Grupo Televisa & CIE Form Alliance For Live Entertainment In Mexico.

Grupo Televisa, S.A. and Corporacion Interamericana de Entretenimiento S.A. de C.V.(CIE) announced an agreement to form
a strategic alliance under which Televisa will acquire 40% of OCESA Entretenimiento, a newly formed subsidiary of CIE, which owns all the assets related to CIE’s Live Entertainment Business Unit in Mexico, for USD $107.2 million.

CIE and Televisa will benefit from the advantages of the live entertainment vertical integration model, the production and promotion of the best quality concerts, theatrical, family and cultural events, as well as the operation of entertainment venues, the sale of entrance tickets, food, beverage and souvenirs, and the organization of special, and corporate events. Each party will continue to produce and promote events separately outside of Mexico.

Important synergies will result from this strategic alliance, as both companies will contribute with industry know-how and management expertise. The newly created OCESA Entretenimiento will have access to Televisa’s unique media assets to promote its events throughout Mexico. In addition, Televisa will have the right of first refusal to broadcast on its open over the air channels and Pay TV ventures movies and events produced and distributed by CIE.

As part of the transaction, CIE has appointed George Gonzalez as Chief Executive Officer of OCESA Entretenimiento, and Grupo Televisa will appoint the Chief Financial Officer of the company. Mr. George Gonzalez previously served as CIE’s Corporate Director of the Live Entertainment Division and as General Director of CIE-R&P, the most important live event promoter in Argentina and Chile. He was later promoted to CIE’s South America Regional Director position, overseeing the Argentinean, Chilean and Brazilian activities.

OCESA Entretenimiento anticipates to have sales of USD $160 Million in 2002 and an EBITDA margin of 22% with expected revenue growth in the high teens for the next three years. OCESA Entretenimiento has only USD $7 million in debt and operates, among others the following assets throughout Mexico: 11 venues with a seating capacity of more than 230,000 people, Ticket Master, the leading ticket company in the country, several promotional ventures headed by OCESA, food, beverage and merchandising units, and Audiencias Cautivas, the largest producer of corporate events.

Televisa will make an initial payment of USD $60 million, and the remaining balance will be paid during the first quarter of 2003. CIE has made a commitment to Televisa, that OCESA Entretenimiento will generate a minimum accumulated EBITDA of USD $129 million by the end of 2005. In the event this threshold is not met, CIE will be required to reimburse Televisa in cash and/or stock of OCESA Entretenimiento with a limit of up to 9.9% of the Company’s outstanding stock.

“With this strategic alliance we both better position ourselves, as Televisa’s exclusive content and extraordinary expertise in the media industry, we believe is a perfect combination for increasing demand for live entertainment in Mexico” commented Alejandro Soberon Kuri, Chairman and CEO of CIE.

Mr. Emilio Azcarraga Jean, CEO of Grupo Televisa said: “This is an excellent opportunity to increase our supply of content and rely on the experience and vision of Alejandro Soberon and his great team of collaborators.”