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[jaybird249]

Like RICK, PTT? Look at PRVT.

You guys are right, sex sells, and PRVT does it- but in a big way- it is now experiencing double digit growth in wireless and Online content!
PRVT was hottest stock in October - doubled to $3.5. CEO has bought HUGE amounts above $3.

http://finance.yahoo.com/charts#chart1:symbol=prvt;range=3m;charttype=line;crosshair=on;logscale=on;source=undefined

From Q3 PR:
Going forward, the Company expects wireless and broadcasting sales to increase significantly given the rapid growth of these platforms and our leadership role in the adult entertainment category, (see comment on the business going forward below).

During the three month period, we realized a gross profit of 3.5 million euro, or 46% of net sales compared to 4.6 million euro, or 60% of net sales for same period last year. The decrease in gross profit was primarily the result of a 1.5 million euro decrease in gross profit from DVD & Magazine sales offset by a 0.4 million euro increase in gross profit from Internet, Broadcasting and Wireless sales. With respect to the decrease in gross profit percentage in relation to net sales, it was the result of higher DVD & Magazine sales volume at lower margins. The Company expects margins on DVD & Magazine sales to return to normal levels already in the fourth quarter of 2007.

The Company reported 0.5 million euro in net income for the three months ended September 30, 2007 compared to 1.0 million euro for the three months ended September 30, 2006.

Commenting on some important factors relating to the business going forward, Private Media Group, Inc., CFO, Johan Gillborg stated: "During the twelve-month period ending June 30, 2007, the European IPTV market experienced a tremendous growth of 231% to 5.0 million IPTV subscribers and based on this number we have currently reached a 74% (3.7 million subscribers) coverage of this market.

"While European broadband users are signing up for IPTV(i) services in the hundreds of thousands each month, making Europe the biggest and fastest growing IPTV region in the world (ii), we have successfully implemented part of our new media strategy and contracted for supplying content for TVOD services (iii) with 23 major platform operators in 11 territories in the region.

"With respect to these new IPTV platforms, it is important to note that our content has only been launched recently on relatively few of them and subsequently we have not seen any impact on our bottom line from this high-margin business yet. However, during Q4/07 and Q1/08 we are building up shelf-space on all platforms and by the end of the first quarter 2008 we will have full exposure of our content on these fast growing IPTV platforms. By the end of 2008 and 2009, the Company expects to have its content available to 7.3 million and 12.0 million European IPTV subscribers, respectively.

"In order to increase growth and profitability in our other types of broadcasting, we have restructured our trademark and content licensing business with respect to the operation and distribution of Private branded TV channels carrying our content in Europe and Latin America. The restructuring included finding new partners in these markets and subsequently we entered into agreements with Playboy TV Latin America and Playboy TV International. During the first nine months of 2007, both partners have expanded their reach for the Private branded TV channels. In particular we have seen significant growth in sales in Europe with the PrivateSpice TV channel. In addition, we recently partnered with New Frontier Media for the exclusive distribution of Private content to the U.S. broadcast market including video-on-demand, pay-per-view, IPTV and television. New Frontier Media's services reach over 139 million network homes and recently it was agreed that our content will soon be available on the first video-on-demand platform in the US to more than six million subscribers via one of the biggest operators. Going forward, the Company expects additional video-on-demand platforms to follow.

"With respect to mobile content, we believe this market is still in its infancy. As of September 2007, Private content was available to over 783 million handsets in 34 countries via 81 operators, of which 21 operators went live during 2007. The markets of Asia and the Americas are currently underexploited and therefore represent a significant growth potential to the Company. Mobile TV, increased penetration of 3G handsets and the implementation of age verification systems offer additional significant growth potential with both current and future operators in 2007 and beyond (iv).

"Furthermore, we recently entered into an exclusive global partnership with Mobile Streams to distribute our premium adult content through their platform for off-portal mobile services. Mobile Streams is a premier global mobile music and media provider and through this partnership we are entering a new dimension of mobile content delivery. The Company believes the user behavior for mobile content will migrate from on-portal to off-portal. The off-portal business will be the principal revenue generator going forward.

"As we are moving further into a world of global digital content delivery, DVD pricing and volume is being affected considerably and as a result the industry in general is experiencing a severe downturn in DVD sales. In view of the aforementioned, during the first quarter of 2007 we started a reorganization of our distribution of DVDs and Magazines. Through this reorganization, we expect to maximize existing sales and over time reduce the revenue impact of this on our overall business." Mr. Gillborg concluded.




Financial Highlights

(In thousands of euro, except per
share amounts) Three months ended
September 30,
2007 2006

Net Sales 7,453 7,772
Net Income 457 978

Weighted average common and common
equivalent shares outstanding:
Basic 53,148,166 53,037,036
Diluted 53,164,670 53,549,826

Earnings per share:
Basic 0.01 0.02
Diluted 0.01 0.02



NOTES TO THE EDITOR:
Footnotes
i IPTV - Internet Protocol Television - A system where a digital
television service is delivered using packets over a network
infrastructure. For residential users, IPTV is often provided in
conjunction with Video on Demand and may be bundled with Internet
services such as Internet access and VoIP. Despite its name, IPTV
typically does not come to consumers over the Internet, but over
carrier owned fiber optic, or coaxial cables to a TV-Set. IPTV is
provided by Internet service providers, telephone operators and cable
TV companies.
ii According to Global IPTV Forecasts made by MRG (Multimedia Research
Group, Inc.), the number of global IPTV subscribers is estimated to
grow from 13.5 million in 2007 to 72.6 million in 2011. Europe
continues to be the biggest market for IPTV, with France
significantly leading the growth projections through its principal
telcos. The number of IPTV subscribers in Europe is forecasted to
grow from approximately 6.4 million end of 2007 to 30.4 million in
2011, a compound annual growth rate of 48 percent.
iii True Video On Demand - (TVOD) - TVOD is the ideal VOD service where
individual users get immediate responses when interacting with the
VOD system. With TVOD, the user can not only get instant access to
the program online and watch it on TV, but also be able to do any VCR
or DVD-like commands on the VOD system with the same quick response
time as it is when working a VCR or DVD.
iv Juniper Research estimates in its white paper Adult to Mobile:
Personal Services -- Third Edition (September 2006) that the global
mobile adult content market will more than double over the next five
years, to nearly US $3.3 billion by 2011.

About Private Media Group

With its 40 year track record, NASDAQ listed Private Media Group is a brand-driven world leader in proprietary content delivery in its genre and distributes premium quality content globally via a wide range of platforms including; more than 783 million mobile telephone handsets, broadband Internet, television broadcasting, DVDs and Magazines. Private Media Group owns the worldwide rights to its extensive archive of top-quality content, and also licenses its Private and "Silver Girls" trademarks internationally for a range of luxury consumer products.

Disclaimer

This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.


For further information please contact:
Johan Gillborg
Chief Financial Officer
Private Media Group
Tel [phone]
[e-mail]