In Agreement With Major Shareholders Private Media Group Decides to Move to a European Stock Exchange

BARCELONA, Spain, Aug. 14 /PRNewswire-FirstCall/ -- Private Media Group, Inc. (Nasdaq: PRVT), a worldwide leader in premium-quality adult entertainment products, services, today announced the Company's decision to explore moving to a European stock exchange, preferably the AIM market on the London Stock Exchange.

AIM is the London Stock Exchange's international market for smaller growing companies. The AIM is the world's most successful growth market and it is especially designed to meet the diverse needs of small cap market companies from around the world. The AIM is on one of the world's most liquid capital markets for trading in shares of small and growing international companies. Over 250 companies incorporated outside the UK(1) are quoted on AIM, and the number is continuing to rise. This strong international interest reflects the fact that AIM presents an ideal
environment for international companies looking to use a public market to fund further expansion and raise their global profile.

Through the "Fast Track Route" to the AIM market, international businesses already listed on any of the AIM Designated Markets, which include the NASDAQ, can tap into the capital, liquidity and profile of the London capital markets through a simple and speedy process.

Berth Milton, Chairman, President and CEO of Private Media Group, Inc., commented, "There are several reasons behind this decision, with one being that most of our investors and businesses are located in Europe and against this background we have been considering moving to the AIM list for several years."

Mr. Milton continued, "Furthermore, we are extremely unhappy with the treatment small cap companies get from the US market and US regulatory bodies. During the past six months we have seen selling pressure on our stock increasing as a result of naked short selling. In naked shorting,
traders who hope to profit from falling prices sell shares without borrowing stock. Using that strategy, naked short sellers can drive down prices by flooding the market with orders to sell shares they don't have.

In my opinion, making money from selling shares that you don't own, while pushing down a company's share price, is absolute contrary to the whole purpose of a public listing. It is not only our stock which is subject to naked shorts. In June the number of US listed entities experiencing naked shorts was more than 425 companies(2). In addition to the naked shorting problem, we are also viewing the costly SOX 404 compliance as an anti-small-cap-activity and this is another reason why moving seems like a good idea and also a way of saving money."

Mr. Milton concluded, "Now that it is clear that the AIM market is here to stay and that it is a very successful market for companies of our size which are looking to grow, we have decided to explore making a move to this market very soon."

Further announcements will be made in due course.

NOTES TO THE EDITORS
(1) The number of international companies on AIM does not include a large number of companies who chose to come to the market as a UK incorporated company but having the majority of their assets abroad.

(2) See Bob Drummond's Aug 4, 2006 Bloomberg article "Naked Short Sellers Hurt Companies With Stock They Don't Have":

http://quote.bloomberg.com/apps/news?pid=20601109&sid=a387ALHm8OlU.

About Private Media Group
With its 40 year track record, NASDAQ listed Private Media Group is a world leading adult lifestyle company which distributes a wide range of erotic and semi-erotic multimedia content over several platforms, including wireless and broadcasting technologies, narrow and broadband Internet, DVD and Magazines. Private Media Group also licenses its Private and silver girls trademarks internationally for a range of luxury consumer products and owns the worldwide rights to the largest archive of high quality adult content in the world, which it distributes all over Europe, North America, Latin America, South Africa, New Zealand, Australia and Asia.

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 +34 93 590 70 70
johan.gillborg@private.com

SOURCE Private Media Group, Inc.

Profiles

Private Media Group

Private Cash

Adult Media