, 2007 - Record date
November 16, 2007 - Distribution of prospectus and application form
November 19 -  December 4, 2007 - Trading in subscriptions rights
November 19 - December 7, 2007 -  Subscription period

ADVISER
Financial adviser to Zodiak Television in conjunction with the
transactions is Carnegie Investment Bank AB.

Stockholm, October 19, 2007

Zodiak Television AB (publ)

Board of Directors

For further information, contact:

Patrick Svensk, President and CEO, Zodiak Television, +46 (0)708 66
07 30

Peter Olofsson, CFO, Zodiak Television, +46 (0)704 31 21 51

Zodiak Television AB carries on the development, production and sales
of TV programmes under the brand names of MTV Mastiff, Mastiff Media,
Mastiff, Jarowskij, T & T Broadcaster, Look Entertainment, Diverse
Productions, Social Club Production 5th Element, Bird, TeleAlliance,
Dixi Media, YS Films, Bullseye and Kanakna in Sweden, Denmark,
Norway, Finland, England, USA, Poland, Russia, Ukraine, the
Netherlands and Belgium. The subsidiary company Zodiak Television
World sells the programmes and rights of the Group and other
production companies in the international market with customers in
more than 70 countries.

[1] Assuming that the acquisition of Kanakna is carried out as
planned, see below.